When it comes to saving money, there are hundreds of little saving money tips out there that show you how to do small changes in your everyday life and save a bit of cash. This article takes a different approach. It will mostly focus on save money tips with a large payoff – tips that have a very large impact on your finances. Thus, it is also natural that implementing these tips won’t happen overnight. Rather, it will take planning and time to put them into action, but once you do it, it will be worth it.
Common Sense Saving Money Tips
One of the most effective saving money tips is to rethink your living space. This is economically beneficial both in the short term and in the long term. Rethinking your living space is about looking into how much space you really need. A lot of people own and/or rent a lot of space which isn’t actually essential, and as we all know space is certainly not a cheap commodity.
Rethinking your living space begins with one step – getting rid of all your clutter (this is one of the best saving money tips in its own right). It means going through everything you own and deciding what to keep, what to donate, and what to sell. You should keep in storage only seasonal clothes and a few other items. If you need a storage unit or a whole room to keep all your extra things, then you are keeping too much. Just from selling some of your things you will get some extra money in your pocket and you could put the earnings into an emergency fund or a savings account. Also, this tip goes both ways – when you need something, always try to look for used first. Without any preconceptions or assumptions, just ask around, ask friends and family and check online. Even with that little effort, you might find exactly what you need for a steeply discounted price.
The second step in rethinking your space is to assess whether it makes sense to move into a smaller house or apartment. If you are facing serious financial difficulties, then the answer will probably be yes. But, even if you are not and you are just implementing these saving money tips to save for retirement or investments, you should still take this question into serious consideration. Moving into a smaller place can save you serious money and it’s worth considering what you could do with the savings. Also, while you are calculating the benefits vs. the costs, also look into renting and owning as housing alternatives. A lot of people think that owning your house/apartment is an investment and clearly the way to go, but that is just a preconception. Whether it is true or not depends on the circumstances i.e. the mortgage rate, insurance cost, rent, etc. of the specific places you are considering.
The second set of saving money tips has to with transportation. A car costs a lot to obtain and to maintain. On top of that, it costs a lot to store – you need a garage and you probably have to pay for parking most places you go. But is it really necessary? With carpooling, public transportation and bicycles, you have three great alternatives to using a car on a daily basis. Public transportation can be a great way to save money, especially if you obtain seasonal or yearly passes which come at a significant discount. Using a bicycle to get around is a great way to be environmentally-friendly, keeps you active, and it’s basically for free.
You don’t have to pick one of these alternatives – you can find a combination that suits your lifestyle. For example, you could carpool to and from work, use the bicycle for traveling in your leisure time, and use public transportation occasionally as the need arises. Selling your car and making a switch to these transportation alternatives probably won’t be easy at first, but the savings really are considerable. Thus, if you have committed to a frugal lifestyle and taking saving money tips seriously, then you should at least read up on each of these transportation alternatives for the area where you live and see what people have to say about feasibility, practicality and cost-efficiency.