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How to Better Save Money -- Seven Great Ways That Work

Updated on February 5, 2015
Man budgeting his money
Man budgeting his money | Source
Money Management Lesson
Money Management Lesson | Source

The wise man says "It's not how much you make, but how much you save that's going to determine your financial success in this life." I know times are very tough, but you have to try your best to find different ways to save! If you are struggling to make ends meet with your current monthly(4wkly or 2bi-wkly) salary, can you imagine when you are retired, do you think you will be able to live off your fixed monthly pension, which is going to be just a fraction of your current monthly salary?

Believe me, I know that the average American is having a rather hard time saving in these tough times we are currently experiencing. However, with a little suggestion, maybe they could come to realize that they aren't doing the things that are needed to be done in order to have a little leftover for rainy days.

Realizing that many people don't know how to save, I have decided to use this hub just to share 7 tips on ways to save.

1.The first thing to remember, is that you know exactly how much money you have been making on a monthly basis. However, if you tend to spend more than your net income, this is certainly not a good situation for you, because essentially, what you might be unconsciously doing, is using your credit card or borrowing money for this extra spending. This will only cause you to create more debts! This is why it's important for you create a simple budget so that you can keep track of your monthly spending.

2.Write down how much is being spent on mortgage or rent, utilities, food, debts, gas or transportation, entertainment and so on. In this way, you can see exactly where your money is going. This can help you to decide where to make cuts, keep spending under control or find extra cash to save.

3.Determine how much of this extra cash you can comfortably save each month. Put aside a few spare dollars into your saving account or a retirement plan, like a 401k. You can have this deducted from your pay, pretax (i.e. this amount will be tax free). Many people continue to fail, simply because they aim too high. It's better to start off with a small amount and then stick with this manageable amount religiously.

4.Tell yourself that you will never spend a dime until after you have paid yourself first ( i.e. after putting your monthly savings aside). Remember, with the exception of emergencies and basic necessities, of course, there is absolutely no expenditure that is more important than savings.

5.Don't procrastinate, start now. If you don't have a saving plan in place, the sooner you begin one the better.

6.Don't confuse savings with investments. Be sure to maintain a clear separation between the two:

While investments inevitably expose your capital to some degree of risk, savings are designed to protect your capital. Investments can be in the form of stocks, stock mutual funds, or real estate, which can rise or fall in value. Savings should be limited to vehicles that rarely, if ever experience a reduction in value. The return of your money is prioritize over the return on your money.

With investments, it often makes sense to time the market. Contrarily, with savings, it doesn't, although key strategic changes may be required to adapt to a major cyclical or historical change in the economy, such as a recession or a major economic downturn.

7.You can have your pay directly deposited into your bank account(through your employer's direct deposit or with a recurring transfer with your bank), if you are not discipline enough to curtail your spending habits, once you have hard cash in your hands. Presently, with interest rates being so low, it seems as if most banks are charging more for fees than what they are offering for interests on savings.

For this reason, I think it's better to join a credit union and have your salary directly deposited into your account. Most credit unions are offering a better deal when it comes to interest on savings, especially when it comes to money-market accounts, and certificates of deposits(CDs). Also, you don't have to worry about Credit Unions investing your money on Wall Street, because they don't. In fact, they are nonprofit companies.

Although I have provided you with a few tips on ways to save, you should also do your own research. Before you join any credit union for example, please make sure you compare the current interest rates and saving vehicles of your current bank with those of any credit union you might be interested in joining. To find a credit union nearby, you can go to

Copyright (C) I. Mcfarlane 20012


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      mackyi 4 years ago

      Thanks for stopping by pstraubie48. I am also grateful for your input. The problem is that, most of us don't even realize how time flies!

    • pstraubie48 profile image

      Patricia Scott 4 years ago from sunny Florida

      Absolutely...plan now, save of your very best tips is do not procrastinate. It is so easy to say, next week or next month.

      I am retired and am so thankful that I have saved. I am not rolling in money by any means but I am able to enjoy my retirement.

      Saving in early years will be something anyone is happy they have done.Thanks for sharing. Angels are on the way ps

    • mackyi profile image

      I.W. McFarlane 6 years ago from Philadelphia

      Yes alocsin,you're right, many people do the opposite -- pay everyone first. As a result, they ended up getting no pay.

    • alocsin profile image

      alocsin 6 years ago from Orange County, CA

      I think a lot of people forego step 1, so trying to save becomes a lot harder. Voting this Up and Useful.

    • mackyi profile image

      I.W. McFarlane 6 years ago from Philadelphia

      Thanks for agreeing with what I have to say about saving on a regular basis Garcie! Many people believe that a retirement pension is going to be enough to take care of medical and other personal needs, but I often tell them to think this over! All that you have shared here really reinforced the message I am trying to convey. Thanks for sharing. It's really a tough situation, when you fall short of your aims and objectives!

    • mackyi profile image

      I.W. McFarlane 6 years ago from Philadelphia

      Hobbitinspiration: Thanks for sharing this additional tip on saving. Actually, a few friends of mine have now decided to take this same approach "Use cash to pay for things." Previously, they were writing checks to pay for everything, but after bouncing a few checks, they have sworn they will no longer use checks.

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      Kieran Gracie 6 years ago

      Yes, I totally agree with you that saving on a regular basis should be everyone's absolute priority. Now that I am retired and trying to live off a (very small) pension I wish that I had saved more when I was earning a good living. But, at the time, a big mortgage seemed a good idea because - surely - the value of property would rise and easily pay off that mortgage without any problem? As we all know now, past performance is no guarantee of future returns....

    • hobbitinspiration profile image

      hobbitinspiration 6 years ago from Monmouth, OR

      I like this information! One thing that really helps me is to use cash to pay for things. I know it's a little extra work but it helps me to keep spending in check. Especially when you spend money on little things that add up like coffee and snacks.