Learning save money methods is an important part in creating a plan that leads to financial freedomFinancial freedom is a term that usually means one has enough financial resources to retire early. One can then live the lifestyle they desire, and are not limited by a set salary each year. More.
Sure, the eventual goal is create more income, but we can start by utilizing our savings to generate that income.
This is especially true for us entrepreneurs in the beginning of our journey to financial independence.
As we are just beginning our journey we need to focus on trimming the fatTrimming the fat is phrase that means that we should optimize our business to be more profitable and efficient by getting rid of any unnecessary waste. More where we can and re-investing the money we save back into our business or other income producing investments.
Keep reading below for some save money methods.
Altering our perspective
A major part of making a plan to create generational wealthGenerational wealth is wealth that is passed down through generations from grandparents and parents to children. This is usually done in the form of cash, property, investments, stocks and bonds, and companies. More is to forgo the temporary luxuries now so that we can we can later have those luxuries forever.
Of course we should not deprive ourselves of the things that we need, but perhaps we need to re-examine and redefine what we consider necessities.
Believe me it is easy for anyone to fall into the cycle of consumerism in order to keep up with all the new and exciting trends.
Every few months there is a new version of a smart phone released or any other ‘must have’ gadget at the moment.
Saving money in our everyday lives
The first thing we have to do is ask ourselves which purchases are completely necessary.
Let’s take the example of the latest model of our favorite smartphone since I mentioned it earlier.
Here are a few questions we can ask ourselves?
-Do we have to have the latest smartphone?
-Is our current model working?
-Will this purchase increase my well-being or productivity?
-Am I buying this item to keep up with the latest trend?
There is no success without sacrifice
Let’s face it, if our goal is truly to create financial freedomFinancial freedom is a term that usually means one has enough financial resources to retire early. One can then live the lifestyle they desire, and are not limited by a set salary each year. More we are going to have to make some sacrifices in the beginning to get the ball rollingGet the ball rolling is a phrase that means to start something or to set an activity in motion. More.
We need to take a long, hard look at our current lifestyle and spending habits and see where we can trim the excesses.
One simple exercise to go through your day and examine how you spend your money and try and eliminate and make substitutions where you can.
Where can we save money?
-Do you buy coffee in the morning?
-Buy a lot of takeout or delivery?
-Have monthly subscriptions you’re not using?
Maybe you don’t have to have every music or tv streaming service and can downgrade to the free versions.
Go over the policy of your home/car insurance with customer service and maybe you can save some money there. Insurance policies often default to the highest coverage resulting in high premiums.
I put solar panels on my house and saved a significant amount monthly on my electricity.
Be creative. Leave no stone unturned.
Call your cellphone and internet provider and ask for a discount.
Understand the power of simply asking for a discount.
More times than not, just by simply asking for a discount anywhere you go, you will get one.
Try it for yourself and see.
Now that we have whittled downTo whittle down means to make something smaller. More our spending to the bare essentials, we can focus on the next step which is saving money on everything we spend.
How to save even more money
In order to this we should utilize money saving apps. and browser plug-ins such as Rakuten, Honey, CouponCabin, Ibotta etc.
These companies allow you save an extra percent on each purchase and will automatically give you any current coupons, sales, or discounts so you can save even more on your purchases.
You can even refer your friends and family for more savings.
But wait there’s more..
In conjunction with those savings programs you can charge all your purchases on a rewards credit card to get even more savings, sometimes as much as 5% or more.
Next, instead of cashing out credit cards rewards for gift cards or vacations, use those rewards as statement credits to help pay off the credit card bill and keep the cycle going.
This way you are continuously getting rewards and savings on everything you buy.
Sign up for a new cash back credit card and get a bonus as well. Refer friends and receive bonuses.
Are you sensing a theme here?
We are putting our money to maximum use in our favor.
Now we can take all the money we save and invest into a business venture, the stock market or paying off our mortgage.
Notice I said invest.
The goal is to put these savings to work for us in order to create a continuous positive money momentum.
Say that 3 times quickly.
How to save more money in our business
Even with our business, if we get more creative we can increase our bottom lineThe bottom line is a business term that refers to the final total of a balance sheet. More.
Some ways I have been able to that is by increasing my competency in certain areas and utilizing free tools.
For example, instead of hiring a graphic designer for all design work, I’m able to use a free tool like Canva to design certain things myself.
Instead of paying for a keyword research tool to analyze keywords and search terms I use Ubersuggest.
Instead of hiring employees to execute tasks, in the past I have used platforms such as Acadium to obtain interns who want work in exchange for experience.
And of course I purchase as many business items and supplies as I can on my rewards credit card.
You can even receive additional rewards or a bonus when you open a business checking account.
Utilize as many resources as possible to compound your savings.
Now that we got the savings part sorted, we can focus on earning more income.
