Have you ever wondered how financial experts save so much money? Do you want to know why they have well stocked emergency funds? And, why are they so much better at saving for retirement?
Well, the truth may surprise you.
Contrary to popular belief, saving money is not all about buying the right stocks or reading the most financial news. That’s definitely a part of it, but you don’t need to have an MBA to implement the tips and tricks that we’re about to share below. They include very simple techniques that anyone, regardless of skill level, can implement. All you need is a little bit of knowledge and the motivation to improve your financial situation.
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1They Challenge Themselves
Personal finance experts often engage in challenges to see just how much money they can save in a given month. This could include taking cold showers every day for a month, giving up Starbucks altogether, canceling their cable, or selling 1,000 items they no longer want. The trick is to make it a fun competition and get your family involved. This makes saving money an engaging activity instead of a dull one. To take it a step further, let your friends and family know about your monthly challenges. They can keep you accountable and encourage you when you feel like giving up.
2They Read The Fine Print
Financial experts always read the fine print. Whether it’s a credit card offer or a rental agreement, they question everything. If you fail to read the fine print on a contract, you could lose hundreds if not thousands of dollars on a deal. Remember that even the most common contracts, like cell phone contracts, often have clauses that are very difficult to get out of. When all else fails, show your contracts to someone you trust or take them to an attorney to get the best advice. It’s worth the upfront cost for expert advice if it saves you money in the long run.
3They Save Up Their Points
Financial experts know exactly how to use credit cards, gas cards, and hotel points to their advantage. They don’t fall prey to offers that cause them to spend more than they usually would. Instead, they shop for cards and deals that work well with their current spending habits to avoid purchasing items they don’t need. Often, they will cancel cards before they have to pay annual fees, and they will keep track of their points in a spreadsheet to avoid having them expire.
4They Don’t Have Brand Loyalty
When it comes to airlines, restaurants, sneakers, and even razors, forget brand loyalty. The best way to save money is to go with whatever product is on sale at the time. The best way to find out which product is on sale is to look at advertisements in your Sunday paper or online. This applies not only to household items but to your cell phone and cable companies as well. Sure, it might be a hassle to switch providers, but if it saves you a few hundred dollars a year, it’s worth it.
5They Kick It Old School
While financial experts love technology, especially when it comes to accounting, they still know how to appreciate the free things in life. This includes renting books from the library, taking a walk around the park, having a picnic, and looking up RedBox codes to score a free movie. They know there’s nothing wrong with enjoying the free things in life, and they use it to their full advantage.
6They Drive Old Cars
Even though many people in the financial industry earn great annual salaries, many of them prefer to purchase cars that are at least one year old. According to an infographic on debtconsolidation.com, they know that cars depreciate as soon as you drive them off the lot, so why purchase new when you could save thousands of dollars? Plus, it’s very hard to tell a new car from one that’s one year old, especially once it has been cleaned up by a dealership!
7They Make Their Kids Pay for College
With the rising costs of college, many parents will be unable to afford to send their children to school. Even those who are well off are deciding to save their money for their own retirement rather than pay for their children’s education. Having your kids pay for their own college will make them appreciate their education more. Of course, it’s imperative that you teach them about the value of money so that they don’t take out more loans than they actually need.
8They Don’t Go On Fancy Vacations
Even though most people would love to go on a fancy vacation, expert savers know that vacations are meant for relaxation. It doesn’t take a $10,000 investment to have a good time nor does it take a first class plane ticket to a faraway destination. Instead, those who are money conscious often stay close to home during their time off and enjoy the sites that their cities have to offer.
9They Save First
The best trick that financial experts utilize is saving money as soon as they get their paychecks. They know that if they wait until the end of the month to save, they might not have any money left! Instead, they will set aside a certain amount at the beginning of the month and adjust their spending accordingly.
10They’re Not Afraid To Ask
Is this on sale? Do you offer a senior discount? If I pay in cash will you lower the price? These are all examples of questions that financially savvy people aren’t afraid to ask. Sure, you might get told no, but you’d be surprised at how often you’ll get told yes! Just ask and see what happens.
Essentially, the main tactics that financial experts use to save money in their everyday lives are techniques that anyone can use. All you need is a little bit of practice and soon you can be saving money just like the experts!