As we all know, the secret to a successful life stems from financial security.
Being able to go to sleep at night free from worries about money.
However, while this short post won’t tell you how to budget your money or cut back on spending, it will reveal to you seven unconventional ways to save money!
These are strategies you can implement without noticing a whole lot of change, and that can really impact your finances.
If you use them correctly, they can really make those sleepless nights a whole lot less recurrent.
When you carry them out regularly, you could create massive financial savings without taking a direct hit to your quality of life while doing so.
It’s not about the money we make, it’s about the money we keep.
There are many different books on the topic out there and almost all of them discusses the exact same concept.
They are all teaching one very simple concept how to turn income into wealth.
Without a doubt this concept is mentioned in every single book on the topic of money.
Many people like to say they don’t make enough money, but they don’t realize that’s only the half of the problem.
Income is exactly that – money coming in, but that doesn’t necessarily mean that’s the money you’re keeping.
Most people don’t make it into the positive cash flow.
This could potentially be because of too much spending, or result of paying off debt of prior spending.
The ‘secret’ to actually getting more financially independent is to create wealth through savings.
It’s not about the money that you make, it’s about the money that you actually keep and what you do with it.
The very first thing you have to pay is your taxes.
Really not much you can do about this (legally at least). So, just from start you lose 1/3 of your income to taxes.
The amount that’s left to you is post tax amount income with which you have to pay your costs – payment for house, or a car, electricity, food, etc.
Maybe you’re in situation where you’re in debt, because in one point you didn’t have enough money and as a result you’ve borrowed money from the bank.
The trick is that if you don’t get in the positive cash flow, there is no way for you to ever achieve wealth, because you have no savings.
Creating wealth comes down to savings.
If you don’t have positive cash flow you don’t have any savings.
And if you don’t have any savings you cannot create wealth for yourself by investing in assets.
If you’re in that situation there is nothing you can really do, so you’ll have to work backwards and figure out what is that you can control.
But first of all let me explain how you can create more wealth for yourself.
You take positive cash flow, you put some into savings and you buy assest with the rest of the money.
The reason why you put money into savings, is to avoid going into debt.
You build what is called an emergency fund which is going to be used for any unexpected expenses – it could be a medical bill, car repair, who knows what it is, but you’re going to pay that from your emergency fund, and you’re going to invest the rest into assets.
What assests do you invest in?
Whatever it is that you decide, as long as these assets are appreciating in value over longer period of time.
This is the only way to create wealth.
How to Save Money Fast
If you’re in a situation where you don’t have a positive cashflow, there are a few things you can do.
The Qapital app is a game changer, honestly.
For the purposes of full disclosure, we’re not affiliated with them, it’s just an app that will really help you with your finances.
With it, you can set up rules that automatically sense when you’ve spent money, and will round up to the nearest dollar.
All this change that you add to your account adds up over time.
It might sound crazy, but it’s like taking those copper coins and throwing them into the bank automatically!
That will enable you to save a couple hundred dollars without too much work.
When you make it automatic, you take out the emotional side of saving money, which can make you feel like you’re taking something away from yourself.
It’s a huge lifesaver, and it’s free to boot.
If you would prefer to look at other options, then another fine alternative to Qapital is Digit.
Choose the one that you think is best.
You should find that both do a good job of helping you to become a bit more savings-conscious, however.
Pay yourself first
This comes from the book “The Richest Man in Babylon” that all the grandpas are talking about.
It’s a good book, but the main idea from it is if you pay everyone else and you pay yourself last, you’re never going to be able to achieve financial independence.
You have to pay yourself first; it really is as simple as that.
So, starting from today, let’s take on some Babylonian economics.
Start by saving between 5% – 10% of everything you earn (depending on how much you can afford – even 3% is a good starting point, building up as you go).
You have to automate this process, and don’t touch that money.
You can find numerous ways to set up automated account management via online banking.
What other solutions exist to help improve your financial usage, though?
Don’t keep your money in one spot
What you have to do is create different accounts for different goals.
Have one account for your salary, one account for your expenses, and have another one just for investing money (invest in cryptocurrencies, real estate, etc.,) and one for savings.
Bottom line: keep your money in separate accounts for separate goals.
When it’s all separate, you will find it easier to limit spending.
Focus on big wins
Learn how to negotiate your salary or how to get a raise. That’s a win.
It sounds scary, but negotiating what you’re actually worth shouldn’t be such a daunting process.
Use negotiation as often as you can.
For example, if you’ll need a loan that you’ll have for the next 5 years, negotiate on what kind of rate you’re getting on it.
If you’re in debt, focus on how to get out of it.
Learn how to create an automated side business that will provide additional income in the long run, so you can become financially independent.
Focus on those big wins, like when you buy a car or a house. Go all in on that!
This is a much better strategy then depriving yourself of something that costs $2 because you want to save some money.
The big wins can make the biggest difference to mood and confidence, so try and start big and build from there.
Find things that bring you joy and only have those around you.
Often, we convince ourselves that expensive material goods are worth all of the debt, financial disparity and strife.
When you’re able to get rid of all the clutter and the stuff you don’t need, you end up buying less.
A good way to save money is to get rid of the stuff you already have and sell it on eBay.
You don’t even have to sell it; give it away.
It can be quite liberating on the soul to give someone to someone who needed your items more than you did.
You will be surprised by how little you need to have a good time and live life with a smile!
Finances are a skill, and you have to develop numerical literacy so you can have things work for you, not against you.
Financial IQ is not something that you learn in school.
There is a lot of stuff that no one is going to teach you and that you have to teach yourself.
While the experience will come, these simple tips should help you to take things to the next level without excessive challenge.
You need to be proactive and educate yourself on how to become financially independent, just like with everything else.
Track your expenses and your income, and realise that if you spend more than you earn, you’re losing money.
Find ways to cut back and focus on big wins.
The big wins can build the financial and mental momentum that can push you to a whole new level of physical, mental and emotional stimulus.
If you spend less than you earn, keep doing what you’re doing – simple as that.
Once you learn the general rules of the game, you should find it easier to play to win.
Keep this in mind; the bigger the win, the better the result will be for yourself as time and life goes on.
. . .
Thanks for reading. If you enjoyed this article, feel free to share it and help others find it.