Unlock Awesome Financial Potential Part 1: Smart Saving and Frugal Spending Essentials

Disclaimer: The information provided in this article is for general informational purposes only and is not intended as financial, investment, or professional advice. While the tips shared aim to help readers improve their savings strategies and financial potential, individual results may vary depending on personal circumstances. Readers should seek guidance from a qualified financial advisor, accountant, or other professional before making any significant financial decisions. The author and publisher of this article do not accept any responsibility for any financial decisions, actions, or losses that may result from following the advice or suggestions presented here. All opinions expressed are based on personal experiences and general best practices, and are not guaranteed to produce specific financial outcomes.

At the heart of any conversation about money you will be pressed to find anything that doesn’t start with a conversation about budgeting.  While that is true, there are other tips and tools you should have in your tool bag of essentials to help you along the journey.

Many of these you may have heard but if you want to really master saving and spending you will need to incorporate some of these into your lifestyle.  You’d be hard pressed to find someone who’s mastered their finances without some of these essential tips.

Create a Budget

Start by tracking your income and expenses to understand where your money is going. Then, create a budget that allocates funds for essential expenses, savings, and discretionary spending.

To get started, you’ll need to know what your bills are. 

Looking to track or spreadsheet your income and expenses? There’s not a one size fits all solution as circumstances may determine the way you decide to design a budget. 

You may decide to incorporate a variety of factors for tracking like:

• Tracking category specific expenses (groceries, utilities, car payment, etc.)
• Tracking Income
• Tracking every single dollar coming and going
• Paying yourself first (incorporating this as part of the budget)
• Adding goals and using savings towards reaching them as part of the budget incentive
• Automated transfers (to savings and investments)
• Including passive income (from investments)

Cut Unnecessary Expenses

In short, you will need to identify areas where you can trim costs , such as:

• Dining out less frequently
• Canceling unused subscriptions or memberships
• Reducing energy consumption
• Stop buying unnecessary things (may be impulse purchases)
• If driving, consolidate trips to save gas
• Reducing water bills

If you begin struggling with where to cut, test yourself.  See if you can do without that “thing” this month, week, today, or however long it takes for you to really know if you can do it.

If you compile your last 12 months of spending you can start to see some opportunity here likely.

For example, instead of spending $200 at the grocery store, see if you can find enough foods, variety, etc. to spend only say $150.  This may even include shopping at a different store.  Ping pong around ideas for each item and ways you may be able to reduce your spending.

While you may not want to cut out a specific splurge, you may find the ability to reduce it and allocate that savings to a goal.

Comparison Shop / Smarter Shopping

Look for deals, discounts, and coupons when shopping for groceries, clothing, electronics, and other items.  If you remember, search for promo codes before you checkout.  Sometimes promo codes are on the company website, especially around times of year when big sales happen.

Compare prices and consider buying generic brands or purchasing items secondhand to save money.

Use comparable shopping apps to see if an item is cheaper in one place vs another.  Many companies offer free shipping if the item you are purchasing meets a certain threshold.  Within the same thought, however, don’t add additional things you don’t need just to get free shipping unless it really is worth it and you’ll use the item anyways.

Meal Planning and Cooking at Home

Plan your meals in advance, make a grocery list, and cook at home as much as possible. Eating out can be expensive, so preparing meals at home can save you a significant amount of money over time.

Along the same thought, try to eat before you go out in the world for a long period of time.  You’ll eventually end up hungry and eating somewhere because it is convenient.

Use Public Transportation, Carpool, or Other Low Cost Means

If feasible, use public transportation, carpool with others, or bike instead of driving to save money on gas, parking, and vehicle maintenance costs.  Each method of transportation can have different costs in way of time, potential hazards, or situations that may not be ideal for your personality.  Weigh each of the options and test out ones that appeal to you.  Here’s a few ideas:

Scooters

Another option in-between may be a scooter or form of getting around that doesn’t necessarily require exercise to propel it forward.  While there are manual kick scooters that you push yourself, there are also electric.  These electric scooters can have ranges from 15 to 30 mph and sure beats walking!

Ride-Sharing Services

It is worth the research to determine if there is any benefit to using a ride service.  You may knock this one off the list easily or realize that in comparison to the monthly or yearly cost of a car it makes some sense.  

Skateboard

Call it old fashioned but it’s still a way to get around that is faster than walking.  Granted, this also requires the correct type of surface to ride. 

Trikke

These three wheeled scooter-like devices can make for a fun and invigorating commute.  These do require the proper terrain to get around and the confidence you can safely get from point A to point B. 

There are different variations that come in manual and electric.  Manual will rely on the operator to lean left to right to propel the trikke forward.  Electric versions exist for various reasons but can also be a way of commute for those not wanting a physical element to the ride.

Helpful Tips for Unconventional Ways to Get Around

However you choose to get around these tips may be helpful in deciding if any of these will work for you:

• Ensure you bring any necessary safety gear
• Check the condition of your method of transport (ensure good working condition)
• Plan your route ahead of time by mapping or doing a test run of the route options
• Be aware of your surroundings
• Check the weather and prepare any necessary extra clothing
• Have a backup method of travel
• Plan where you will store or park once you have arrived
• Bring water or other means of hydration
• Obey any traffic laws

Reduce Utility Bills

Lower your utility bills by conserving energy and water when possible.

Here’s some ideas on ways to get started:

• Use energy-efficient appliances
• Adjust your thermostat
• Fix any leaks or inefficiencies in your home
• Hang dry your clothes instead of using the dryer
• Unplug any devices not in use
• Use LED bulbs
• Insulate your home
• Use weatherstripping where applicable to fill in space around doors and windows
• Regularly maintain your air conditioner
• Use natural light instead of turning lights on (open windows)
• Run a dishwasher and/or washer when the loads are full as opposed to partial loads
• Turn off lights when not in use

Build an Emergency Fund

Ah one of the staples to financial security.  The ole emergency fund.

Why?  For when the unexpected happens.  Sometimes a necessity such as a car or air conditioner can stop working or need repair.  When there’s no money to fix the unexpected, many resort to credit cards or other means that may not be the best recipe for their financial future.

Setting aside money in an emergency fund gives you that extra back up plan to not leave yourself feeling stressed and losing sleep.   The goal or common recommendation mentioned by many is to aim for three to six months of expenses to accumulate for an emergency fund, however…

What about a goal of something like “whatever the number is so your mind can rest and you can sleep well at night.” Sleep is important and sometimes an extra $50 or $100 savings is what gives your mind the ability to rest for a day, a week, etc. 

Whether you’re well beyond three to six months of expenses, below that threshold, or right there set a goal for yourself and work towards it no matter how small.  Once that is achieved, set the next one!

Automate Savings

Once you know you have a set amount that can be saved, setting up automatic transfers from the account where your pay goes to a savings account each month to help put this into practice.  Paying yourself first by prioritizing savings before spending money on non-essential items can help one visualize the goal being met.

To make this resonate more, you can opt to literally take cash in hand and deposit it in your savings.  So many things are automated now that the emotion of money becomes less (from not physically handling money as much.)

Avoid Debt

Try to avoid taking on high-interest debt whenever possible. Pay off credit card balances in full each month if using them.  In order to avoid interest charges only borrow money for essential purchases or investments with a clear return.

Here are some other useful ideas to help in avoiding debt:

• Plan for future expenses
• Continue learning ways to keep yourself out of debt
• If you typically ask or get presents for a birthday or holiday ask for cash or gift cards instead.
• Avoid impulse shopping
• Bring only cash that you can afford to spend with you
• Learn how interest rates, borrowing, and loans work
• Research purchases before spending (this may actually convince you not to get it)
• Read negative product reviews (What don’t people love about it?) to prepare for the possible downsides of a purchase
• When getting invited to do something you cannot afford, say no to the invite.
• For continuing education, learn about debt in terms of student loans and research ways to avoid it

Invest in Yourself Wisely

No matter what the investment is, try doing it wisely.

• Learn about investment types, retirement accounts, and other ways to build your wealth.
• Learn the power of compound interest and how time and patience factor into the equation.
• Invest in yourself responsibly (continuing education, free learning, certifications)
• Read, read, read
• Work to keep your body and mind healthy

Review and Adjust Regularly

Periodically review your finances and adjust your budget and saving strategies as needed. Life circumstances and financial goals may change over time, so it’s essential to adapt your approach accordingly.