Little Known Ways to Save Money

Saving money for growth

Since I was still a kid I was always good at saving money. I was like no one from my family. No matter how much we had in the house, or how was the general situation in my country (we went through two wars and one hyperinflation) I always managed to save some money. I was never a miser and I always went out gladly, always bought myself whatever I desired and somehow I always managed to save money.

I have realized that other people are struggling with saving money, as from what I’ve seen they always try to cut down expenses (like heating, gas for the car, etc) and actually spend that money somewhere else.

So I thought it would be useful if I would share with you my ways to save money. But, before we continue, I’d like to point one thing. No matter how much you earn, you can always spend more.

Open a savings account

Open a savings account or just use your plain old piggy bank. Whenever you put something in it, don’t get it out. Don’t touch it. Forget that you have it. If you don’t have enough money to survive a month – don’t use that money. You should not consider it at all.

Be persistent

Be persistent and put 10% of each income in your savings. I know you might be tempted to put more at some times due to higher earnings or unexpected earning (bonus), but don’t. If you made some extra money, you deserve to spend it. At least a majority (90%) of it. The reason for this is that you need to be persistent. You are used to spending money… so if you’re not persistent with putting the money in, you won’t be when it comes to getting the money out, or even worse, not put any money the next time you have income. So, be lazy instead of hard working on saving, but be persistent.

Make your money work for you

Don’t just work for the money. Put the money on the account with interest rate and earn even when you’re not working. This helped me increase the value of my money even before I knew anything about investing.

Invest in life insurance

While you might be healthy and well, never forget to invest in life insurance. You never know what might happen and before you know it, you might spend all of your savings on health (this does not apply only to USA which have a poor health system). In case you have the insurance, you won’t be thinking of that, and you won’t cause yourself additional stress. So choose wisely and choose a quality health insurance.

Before buying ask yourself if you need it

It doesn’t always have to be need. Sometimes you might just want something. If you really want it, afford it, but if you don’t really want it and you don’t really need it, don’t buy it. This will save you a lot of money and you’ll be able to spend it on things you like, need or want.

Never go all in

No matter how good something is, weather it is investment, purchase or opportunity, never spend all of your savings money. Leave at least 10%. This will be a foundation for your next round of savings and will boost your confidence.

To sum it up, you don’t need to give up on things you like. 10% will almost never make a difference in spending and can make a huge difference in savings in only one year. Now put an effort into starting and practicing this, and it will become a self-motivating thing soon enough as you’ll see your savings increase.

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My name is Dejan and I've built different businesses across different countries.
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Comments

  1. Jennifer Tyson says

    Thanks for advice Dejan, these were some really nice tips, but it sounds hard not to use money from savings if I can’t survive the month!

    • acke says

      Hello Jennifer,
      Thanks for sincere opinion. I know it is hard and tempting, I’ve been there… But you really should try and avoid using the money you saved. After the first time you do it, it will be easier. I promise ;)

  2. Jacob Ethan says

    Good article. Useful. I think I read some of the points in a book I read some time ago. Anyway, it’s appreciated. Keep up the good work!

    • says

      Hi Bill,
      I know how you’re feeling, but 10% is just enough so you don’t feel it and you don’t give up on too many things, and you don’t reach your savings when you don’t have enough money. Being lazy and disciplined about saving means you will be lazy and disciplined about using money you saved. 10% of your monthly income will save you one full salary in 10 months, so it’s not that low as it seems.

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