Easy Ways to Make Money by Spending Less
Do you want to know how to make extra money?
There are many ways to make extra money. You could get a part-time job, have a yard-sale, go back to school and get a higher paying job, or borrow money.
There is one very easy way to make money that many people overlook. It doesn’t cost you any extra money or time. In fact, in some cases it might save you time.
The Easiest Way to Make Money is by Spending Less
You may be thinking, “Why would I spend less? The reason why I want more money is to spend it!”
There are many reasons why you would want more money. Maybe you are saving up for a car or computer, or maybe you want to start saving for retirement. By spending less, you can get what you want.
How does this work? Simple. You buy the things you really want and not the things you don’t really care much for or need.
Let’s say you want to buy a computer that costs $1,500. You are only able to save $10 extra per month towards your computer. How can you afford the computer?
1. You could wait 150 months, or 12.5 years, until you have enough.
2. You could pay for it with a credit card and spend much more than $1,500 by paying a high interest rate on your card.
3. You could use a payment plan and also pay more on interest.
4. You could wait until someone buys the computer for you or until you win it as a prize.
5. You could not buy it at all and inconveniently use someone else’s.
None of these options sound very appealing. Most people will probably choose to use the credit card or payment plan. While most of these will get you the computer, there is a much easier way.
Stop spending money on what you don’t need and put it towards your computer.
If you have a budget you would be able to see where your money is going. If you are spending $12 on coffee every week, you could decide to make your own costing only about $2 a week. This would save you an extra $40 a month.
Instead of going out to eat twice a week, you could go out once a month and maybe save about $120.
Do you buy all the expensive name-brand food when food shopping? You could by store-brand and save maybe an extra $50 a month.
Do you have kids that constantly bug you for cash causing you to shell out $20 a week? Tell them to get a job and make their own money while simultaneously saving an extra $80 a month.
Are you always late for work and other commitments causing you to speed to get their? Leave with plenty of time so you can drive slower and more cautiously. You would have another double benefit of not breaking the law and saving on gas. That could save you a few dollars a week or $20 a month.
Do you blast the air conditioner in the summer, bake with the heat in the winter, and leave every light on in the house? Buy energy saving light bulbs and appliances, turn off what you aren’t using, open the windows in the summer on cooler days, and wear a sweater in the winter. You could save another $20 a month.
Do you spend over $100 a month on television for hundreds or even thousands of channels and only watch a few of them? Cut back your bill and save $60 a month.
Of course, how much you save won’t equal exactly this, but you get the picture. Who knows, you might be able to save even more! Only spend money on what you really want and need. All these savings in addition to the $10 a month will save you $400 a month.
If you are saving $400 a month, you will be able to afford that computer in less than 4 months.
Saving to buy a computer is just one example. You should also start saving more so you can complete your financial goals such as building an emergency fund, buying a house, and starting a retirement fund.
Be Careful with Credit Cards
Using credit cards could be costing you a lot of money as well. If you charge everything to your card and only pay the minimum payment, even the highest cash back percentage won’t balance out the very high interest payments you’ll be paying.
You probably know at least one person that is in credit card debt whether they tell you or not. It might even be you! Don’t let credit cards ruin your credit score or kill your financial goals.
If you really want some easy ways to make money, you should start and keep a budget, spend money only on what you need, and save and invest whatever you can.