Do you want to know how to be cheap? To save money, you need to reduce spending and make better financial decisions. Here are 5 ways to save.
Life can be expensive, to say the least.
Recent reports from CNN show that over half of all Americans spend their entire paychecks, with many people going into debt in the process.
But before you go broke, check out this quick guide to help you live a more comfortable, affordable lifestyle. Here are five tips on how to be cheap without sacrificing your quality of life.
- Track Your Spending
Before you can master the art of cheap living, you’ll first need to gain a better understanding of your spending habits.
Write out a list of monthly expenses and total everything up. If you can’t find specific information for your spending habits on things like groceries, do a rough estimate.
Now, compare this to your average monthly income and see how the two compare.
Aside from helping you understand where you’re spending too much money, listing your expenditures can help you determine where you can cut corners and save some extra cash.
- Ditch Cable
We love our reality TV as much as you do, but ditching the cable box is a great way to save some money. Within the past 11 years, cable bills have increased by 53% ballooning up to hundreds of dollars per year.
But that doesn’t mean you have to give up your favorite shows.
Consider signing up for a streaming service, instead. They’re a fraction of the cost while providing the same channels you know and love without any of the contracts or unnecessary fees.
- Make Your Money Work For You
It may seem strange that we’re suggesting one of the best ways to save money is to spend money, but making smart investments is a great way to get an additional source of income.
Check out a service like Investor Mint to get some great beginner tips on how you can make your money work for you. They’ll even help you find the best free trading platform so you can invest for less.
- Spend A Night In
Spending time with friends and family is so important, but it can also be a huge financial drain.
Instead of spending hundreds of dollars per month on entertainment and drinks, start hosting get-togethers at your house. You’ll still get to spend quality time with those you care about, but you won’t have to spend all sorts of unnecessary money in the process.
- Stick To Your Shopping List
We’ve all been there. You walk into the grocery store looking for two or three items.
Next thing you know, you blink and you’ve spent $50 on unnecessary groceries you’ll end up wasting. Before you head to the store, make a grocery list and promise yourself that you’ll stick with it.
Only focusing on what you need can help you avoid temptation when the siren song of the snack aisle calls.
Final Thoughts On How To Be Cheap
If you find yourself dreading that balance check from your bank, follow this guide on how to be cheap. You’ll still enjoy the same creature comforts as before, just in a more responsible way.
Be sure to check out the finance archives for more great info to help you take control of your money!