By Zulmai
Everything is getting ridiculously expensive right now—it’s insane out there! So I wanted to share some real-life tips that can save you thousands of dollars and totally shift your mindset about money. The truth is, the difference between people who are financially free and those living paycheck to paycheck often comes down to one thing: mindset.
1. Save money by adopting the right mindset.
It’s easy to think that money is just for buying things, but the key is seeing it as a tool to build wealth. I used to spend any extra cash I had without a second thought. But when I shifted my mindset, everything changed. Instead of asking, “What can I buy with this $1?” I started thinking, “How can I make this $1 grow?” This mindset shift helped me use every dollar I earned to invest in my future.
2. Get mad about paying interest.
I used to carry credit card debt and pay just enough to cover the interest, which meant I was stuck in a cycle. One day, I had enough. I decided to never pay interest again, and that was a game-changer. Paying off that debt became my mission. It wasn’t easy, but getting mad about paying interest pushed me to take action and get out of debt for good.
3. Pay yourself first.
When I was making $45 a day babysitting, it was hard to put any money aside. But I made a commitment to save, even if it was just $10. That $10 felt like a sacrifice at the time, but over the years, it grew. By paying myself first, I eventually saved $5,000, then $10,000, and built a year’s worth of living expenses. Prioritizing savings, no matter how small, is the key to financial success.
4. The Zero-Based Budget Revolution
Starting a zero-based budget can change how you manage money. It means every dollar is used for a specific expense or savings goal. This way, you know exactly where your money goes and can make better financial choices.
To set up a zero-based budget, first track your income and spending. This helps you see where you can save money. Key steps include:
- Setting a budget for each category based on what’s important to you
- Identifying your financial goals, like saving for a house or paying off debt
- Sorting your expenses into needs and wants
5. Start investing your savings.
Once you have a little savings, don’t just let it sit there. Start investing it. Investing doesn’t have to be intimidating! I started with Acorns, a great app for beginners that automatically invests your spare change. You can get started today with just $5—check it out here. Watching my money work for me was a game-changer.
6. Track your spending.
Tracking my spending was one of the best decisions I made. One of the best ways to get control of your finances is by tracking every dollar you spend. I personally use RocketMoney, which helps me stay on top of my budget and track my expenses automatically. By having visibility on where my money goes, I can make sure I stay on track. This app helped me realize I was wasting money on small purchases, and cutting back saved me hundreds each month.
7. Try living on cash.
I’ve tried living on cash before, and it helped me stick to my budget. When I gave myself a set amount for groceries, fun, and clothes each month, I found myself thinking twice before buying things. Once the cash was gone, I stopped spending. It was a simple but effective way to keep my finances in check.
8. Create a budget.
A budget is your financial roadmap. I used to be afraid of budgeting, but once I started tracking my income and expenses, I realized how powerful it is. Now, I set aside money for savings and necessities first, then allow myself a little wiggle room for fun. Having a clear budget ensures I’m not living paycheck to paycheck.
9. Meal plan.
One of my biggest expenses used to be food, especially dining out. So, I started meal planning. I’d spend time on Sunday creating a grocery list and planning out meals for the week. This simple habit saved me hundreds each month. It’s a bit of effort upfront, but it pays off in savings and helps me avoid last-minute takeout.
10. Eat from your freezer.
Whenever I find a good deal on meat or frozen veggies, I stock up and freeze them. That way, when I’m out of fresh groceries, I always have something to cook. It’s saved me from expensive grocery runs and last-minute restaurant trips. Freezing food helps avoid waste and keeps my budget under control.
11. Have meatless Mondays.
Meat can be expensive, so we started having meatless Mondays. A simple pasta dish with veggies or a hearty bean stew became our go-to. These meals are just as filling but a fraction of the price of a meat-based dish. It’s a small change, but it added up to significant savings over the course of a month.
12. Make your own snacks.
Instead of buying expensive snacks, I started making my own. I’d bake granola bars, make trail mix, or prep veggies for the week. Not only was it cheaper, but it was also healthier. I saved money, avoided impulse snack purchases, and even had fun experimenting with new recipes.
13. Evaluate your subscriptions.
A while ago, I took a look at all my subscriptions—gym memberships, streaming services, apps—and realized I was paying for things I wasn’t using. I canceled subscriptions that weren’t adding value to my life, saving me over $100 a month. It’s easy to forget about these small recurring charges, but once you add them up, they can make a big dent in your budget.
14. Negotiate with service providers.
One of the easiest ways to save money is by calling your service providers and negotiating lower rates. I did this with my internet and cell phone plan. I simply called, asked for a better deal, and to my surprise, they offered me a discount. It took only a few minutes but saved me over $200 a year.
15. Lower your electricity bill.
I started paying attention to our electricity usage, especially when it came to washing clothes. Washing in cold water instead of hot saved us money on energy bills. I also started turning off lights when I left rooms and unplugging appliances when they weren’t in use. These small habits cut our electricity bill by about 15%.
16. Wash clothes less often.
I used to wash clothes after every wear, but now I try to stretch it out. Jeans, jackets, and other items can be worn multiple times before needing a wash. This simple habit saves on water, energy, and detergent, plus it helps prolong the life of your clothes.
17. Fix things yourself.
Instead of calling a repairman, I learned how to fix small household issues myself. From fixing leaky faucets to repairing broken appliances, YouTube was my go-to for tutorials. It was challenging at first, but I saved hundreds on repairs. It’s amazing how much you can learn with a little patience and a good internet search.
18. Buy secondhand items.
When I was furnishing my apartment, I checked local thrift stores and online marketplaces first. I found a nearly new couch for a fraction of the price of a brand-new one. By opting for secondhand items, I saved thousands over the years. You’d be surprised what gems you can find! ThredUp is a game-changer for secondhand shopping. Not only can you find amazing deals, but you’re also making a positive impact on the environment. Click here to shop now.
19. Read finance books and listen to podcasts.
I used to know very little about money, but once I started educating myself, my financial situation began to improve. Books like Rich Dad Poor Dad and The Millionaire Next Door opened my eyes to how wealth is built. Podcasts and online resources also helped me stay motivated and keep learning.
20. Practice financial discipline.
Building wealth takes time and discipline. One of the hardest parts was resisting the urge to splurge on unnecessary things. But by staying focused on my long-term goals and practicing financial discipline, I was able to achieve milestones I never thought possible. It wasn’t always easy, but it was worth it.
