How I Save Money on Nearly Everything

This post is part of the TaxACT How I Save blog tour which teaches you ways to keep more money in your pocket. Last year, TaxACT saved America over $240 million on tax preparation. How much can you save? To learn more about tips and strategies on saving, click here.

If you are anything like me, one of your goals for this year is to save more money. Saving money can help you get off the debt roller coaster and cushion your finances when an emergency occurs. Not only that, but saving money means more possibilities — things like quitting your job, traveling the world, and saving for your first house.

But let’s face it: saving can seem like a chore. Spending is often seen as the sexier, more fun option. However, there are easy ways to save money on just about everything.

Saving, like anything that you want to master in life, requires persistence and practice. Saving money will stop being something that you force yourself to do, and will become a lifestyle.

For me, I had to learn early on how to save money. As a perennial nonprofit worker turned freelancer who also happens to be fighting off the beast of student loan debt, saving money was always part of my lifestyle — especially because I didn’t have a credit card until I was 28, so I relied solely on the money I had.

Here is how I save on nearly everything:

Housing

Housing costs can often eat up a large chunk of your budget. When I lived in LA and NYC, I could feel it with my rent costs inching up to 50% of my income. I now live in an area with a lower cost of living in a modest studio apartment with my partner. As we have gotten older, we have said “no” to lifestyle inflation. While many of our friends are buying houses and enjoying large 2 and 3 bedroom apartments, we are content with our small, yet cozy space. We save thousands of dollars each year by choosing to live in a modest space.

I know living in such a small space won’t work for everyone, but here are some tips to save on housing:

• Ask yourself, what do you really need space wise? Can you afford to downsize?
• Consider moving to a lower cost of living area
• If you are in a larger city, consider a cheaper neighborhood or living with roommates
• Live close to work

Food & Drink

This year, I plan on saving more money than ever by eating at home more and drinking less. Eating at restaurants is my Achilles’ heel, but eating and drinking out is just so expensive. I am looking up cheap recipes on Pinterest, doing more meal planning, and buying mostly fresh produce and beans in bulk. We don’t eat much meat, which also helps the bottom line.

If we do go out, it is often with some sort of coupon or for happy hour. Also, we like to have a rule that we either go out to eat, or go out for drinks, but not both. We’ve learned that doing both can quickly lead to a hefty bill.

To save money on food and drink:

• Buy in bulk
• Meal plan
• Cook at home
• Only go out for happy hour or with a coupon

Transportation

Ever since leaving LA, I have been carless, and it’s been fabulous. Between insurance, gas, repairs, and potential car payment, cars are money-hungry beasts. I am saving thousands of dollars per year opting to bike, walk, and take public transportation everywhere.

If going carless is not an option for you, consider being a one-car household, or commit to taking public transportation a few days per week. Buy used, instead of new and use sites like GasBuddy to find cheap gas in your area.

To save money on transportation:

• Go carless
• Take public transportation
• Walk or bike if possible
• Carpool
• Become a one-car family
• Buy used instead of new
• Compare prices on insurance

Entertainment

Because I am in serious debt pay off mode, my entertainment budget is abysmally small. As much as I’d love to go to more concerts, more movies, and see more live art, it’s a luxury I often can’t afford.

But I still do manage to have fun and get my fill of culture on the cheap. I save money on entertainment by:

• Going to museums on ‘pay what you can’ days
• Attending my local art walk
• Using Netflix over cable
• Attending free movie screenings
• Volunteering to be an usher to see a live show

Business

Now that I’m a full-time solopreneur, I’m always looking for ways to save money. This means that when possible, I prefer checks over PayPal, or even better, direct deposit. I know PayPal fees are the cost of doing business, but it doesn’t hurt to ask your client if they offer another method of payment.

In addition, I make sure to keep track of business expenses, like computer repairs, so I can deduct them from my taxes. After all, you want to save as much money as possible on your taxes, so be sure to keep your receipts and stay organized with your finances!

How I Do It

After saving so much money in all aspects of my life, I make sure to pocket that money and not go out and spend it. Remember, it’s not how much money you make, but how much you keep. I am a firm believer in targeted savings accounts, which can align with your financial goals.

Personally, I automate my savings so that money is deducted from my checking account each month to fund my goals. That way I don’t have to think about it and there are no excuses. I use targeted savings accounts to fund all my short, medium, and long-term goals such as my emergency fund, travel, taxes, and retirement. This way, I know exactly what that money is for.

As you can see, saving money doesn’t have to be hard or even painful. You can still live an awesome life AND save money. Start by saving as much as you can (10-50%+ of your income) and choose to spend on your values, while cutting out the rest.

Use these tips to start saving today so that you can rock your goals this year. If you want to save even more money by saving on your taxes, enter to win a free copy of TaxACT below:

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How will you save money this year?

Photo credit: http://deathtothestockphoto.com

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Melanie

Melanie Lockert is the founder of the blog and author of the book, Dear Debt. Through her blog, she chronicled her journey out of $81,000 in student loan debt. She is also the co-founder of the Lola Retreat, which helps bold women face their fears, own their dreams and figure out a plan to be in control of their finances. She is passionate about empowering women, helping others get out of debt, and focuses on the intersection of debt and mental health. Every September she organizes a Suicide Prevention Awareness Blog Tour, to help share resources for those struggling with debt and suicide. In addition to her love of personal finance, art and music, she is also a karaoke master and a cat mom to Miles and Thelonious.

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