Sounds too good to be true, right? Wrong! If you’re willing to make some temporary minor changes, you have the ability to save as much as you please. Whether you are saving for a trip or just want a little extra cash in your pocket, Bruce Sellery has brought us five genius ways to make that happen.
1. Advertise your motivation prominently
Who wants to cut spending? No one. It requires sacrifice and a change of habit, and that means we have to stay motivated. First you must figure out your “why.”
I want money in my pocket for:
- Retirement
- RESPs
- Emergency fund
- Vacation
To maintain your “why,” it’s crucial to take precautions so you don’t encounter any slips. Here’s what to do:
- Write down one word or a get a picture of something you want that requires more money than you can spend. Put it on your fridge, on your phone, or anywhere that it will be in sight. For example, if you are dying to travel to Australia, print out a picture and post it up for the world to see. This picture will be your motivation to keep saving until you can reach your goal.
- Talk to your friends and family about your plans to save. If you advertise that you are cutting back, you will be held accountable for your actions
2. Go “Cash Only”
Take your credit card and debit card out of your wallet immediately so you can reintroduce the pain of actually spending your money. Let’s face it, we are lazy. When spending is hard, we do less of it. By only using cash, you will have to plan ahead and make the effort to go to the bank and take out money—and who has time for that?! This will limit those impulse buys.
3. Renegotiate your phone and Internet packages
We get lazy about this too. Sometimes we don’t even know where our money is going—especially with our technologies. Even more, sometimes you will sign up for an expensive internet package that you aren’t using to its potential, and therefore wasting your hard-earned money. A major revamp is in order.
Here is the process:
- Analyze your usage of your cell phone, landline, cable, and internet.
- Research competitive pricing.
- Call your provider and ask for “retention.”
- Negotiate for a better deal.
4. Shop from your own cupboards
Buy only a little bit of bread, eggs, and milk, but mostly eat from your cupboards for as long as you can. Use up what’s in there (this means all those canned beans and rice packets that you always overlook). From here, you will be able to see what you actually use and what you don’t.
5. Cut out one spending category for 3 months
We have a limited amount of willpower, so there is no use going overboard right away. You can’t control yourself in every area all the time. So choose one category (like smoking, drinking, or clothes shopping) where you spending a lot of money (relatively speaking) and be ruthless about it for 3 months.
Good luck!
Courtesy of Bruce Sellery