If you want to save half of your income, check out my tips! With those tips I managed to increase my savings to half of my income!
It is said that the best way to increase your savings is to earn more, but we all know that it is not always possible for us to change our job.
That’s why we have to work with what we have.
- START WITH TRACKING YOUR EXPENSES
Believe me or not but before you start saving money you need to know how much you spend and on what.
I have heard hundreds of times that people are afraid to check their account balance or that they have no idea where their money goes. Maybe you are one of them?
Have you ever had this thought that you have no money in your account and you don’t know where it went because you didn’t buy anything special or expensive? Well, we have all been there.
So yes, looking into your balance and checking what you are paying for is the key to start saving half of your income.
- CUT OFF UNUSED SUBSCRIPTIONS
When you go through your balance you will see how many things you subscribe for and don’t even remember or use that.
It can be Youtube, Spotify, iCloud (I was paying for additional space that I wasn’t even using) or any different thing.
Usually it also happens when you sign up for a free trial and then you don’t even notice that you are being charged for a paid subscription or you just forget to cancel it (that is exactly how I paid for Canva pro – I simply forgot to cancel my subscription after a free trial).
- UNSUBSCRIBE FROM SHOPPING E-MAILS (NEWSLETTERS)
I’ve bought many things that I wasn’t even planning to buy because of e-mail marketing!
Sometimes I even ordered something, didn’t like it and forget to return it. That was such a waste of money.
Now I unsubscribe from all the e-mail from shops and I save both money and time (because I was scrolling shops endlessly).
- MEAL PLAN
Meal planning is a great way to save lots of money. By planning your meals you avoid the situation when you order something because you have no idea what to cook today.
Meal planning can also help you to cook for more than one day to save some time! And preparing your food in advance reduces the costs of buying lunch for work.
- MAKE GROCERY LISTS
When you have a meal plan you can prepare a grocery list. This will help you to avoid buying stuff that you don’t need and stick to your plan. It is not only a path to save half of your income but it also reduces food waste!
- DON’T SHOP WHEN YOU’RE HUNGRY
It is proven that we buy more when we are hungry.
Do you know that feeling that you are so hungry that you buy so much unhealthy food that you are not even able to eat later? Try eating something before you do your groceries and you will see the difference.
And what is important – it applies not only for grocery shopping but also when you go to the mall and after shopping you are super hungry so you visit McDonnald or any other fast food.
If you eat before you leave the house there is a chance that you won’t be craving for fast food after shopping.
- SWITCH TO PAYING WITH CASH
Paying with a card makes us spend more. It is proven that when we pay in cash we feel so-called „pain in paying” which basically means that it is emotionally harder for us to spend more money when we need to hand someone a cash rather than just swipe a card.
It is also proven that when we pay in cash we are more satisfied with the purchase and we also buy less unhealthy food.
There are so many benefits of paying with cash that it is hard to say „no” to this method. Just try it, at least for a while.
By the way, organisations which help people to pay their debts also recommend this method.
- AUTOMATE YOUR SAVINGS
The biggest mistake we make is saving what is left after your paycheck while it should be the opposite.
But I know that saving money can be difficult and our willpower is limited so try to automate your savings.
Make an automatic transfer to your savings account each month and spend only what is left.
- START BUDGETING
Budgeting is a powerful tool to save money. It is really eye-opening and helps you to control your money.
When you see exactly the numbers – how much you spend on bills or on other expenses you are able to determine what you can cut off.
Try a zero-based budget or 50/30/20 method and see which one fits you best.
- SWITCH INTERNET, PHONE OR ELECTRICITY PROVIDERS
Very often switching providers can save you tons of money.
Sometimes even trying to switch providers helps to negotiate better offers with your current provider.
It applies to the internet, phone, gas, electricity, car insurance and many others.
- USE WATER FILTERS
Filtering your tap water is typically more cost-effective compared to purchasing bottled water.
While the upfront cost of a water filter may be higher, it is a one-time investment that can provide clean water for an extended period.
Filtering your own water can save you money in the long run, especially if you consume a significant amount of water daily.
- USE PUBLIC TRANSPORT INSTEAD OF A CAR OR USE A BIKE
Public transportation or cycling can be significantly cheaper than owning and maintaining a car.
You save money on fuel, parking fees, insurance, registration, and maintenance expenses.
It can be especially beneficial for individuals living in urban areas with well-developed public transport systems.
- REDUCE TAKE OUTS
Dining out or ordering take out can be expensive compared to cooking at home.
By reducing take outs and preparing meals at home, you can save a significant amount of money over time.
Plan your meals, shop for groceries, and cook in batches to have ready-to-eat meals throughout the week.
- REDUCE COFFEE TO GO
Buying coffee from cafes or coffee shops can add up over time.
Consider brewing your own coffee at home and investing in a quality coffee maker or French press.
This simple change can save you money on daily coffee expenses.
- FOCUS ON PAYING OFF YOUR DEBT
Paying off your debt should be a priority as it helps you save money on interest payments.
Allocate a portion of your income towards debt repayment, focusing on high-interest debts first.
Consider strategies like the debt snowball or debt avalanche method to accelerate your debt payoff.
- CUT OFF CREDIT CARDS
Credit cards often come with high interest rates and can lead to impulsive spending.
Consider cutting off or reducing your reliance on credit cards.
Pay with cash or a debit card instead to avoid accumulating debt and paying interest.
- START LOOKING FOR NO-SPENDING ACTIVITIES
Engage in activities that don’t require spending money.
Explore hobbies, outdoor activities, free community events, or utilize resources like public parks, libraries, and local community centers.
By finding enjoyable activities that don’t involve spending, you can save money while still having fun.
- READ MORE BOOKS FROM THE LIBRARY INSTEAD OF WATCHING TV
Instead of spending money on entertainment like cable subscriptions or streaming services, utilize your local library.
Borrow books, magazines, movies, or even access digital resources such as e-books and audiobooks.
This allows you to enjoy entertainment without incurring additional costs.
- ALWAYS HAVE YOUR WATER INSTEAD OF BUYING BOTTLE ONE
Buying bottled water can be expensive and environmentally wasteful. Invest in a reusable water bottle and carry it with you.
Filling it up with tap water whenever possible can help saving money on bottled water purchases.
- ALWAYS TAKE LUNCH TO WORK
Packing your lunch instead of eating out during work hours can result in significant savings.
Plan and prepare your meals in advance to avoid the temptation of buying expensive take-out meals or eating at restaurants.
- CUT OFF ALCOHOL AND SOFT DRINKS
Alcoholic beverages and soft drinks can add up to your monthly expenses. Consider reducing or eliminating these purchases and opt for more cost-effective alternatives like water, homemade drinks, or non-alcoholic beverages.
- BUY IN BULK
Buying non-perishable items or items with a long shelf life in bulk can be cost-effective.
Look for sales, discounts, or warehouse stores where you can purchase items in larger quantities at a lower unit cost.
Just make sure you have the space to store them and that you will use them before they expire.
- BUY GENERIC
Opt for generic or store-brand products instead of name brands. Generic products often offer comparable quality at a lower price.
Compare prices and read reviews to ensure you are getting good value for your money.
- BUY SECOND HAND CLOTHES
Second-hand clothes are typically more affordable than buying brand new items.
You can find quality clothing at a fraction of the original retail price, allowing you to stretch your budget further and potentially buy more clothes for the same amount of money.
I usually buy my second-hand clothes on Vinted or Facebook Market.
- SELL CLOTHES YOU DON’T WEAR ANYMORE
Selling your old clothes allows you to declutter your wardrobe and create more space.
It helps you get rid of items you no longer wear or need, making it easier to organize and find the clothes you actually use and enjoy.
Selling old clothes can be a simple way to generate some extra cash. Instead of letting your unwanted clothes sit idle in your closet, you can turn them into money by selling them to others who may find value in them.
- USE COUPONS AND PROMO CODES
Utilizing coupons and promo codes can lead to significant savings on your purchases.
Look for coupons in newspapers, magazines, online coupon websites, or retailer apps.
Apply promo codes during online checkout to receive discounts, free shipping, or other offers.
- USE CASHBACK APPS
Cashback apps allow you to earn money back on your purchases. Simply scan your receipts or make purchases through the app to accumulate cashback rewards.
Over time, these rewards can add up and provide additional savings.
- BUY CHEAPER ALTERNATIVES OF FOOD OR OTHER STUFF
When shopping for food or other items, consider buying less expensive alternatives.
Compare prices, look for generic or store-brand options, and be mindful of sales or promotions.
Choosing cost-effective alternatives can help you save money without compromising on quality.
- TRY NO-SPEND MONTH CHALLENGE
A no-spend month challenge involves committing to a month where you avoid unnecessary spending on non-essential items.
It encourages you to be more mindful of your expenses, find creative ways to entertain yourself without spending money, and prioritize your financial goals.
- SET UP YOUR FINANCIAL GOALS AND TRACK YOUR PROGRESS
Clearly define your financial goals, whether it’s saving for a vacation, paying off debt, or building an emergency fund.
Set specific targets and track your progress regularly. This helps you stay motivated, make informed financial decisions, and adjust your spending habits to align with your goals.
- DO YOUR NAILS AT HOME
Instead of visiting a salon for nail care, consider doing your nails at home. Invest in a basic nail care kit and learn simple techniques for manicures and pedicures.
This DIY approach can save you money on salon expenses over time.
- ASK FRIEND FOR HELP WHEN YOU NEED TO FIX SOMETHING AT HOME
Instead of hiring professionals for every home repair or improvement task, consider asking friends or family members with relevant skills for assistance.
You can exchange favors or provide a meal in return, reducing or eliminating the cost of hiring professionals.
- VERIFY ALL YOUR AUTOMATED PAYMENTS AND CUT OFF WHAT YOU DON’T NEED
Regularly review your automated payments, such as subscriptions or memberships, and evaluate their value and necessity.
Cancel or unsubscribe from services you no longer use or find unnecessary. This helps avoid unnecessary expenses and frees up money for savings or other priorities.
- BUY EVERGREEN
When purchasing items like furniture or home decor, opt for classic and timeless designs that won’t go out of style.
Buying evergreen pieces reduces the need for frequent replacements or updates, saving you money in the long run.
- SET UP SAVING ACCOUNT
Open a dedicated savings account to deposit and grow your savings. Having a separate account helps you track your progress and prevents the funds from being spent on unnecessary expenses.
- CUT OFF JUNK FOOD
I know you love it. I love it too. But it is not healthy and what is more important – it’s expensive. Try to cut it off. If not completely then maybe by half?
Reducing or cutting off junk food won’t be easy at first but if you try meal planning and taking lunch to work/school with you, you will avoid the temptation to buy junk food.
- BUILD EMERGENCY FUND
Emergency fund is money that you put aside and you don’t touch it unless there is an emergency. And by emergency I don’t mean that Apple released a new iPhone.
Emergency is an unexpected expense that you are not able to cover from your monthly paycheck. It can also be used when you get sick or lose your job.
Emergency fund should cover 12-months of your monthly expenses. So even if you lose your source of income you will be able to survive for a year.
- CREATE SINKING FUNDS FOR BIGGER EXPENSES
Sinking funds help you prepare financially for larger expenses in the future. By setting aside money regularly, you avoid being caught off guard when these expenses arise.
This reduces financial stress and allows you to handle the expenses without relying on credit or going into debt. When you have a sinking fund in place, you can cover the cost of an expense directly from the funds you’ve saved.
This eliminates the need to borrow money or use credit cards, thereby helping you avoid accumulating debt and the associated interest payments.
- CUT OFF PEOPLE WHO HAS BAD INFLUENCE ON YOU
You know the saying, who you associate with, that’s who you become?
If your friends spend money mindlessly on parties or brand-name clothes, you will naturally be drawn in the same direction. It’s the same with leading a healthy lifestyle, so you’re probably familiar with this mechanism.
If your friends take care of their diets, you will naturally start paying attention too. However, if your friends drink a lot of alcohol, often hang out in expensive restaurants and spend their free time shopping, then unfortunately, you will even unconsciously duplicate their behavior.
So if you want to save half of your income, you need to spend time around people who will help you with that.
- ACKNOWLEDGE YOUR EMOTIONS AND OTHER SPENDING TRIGGERS
However, this is among the most important lessons to start saving money. If you become aware of how emotions affect your spending, you will certainly be able to learn how to prevent it.
Use the 24-hour method (before you buy something give yourself one day to think about whether you need it), the 1-month method (similar to the 24-hour method, but mostly used for larger expenses, such as a new phone).
In addition to your emotions, your spending is also affected by your environment. Have you ever noticed that during events or trips/holidays, you spend more money than usual and justify it with “special circumstances”?
This is a very common behavior and sure, there is nothing wrong with it, but if you want to start saving more money, you need to keep this in mind and make such decisions consciously.
- DITCH GYM AND EXERCISE AT HOME OR OUTSIDE IF THE WEATHER IS NICE
If you have the opportunity, skip the gym. You can jog outside or do workouts at home (you can find many tutorials with exercises at home on Youtube).
- QUIT SMOKING
I know it’s easy to say, but perhaps if you count how much you spend on cigarettes per month or per year, you’ll start to see that it just doesn’t pay off for you in the long run.
If taking care of your health doesn’t convince you, perhaps the extra money will.😊
- BUY OUTSIDE THE SEASON
I love shopping in the off-season, because it is cheaper then. Of course, you have to reckon with the fact that you have less choice then, nevertheless, you can always find something nice and not spend more on it, just because it happens to be in season (e.g. buy a swimsuit in winter and a fall coat in early summer).
- BUY GOOD QUALITY CLOTHES
Buying good quality clothes may involve more expenses, but in the long run you limit the amount of money you spend on clothes.
A decent coat or shoes will last you a few seasons and you will have to buy a new shirt, jacket, t-shirt or shoes every few months.
If you want to reduce your spending even further, look for used clothes on Vinted or Facebook market.
- STOP FOLLOWING INFLUENCERS ON SOCIAL MEDIA
Influencers earn money by advertising other companies’ products (affiliation). They promote all sorts of things, using, as it were, the trust of their audience.
Of course, they ensure that they only recommend things that they think are good and that they themselves use. Strangely enough, however, they always do this as part of a paid partnership (as if they themselves never buy things they can gratuitously recommend).
The scheme is simple. You start seeing a particular product in various influencers you follow on social media, and unknowingly you start ordering it as well. From there, it’s an easy road to unplanned purchases.
One more piece of advice from me…
Remember that it is not easy to make such changes at once. And not all of my advices will be good for you.
For example, sometimes it is impossible to switch from a car to a bike, because maybe your work is too far away? Or maybe there is no convenient public transport to use instead of a car. It is important to apply those tips which work for you.
And small progress with saving money is still progress. Maybe at first you will be able to increase your savings rate by 10%? That is great too! Just keep trying and you will get to the point where you will be able to save half of your income!
