How to save money by not spending it
If you are sometimes struggling with your personal finances and want to start to save money, the first thing you have to do is become more conscious of your spending.If you have a close look at your spending habits, you'll find lots of opportunities where you can save money.
It sounds obvious, but the easiest way to save money is not to spend it.
I started doing this a few years ago, and I will give you some hidden expenses you need to be aware of and where you can save money.
I'm sure when you review all your expenses, there will be many things you don't need or some that you can make yourself completely for free.
You will be surprised by how many money-wasting goods you buy every month without being really aware of it. By this post, I want to raise some awareness so you can cut some costs, put money aside, and who knows, do a little bit for the environment.
Check and review your subscriptions
This one was an eye-opener for me when I first reviewed my monthly expenses.
Review your monthly credit card statements and find out if you have recurring monthly payments. I'm sure you'll have several of them.
Now review each of them, do you need cable tv and Netflix and HBO? Do you still go to the gym where you have that cheap monthly subscription? Do you still need that software package you used once?
Note from the author: I still had a premium subscription to Canva, which I last used a few months ago. You can always find free software that does the same (by the way, for this blog, I use good old Notepad. For editing pictures, I use good old Paint and some free online software). There was also a family subscription to Netflix, but it is only used by my wife and me. I also had a monthly subscription for an API, which I don't use anymore, and a subscription for Skillshare, ...
By canceling all of these, my next statement was 68$ less.
Review your monthly credit card statements and find out if you have recurring monthly payments. I'm sure you'll have several of them.
Now review each of them, do you need cable tv and Netflix and HBO? Do you still go to the gym where you have that cheap monthly subscription? Do you still need that software package you used once?
Note from the author: I still had a premium subscription to Canva, which I last used a few months ago. You can always find free software that does the same (by the way, for this blog, I use good old Notepad. For editing pictures, I use good old Paint and some free online software). There was also a family subscription to Netflix, but it is only used by my wife and me. I also had a monthly subscription for an API, which I don't use anymore, and a subscription for Skillshare, ...
By canceling all of these, my next statement was 68$ less.
Takeaway coffee
A delicious Latte Macchiato from Starbucks in the morning on your way to work might be your perfect start for the day. But have you ever thought how much all of that costs over a week?
Cut your daily consumption and invest in a coffee machine at home and buy the coffee pads you like (don't go for the fancy brands; get the cheaper ones, the taste is not that different).
Triple gain here: you save time because you make your own coffee at home, and you don't have to make a detour to pass by your Starbucks. Also, your mornings will smell so much better with the smell of fresh coffee in your house.
And most importantly, you can easily save up to 70$ per month.
And guess what? You can do exactly the same for your Subway sandwich. Prepare your sandwich at home and bring it to work.
Cut your daily consumption and invest in a coffee machine at home and buy the coffee pads you like (don't go for the fancy brands; get the cheaper ones, the taste is not that different).
Triple gain here: you save time because you make your own coffee at home, and you don't have to make a detour to pass by your Starbucks. Also, your mornings will smell so much better with the smell of fresh coffee in your house.
And most importantly, you can easily save up to 70$ per month.
And guess what? You can do exactly the same for your Subway sandwich. Prepare your sandwich at home and bring it to work.
Negotiate and bargain
This particularly applies to service providers like cable and internet, insurance companies, ... These companies want to retain their customers, and most are open for negotiations or reviewing your existing contracts.
But before you contact them, do your homework by researching current promotions and deals with other companies in your area.
Please choose the right timing to contact them; never do it on Monday Monday morning when they are flooded with work and likely less open for negotiations.
If you're an existing customer, ask your provider if there are some discounts or loyalty rewards for loyal customers. Often, such deals are kept from the public.
If you could get a good deal, make sure to have it in writing and have confirmation of it sent to you by email.
But before you contact them, do your homework by researching current promotions and deals with other companies in your area.
Please choose the right timing to contact them; never do it on Monday Monday morning when they are flooded with work and likely less open for negotiations.
If you're an existing customer, ask your provider if there are some discounts or loyalty rewards for loyal customers. Often, such deals are kept from the public.
If you could get a good deal, make sure to have it in writing and have confirmation of it sent to you by email.
Takeaway, home delivery and packaged meals
It's so easy to put a packaged meal into the microwave. Wait a minute, and your meal is ready.
It is so easy to take your phone, open your favorite food app, and order food that will be delivered quickly.
Indeed, it is all so tempting to order online food or microwave your dinner, especially after a busy day. You save some time and make it easy for yourself.
But have you ever thought about how unhealthy these packaged meals are? They are full of chemical stuff to make them tasty and to preserve them longer.
Instead, go once or twice a week to the grocery store or supermarket and prepare your meals yourself. If you can't cook at all, there are many YouTube tutorials on preparing your favorite meal yourself.
Again, there is a triple gain here. First of all, you will eat more healthier. You save lots of money monthly (this can go up to 150$ a month), and you can put the leftovers in the freezer or take them to work for lunch the next day.
You will also start enjoying cooking and become a small master chef. Note from the author: if you think fresh vegetables are too expensive, buy the frozen ones! These have the same nutritional value and are, most of the time, cheaper.
It is so easy to take your phone, open your favorite food app, and order food that will be delivered quickly.
Indeed, it is all so tempting to order online food or microwave your dinner, especially after a busy day. You save some time and make it easy for yourself.
But have you ever thought about how unhealthy these packaged meals are? They are full of chemical stuff to make them tasty and to preserve them longer.
Instead, go once or twice a week to the grocery store or supermarket and prepare your meals yourself. If you can't cook at all, there are many YouTube tutorials on preparing your favorite meal yourself.
Again, there is a triple gain here. First of all, you will eat more healthier. You save lots of money monthly (this can go up to 150$ a month), and you can put the leftovers in the freezer or take them to work for lunch the next day.
You will also start enjoying cooking and become a small master chef. Note from the author: if you think fresh vegetables are too expensive, buy the frozen ones! These have the same nutritional value and are, most of the time, cheaper.
Check electricity consumption
Electricity will become more and more expensive in the upcoming years. Time to check and review your consumption.
Do you need to have the AC for so long? Does your TV need to be turned on all the time?
Make it a habit to turn off electronics that consume standby power when they are not in use. Change older light bulbs with energy-saving LED bulbs.
If financially possible, replace your fridge and freezer with Energy Star-rated models that consume less energy. Okay, these are more expensive, but they will save you lots of money on energy consumption.
One thing that many people aren't aware of is that many electricity providers offer community programs where you sign up with a group of people for electricity and get a nice group discount.
All these points (and many more, like installing smart thermostats, upgrading insulation, etc.) will not only save you lots of money monthly but also be very good for the environment.
Do you need to have the AC for so long? Does your TV need to be turned on all the time?
Make it a habit to turn off electronics that consume standby power when they are not in use. Change older light bulbs with energy-saving LED bulbs.
If financially possible, replace your fridge and freezer with Energy Star-rated models that consume less energy. Okay, these are more expensive, but they will save you lots of money on energy consumption.
One thing that many people aren't aware of is that many electricity providers offer community programs where you sign up with a group of people for electricity and get a nice group discount.
All these points (and many more, like installing smart thermostats, upgrading insulation, etc.) will not only save you lots of money monthly but also be very good for the environment.
Some bonus tips
There are so many ways to cut your monthly costs, like:
Use coupons and discounts
Shop secondhand
Borrow instead of buying
Use your bike or public transport instead of your car
Use cash instead of your credit card
automate your savings
...
Let me know in the comments if you know other ways to cut your monthly costs.
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