You must be wondering if this is possible. Due to this pandemic, people lost their jobs. It’s pretty tough to earn money to save money.

I hear you.

It is challenging for obvious reasons. Costs of living costs increased significantly over the years. The salary increase is like a thing of the past. Millennials are struggling to pull out a $1,000 emergency saving.

The sad part is most people rely on their savings to meet up emergencies. If you don’t have solid plans on how to save money, it becomes more challenging.

I agree with you. It is hard, yet saving money is still possible.

Even when I tried to save 15% of my salary each month. I found saving is not my thing until I discovered pretty solid strategies.

I will share some of my preferred money-saving tips. Just try to apply one of these, you would start saving for sure. From today!

Let’s dive in.

Be passionate for saving: 

At first set your mind for saving. You have to be determined to save money irrespective of your salary.

In the beginning, you will face that it feels hard. However, your mindset will guide you.

Believe me or not, due to your positive mindset, you will find ways to save.

Just imagine you have $5,000 in saving. And feel that you can confidently pay any of your emergency bills without asking for help from anyone. This will motivate you to save money.

It will make you independent.

You can save money only by making a few changes in your lifestyle. If you believe that one day you can become a proud owner of your house without a mortgage, it will help you take action to save.

Start saving as early as you can: 

You might have heard this! As they say- Compound Interest is the eighth wonder of the world.

If you understand it, you will earn it. If you don’t understand, you will pay for it. It’s a very powerful force!

Your small saving today and consistent saving will grow with time by this compound effect.

Maybe your today’s savings is minimal, but the consistency of your saving behaviour will do the magic for you.

Entrepreneur, Job holder, students, homemaker, and retired person whatever you are, it does not matter. The sooner you start better.

Overestimation is detrimental: In the beginning, we try to save a large amount of money. We tend to overestimate our saving goal.

I believe this was the reason I couldn’t save money earlier in my life. Every time I got a salary in my bank account, I tried to save at least 50% of it.

When did I see It was not possible? I ditched this saving idea—stupid me.

Today’s habit of small saving will save you tomorrow.

Assume your income is 10% less:

It’s a common habit that we plan our expenses first. Second, we plan to save.

As a result, people exhaust all their money in expenses, and nothing is left for saving.

To overcome this problem, the best solution is to put 10% of income aside and, if possible, invest in stocks or other low-risk asset classes. Try to restrict your monthly expenses by 90% of your income. And, always calculate your salary to be 90% of your actual salary. If you earn $5,000 a month, always assume that you have $4,500 for your all expenses.

Use 10 seconds’ rule: Sometimes, we get influenced by different types of sales promotions or techniques and buy these products without realizing the actual need.

If you go to any store and take any product in your hand then think for 10 seconds “Do I really need this? Can this money be expensed in any better option?” by holding that product.

I am sure there will be some products which are not really needed, or you will be good without purchasing those.

After getting out of the store, you will feel proud because you did not spend your hard-earned money in less important product. By practising this rule, I have saved about $100 a month by not spending in unnecessary products.

Going Cold turkey on credit cards: Buying things on credit and paying monthly interest would be dearer to you.

Let’s clarify how a credit card works. The bank sets a credit limit in your credit card. You can spend the money up to the limit. And you have to repay the amount within 45 to 60 days. Before the due date payment, there is no interest. After the due date payment, you will be charged a high-interest rate.

There are many advantages as well as some disadvantages in the credit card. The significant disadvantage is that you can overspend now if your heart wishes.

You would get a bill shock after you receive the credit card statement. Right now, it will be wiser for you to stop using credit cards if your income is not good enough.

If you have less willpower to control yourself, then you should not have a credit card. If you have a credit card, you will purchase more than your need and will be captured by the debt trap.

If you increase your will power, you can recoup some benefits of a credit card.

Some online payments are straightforward by credit card. Most of the time many outlets offer discounts 15% to 20%. You can use the credit card to lower your purchase costs.

Love your paper currency: Let’s face it. Going out dinner with friends or family members, it feels easy to pay the bill by your credit card.

Usually, we are comfortable to swipe our card. Whatever amount we pay; we don’t feel any emotion at all.

Just imagine, you are counting the physical dollars to pay people’s dinner bill. It will be painful. This will give you some shock too.

Think, you have to pay 200 dollars, and you have two options to pay. One is by swiping your card, and another one is by physical cash. We know swiping is easier than carrying cash. But when you take out a 200 dollar note, you will feel the pain that money is leaving you. Whereas if you swipe your card, you feel nothing.

Carrying cash has a psychological impact on your brain. Using cash will save you money for sure.

Be a guru on KAKEIBO Method: Peter Drucker said, “If you can’t measure it, you can’t manage it” and this is so true.

Everyone should maintain the income and expense statement of their personal life. Make a budget for the month and maintain the statement for each income and expense items. Most of the Japanese do this and call this as KAKEIBO method.

Japanese KAKEIBO Method of Budgeting has grown popular all over the world only for its good practical reason. Most of the Japanese follow this KAKEIBO Method. They have brought a revolutionary change in their country as well as their economy.

They don’t buy any unnecessary product or don’t spend their money in a less important event.

Wait for Discount & Offer: I love discounts. And who doesn’t?

Sometimes, I would wait till black Friday or any other seasonal discount campaign.

Largest companies and shops often provide offers for a big sale! On any National Days or on the occasion of the closing of the year, they announce different attractive offers like Buy one

Get one! 50% discount on sale!

You can wait to take advantage of this offer season if your needs are not very urgent. You can definitely save money by accepting these offers. But remember this- you should not be an impulsive shopper. Only the necessary product you will buy.

Shop around for high-cost products: Furniture, appliances, white goods electronics are costly. You have to compare the prices of these as well as the product quality, product warranty and after-sales service etc. Comparing prices among different shops or browsing sites, you can save a fair amount of money.

Be a Budgeting guru: If you don’t make a budget for your monthly income and expense, you will never control your expenses.

Only by preparing the budget, it’s possible. A good plan can help you get success very quickly, and the budget is the best tool to achieve financial success.

Prepare your income and expense budget and try to follow it. Then you will not spend the excess amount than your income.

Emergency Fund build up: To survive this pandemic shock, you must build an emergency fund to support your uncertain future. By taking as little as putting 3-5% of your income, you can build an emergency fund. This amount can support you for six months’ worth of living expenses. This fund will help you avoid going to debt for spending uncertain emergency expenses.

Keep Record for Every Spending: When you keep a record for each and every spending, then it will be easier to be an ideal thrifty person, and you can save money. You can check the record daily or weekly, and it will show you complete expense details at a glance. It is beneficial.

Avoid Debt: Your income is really yours to make your dream life. You have to try in every way to pay off your student debt, credit card debt and any other consumer debt except the home loan. The sooner is, the better. Always try to avoid debt. If you fall in the trap of interest of the debt, it will be harder to get out. Debt will kill your savings. So always try to avoid the debt.

Apply 30-day rule: If you are going to purchase an expensive product, then apply the 30-day rule. It’s effortless and easy to follow. When you have decided to buy a high-cost product like home appliances, electronics gadget, or furniture, you have to wait 30 days. Then ask yourself, is it essential for you? Till 30th day is the answer is “Yes”, then purchase the product. This rule will help you to avoid buying an unnecessary high-cost item and save money.

Saving Plan for Retirement: Some experts think fifteen per cent of your yearly income should go to your retirement fund. When you actually retire, this saving will be like your child and provide you with financial support. From today start saving some money from your monthly income and plan for retirement.

Quality Purchase saves money: Buying cheap doesn’t save you, but the high-quality product does. Purchasing is your investment. It’s maybe appliances, electronics or maybe your cloth. Before purchasing, you have to be assured about the quality, and maybe you have to spend a little more. Do that because you will not buy this for a long time.

Downsize your phone bill: People usually don’t utilize 100% of their network provider services. What do I mean by that? Well, my phone plan had 40 GB data offer each month. I only used 30% of the data. When I realized that I am out of the contract. I immediately signed up lower value plan and saved my monthly subscription from $60 a month to $35 a month.

You can do this too. At first, find out how much data and talk time do you need. Then shop around for best offers with the good network coverage. You will save money for sure.

Conscious use of Gas, Water and Electricity: You cannot pass a single day without using these three. Every month you have to spend a fair bit of money on it. To save money in utility bill, a small habit change can do the job.

Just be aware of the misuse of these national resources every time. Don’t burn gas unnecessary, don’t waste water and be aware of unnecessary using of electricity.

Turn off the extra light bulb form your home, switch off your light if you are not at home, use automatic electronic room heater or air-conditioner that can control its’ temperature by itself automatically. You will be surprised how much you can save in utility bill.

Turn a blind eye to Expensive Club: Becoming a member of an elite club is a show-off, nothing else.

People gather in this club to show off their expensive car, dress, ornaments, cell phone and spend a lot of money on their artificial Entertainment, avoid this.

Instead, you can find the real Entertainment by real engagement. Ask your neighbour for an evening gathering. And the best one is passing the time with your family. These are really free of cost, and you can feel the real happiness in your heart.

Say no to Gym, Use Your Local Park for a while: If you can exercise by free of cost, then why are you paying money for that. Yes, use your local park that is near to your home for exercise instead of a gym.

Because you don’t have to pay a dime for using this park. You can breathe in the fresh air; beautiful natural scenery will relax your eyes too. So, cancel gym membership for a while and continue using your local park and save money.

This trick alone will save you $80-$100 a month.

Be Food conscious: It is regrettable that every American waste one-pound food every day where a large part of the population of the world is hungry. So, next time think twice before creating a food mountain on your plate. Putting Food only, which you will eat, has the potential to save food waste.

Mindful of your hourly rate: When you are going to buy a product, then calculate how much time is going to spend. Then you can calculate how much it costs money-wise, i.e. multiply your hourly rate to total hours spent. Calculate how much you spent to collect this product. This will provide you with a pretty solid idea of how much time you are wasting to get this product. Instead, you can use this time to some online money-making activities. Alternatively, you can order online or get your family member to collect the product for you.

Laugh at Sales Promotion: We see crazy offers going on all the time. You will feel the urge to buy the product just not to miss the offer.

From today, you can laugh at those promotional offers. Be calm and quiet, think twice and find out the answer “Is it really needed for me?” Never purchase an unnecessary product by becoming a forced buyer. Save the money now as the better thing is waiting for you.

Buy second-hand Products: I am not suggesting you buy used tires, toothbrushes, or underwear. But the products you are going to buy that can be used and you will be comfortable in using them and can save a good amount of money. For example, you can buy a used car, books, video games, home furniture so on.

Reading in Library: Create a habit reading in the library. Obviously, this habit will increase your knowledge. And, you can practice reading in healthy Entertainment. Most of the people don’t know it’s a great resource for free Entertainment, especially for kids. So, make your habit reading in the library and save money from buying books.

Don’t be fooled by Brands: Let’s accept it, buying branded products is expensive. You buy branded products and believe that it’s the best of quality. Often, branded companies spend more money on packing, marketing to attract you. However, generic products don’t do that.

To save money, you can buy the generic products, the same product but different branding name. Look into generic medications, trash bags, cleaning materials, essential pantry items, basic clothes and more. Basically, we are not very excited about the brand of these types of product. You can save money by purchasing the generic instead of the named product.

MasterChef at home: We love to eat out. It will save money for making a meal at home. Try to cook new Food, new recipes and to set up a family picnic instead of going to the restaurant. Learn cooking various delicious Food on YouTube and enjoy the test of Food as like a restaurant and save money. Offer some of your Food to your friends and neighbour. You might get MasterChef status in no time.

Apply 24 Hour Rule: Like a 30-day rule, apply 24-hour rule before purchasing your daily essential product. Before purchasing, wait 24 hours and if you still feel the need, then buy it. This spending will be the most fruitful.

Need Entertainment, think local park: During a pandemic, you couldn’t go to the cinema. You desired to hang around with friends at a local bar or night club. These are expensive options too.

Well, there is an alternative option. How about watching an open air cinema at a local park. In my city, events are happening every month.

Just check this out on google and next time bring your friends and family together to enjoy open-air cinema at a local park.

Love Public Transportation: I get it, you love driving going to work. Often you have to spend money on petrol, parking ticket, Insurance premium not to mention any parking fines. 

Alternatively, public transportation is way cheaper. It saves your money as well as your time. You can read, write, or work on your laptop when you are in public transport. Over the year, you will save a lot.

Live minimalist life: Check your closet, and you will find some unnecessary and unused items that you don’t use at all. Sell them to your friend, neighbour or sell on eBay or craigslist. You will be surprised after selling these products, because these unused products may give you extra cash.

Rent your equipment: If your tools earn money on its own, then why you have to spend money for them?

Rent your tools like drills, mowers, cameras to your friend or neighbour and earn money. Usefully these tools are used in very occasionally. For extra cash, its always recommended.

Rent Your Extra Room: It’s a popular source of income. By luck, if you find an extra room at your house, you can rent it on Airbnb and earn money. It will add an additional income source to your monthly income.

Rent Your Parking Spot: You can rent your parking spot in two ways and earn money. One, if you have a parking spot but don’t have a vehicle, then rent a parking spot for weekly, monthly, or yearly. Another one is if you have a car, but you have to drive it to the office, and the whole day the parking spot remains empty then you can rent out during your working hours. It works very well if you live in the city area.

Earn Money through Hobbies: What’s your hobby? Photography, painting, calligraphy, computer programming, cooking! You can sell photos, paints, a wishing card, dishes whatever you have and earn money. Nowadays, it’s straightforward to find out the customer because of the internet.

Sell Your Skill and Knowledge: Everyone has some particular skill like Photography, painting, calligraphy, computer programming. Beside your job, you can teach your friend, neighbour, or somebody else and earn some money as a teaching fee. By teaching skill and knowledge, you can earn as well as can improve your efficiency.

Run with your neighbour’s dog: You don’t have any work? You have to stay at home? Don’t worry about that. If you are an animal lover and enjoy having fun with animals, then find out your neighbour’s dog.

Offer your neighbour that you can take their dog out for running.

Most of the time, your neighbour needs help. When they go to work and need to look after their pet at home, then they can leave the pet to you. In exchange for looking after the pet, you can earn money.

Delete Credit Card Information from Website: You are used to Click & Buy on online. It’s easy to spend when your credit card information stored on a website. So, make it harder, delete credit card information from all online accounts then you will be bothered to input the card information again and again. It will reduce unnecessary spending and save money.

Utilize Savings Account: Save money in your saving account instead of checking account. Saving accounts give some interest against the deposit after a period, but checking account is only for bill payment, purchase and for shopping, gives nothing. So, you can use the saving account as a virtual piggy bank. When you purchase, round up the amount and after payment, put the rest amount in the saving account. Within a year, it will be a healthy amount.

Automatic Deduction: In these days, you can set up a direct debit in your accounts from online banking.

Set up a direct debit in the checking account. In every month, this will put your savings into the savings account automatically. If you set up $100 per month as direct debit, your year-end deposit will be $1200. Plus, you will get some interest too. So, it’s a very effective way to save money with some interest.

Using Budgeting App: It’s easier to make a budget by using apps. Install a budgeting app in your cell phone or laptop and use it regularly. The plan of your monthly income and expense will be inserted in this app.

Refinance Your Mortgage: If you have a mortgage, do you know the current interest rate—the rate of mortgage changes from time to time. Given the current interest rate environment, you can easily shop around to get a lower interest rate and refinance your home loan. If you have a fixed-rate mortgage, you can switch to a variable interest rate loan. A mortgage broker can help to secure a lower rate. Doing this practice alone can save you $500-$1000 a year.

Conclusion: Saving money starts with your thinking. If you don’t change your thinking or spending behaviour, you will not see any saving.

Just go through the lists of ideas above again and again. If one idea hit you, then act immediately.

Apply 10 second rule or 24 hours rule or 30-day rule, you will see the magic that your buying interest is fading away.

This saving habit has a compounding effect. If you can save one dollar today, you can save a $1,000 after year-end. Who knows, it might be more than that.

I have saved $100,000 in three years of conscious effort. So, it definitely works.

Let me know what your biggest struggle in terms of saving money is.