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20 Better Money Habits to Help You Increase Your Savings

20 Better Money Habits to Help You Increase Your Savings

Isn’t it frustrating to feel you can be saving more?

You have great intentions at the begging of each month–yet somehow you spend most of your money. Are others able to save more because they’re naturally gifted?

If you’re struggling to save money, you’re not alone. Data shows more than half of Americans aren’t able to cover a $1,000 expense.[1] Is the solution to be the average and continue saving little money?

Of course not.

You’re an action taker–someone who doesn’t settle for mediocrity. This is why you’re reading this article now.

The truth is saving money won’t be easy.You’ll have to break bad habits and learn new strategies. Most of them will be simple but will need a focus on discipline. If you’re done aimlessly spending your money, you’ve come to the right place.

But first, be clear of why you want to start saving.

Most people talk about retirement. Others save for a vacation trip. So, is there a right answer for what you should save for?

It depends.

Saving for retirement is a must, but once you’re tracking this goal, it’s time to get intentional. As you already know saving isn’t easy, and you’ll need to change your perspective if you hope to save more.

Grab a sheet of paper or use your smartphone to jot down what having more money will make you feel.

Will you be able to sleep better at night? Do you want to start a business but can’t go all in because of your current job? Do you want to feel great whenever someone talks about money?

Get intentional and think what having more money will bring to you. Use these reasons as your north start. The next time you’re tempted to spend money remember why you’re saving in the first place.

Then, start adopting better money habits. Go through this list and note which habits you’re weak and strong in:

1. Be Honest About Your Bad Habits

The most important habit you can learn is to face reality.

The reason why you haven’t been able to save for a long time is that you’ve delayed accepting the facts. I get it, it’s not easy to accept you’re not saving as much as you should. It’s easier to ignore this and spend the money you could be saving, hoping you’ll have enough left over.

Go ahead and admit to yourself you’ve been lying to yourself for some time now.

This isn’t to make yourself feel bad. Instead, be proud of yourself for being honest and show self-compassion. Now you’re aware you carry bad habits and it’s time to get to work.

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2. Recognize Your Money Mentality

When you hear “savings,” what comes to mind?

Do you get excited because you’re on track for retirement? Or, do you cringe knowing you have been spending your money poorly these past few weeks?

The truth is you’re not saving because of the stories you’re playing in your head. Set some time in your calendar to interview yourself.

Figure out what money stories you’ve been telling yourself and challenge them. For example, if you believe you should spend your money as it comes–ask how this has resulted in the last few years. Your goal is to challenge bad money stories to create better ones.

3. Define Your Needs and Wants

It’s okay to like expensive brands. The problem is trying to buy everything because you want to keep up with friends and family. As Paula Pant states “you can afford anything but not everything.” This is why you need to define what your needs and wants are.

Create a list of items you truly need. For example, cell phone, and food, house are needs. Then, create your list of wants for items such as high-end shoes, latest smartphone, etc.

You shouldn’t buy everything from your wants list immediately. Instead, pick one and create a budget for it. Save money first and reward yourself with an item from your “wants” list once you’ve reached a savings goal.

4. Understand Your Cash Flow Using Top Tools

You may believe you understand your cash flow (money coming and out of your account.)

You get paid twice per month and spend an approximated amount of your salary on expenses. The rest sits on the same bank account without a purpose. This is a recipe for disaster.

Instead, use money tracking apps to better track your cash flow. Sync up all your accounts and let Personal Capital do the rest.

5. Learn How to Set SMART goals

You already know that saving without intention doesn’t work.

But, stating you want to retire happy isn’t enough. You need to set SMART goals. Think of SMART goals as ones you can take action on and track.

For example, “I want to be rich” isn’t SMART. Neither is “I want to be a millionaire.” But, “I want to save $500,000 within the next 10 years” is SMART.

The purpose of creating SMART goals is to be able to track your progress. How else would you know if you’ve reached your saving goals? Review your current financial goals and make them SMART.

6. Use Tools to Track Your Expenses

If you can’t manage your money well, you’ll always spend it poorly.

Your goal should be to keep your expenses as low as possible while having a high income. The problem is you may not review your finances regularly. Because of this, you might be overpaying for your services.

Again, you can track expenses using a money tracking app, showing you the amount you spend each month.

7. Learn How to Negotiate Your Bills

Once you’re tracking your expenses, take it a step further.

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Odds are you may be overpaying for your services or pay for ones you don’t need. Negotiating your expense isn’t hard. I was able to reduce my cell phone bill $10 per month with a 5-minute phone call.

You can do the same. Saving money with your bills means you’ll have more money to save.

Organize your expense from the most expensive to the least. Then, start calling your most expensive service providers to negotiate your bills. If you fail to negotiate the first time, hang up and try again.

Most of your service providers will be big companies, so you’ll work with a different person each time. You also have the option to use services like Trim, who negotiate on your behalf. Regardless, don’t settle for what you’re paying now and negotiate your expenses.

8. Start Automatically Saving Instead

Stop trusting yourself to save money.

You’ve already seen where this has gotten you. But, don’t feel bad, we’re all human and prone to mistakes. Instead, create an automatic budget.

For example, have your money automatically transferred to different accounts. Take it a step further and open external savings accounts. This way you make it more challenging for you to withdraw your money.

Now when payday comes, your money is automatically saved.

9. Be Frugal with Your Money

It’s okay to use your money to buy things that make you happy.

But, if you’re not saving enough after cutting your expenses, you need to take a different approach. I’m against adopting frugality for the sake of doing so.

But, being frugal isn’t binary– there are different levels to frugality. If you’re having trouble saving look for areas where you can cut more. For example, instead of paying for Netflix, watch free videos on Youtube.

Repeat this process until there are no more areas left. Cutting services and being more frugal than you’re accustomed is only temporary. Once you’re able to save more, you can go back to the services you love.

10. Switch over to No Credit Card

Debt is often the reason most of us can’t save.

You may earn a decent income, but once you factor in your rent, car note, and credit cards, you’re left with little. T

he average credit card debt is around $16,000.[2] The best way to avoid credit card debt is to stop using it altogether.

Forget about earning points. Leave your credit card at home somewhere out of sight.

11. Review Your Financial Progress Daily

You need to review your finances daily

With money tracking apps, you’re able to do this with no problem. But, even if you don’t review your finances daily, create a reminder to check where you stand once per week or month.

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To encourage this habit, make reviewing your finances fun. For example, review them while eating your favorite food. Or, reward yourself with something small from your “wants” list. Once reviewing your finances becomes a habit, you’ll be in a better position to save more.

12. Shamelessly Use Coupons in All Places

You don’t use coupons only when you’re broke.

Get into the habit of using coupons to save as much money as possible. Don’t shop for your groceries and then search for coupons you can use. Instead, review the coupons available and buy the items on sale a given week.

Even if you’re able to save $5 per week, this is money you would’ve spent.

13. Pack Your Lunch to Save Money

A $10 meal doesn’t seem like a lot. It may even feel like a bargain depending on how good your food was. The problem is doing this 5 times per week, sometimes even twice per day. All a sudden, your $10 meals cost you $200+ per month.

Instead, make it a habit to pack your lunch to work. Pick one day during the week to meal prep for the entire week and watch your savings grow. Here’re some ideas for you: 25 Ideas for Delicious and Healthy Lunches You Can Take to Work

14. Leverage Tools to Cut Junk Mail

If you’re like most people, you check your email a few times per day.

Companies spend a lot of money to ensure you know about their latest sales. This will only make you want to spend more.

To avoid the temptation to spend, unsubscribe from most of these companies. Or, create a separate folder within your email provider that’s out of sight. Use services like unroll.me to easily unsubscribe from promotional emails.

15. Adopt the 30-Day Rule

Have you ever purchased something only to regret the sale a few days later?

If so, the 30-day rule is for you. Each time you’re going to make a new purchase, set it aside for 30 days. If after 30 days you still want to buy this item, do it. This won’t stop all bad purchases but it will cut the most irrational ones.

16. Work on Important Tasks, Not Everything

“How did it get so late so soon?” – Dr.Seuss

Time is the only resource you have that money can’t buy. This is why you need to protect it at all costs. If you’re honest with yourself, you’re not being productive with your time.

Watching useful Youtube videos or spending time with friends isn’t time wasted. The problem is doing only these.

If you’re already financially well off, then this isn’t a problem. But, if you’re looking to save more money you have to be productive with your time. How?

Like money, you have to track it. Use time tracking apps to get a clear idea of how you’re spending your time. Aim to spend some of your time managing your money better and searching for different ways to grow.

17. Be a Voracious Reader

One of the reasons you’re not saving enough money is because you don’t know the potential each dollar has.

For example, if you’d invested $1,000 in the stock market, it would double within 10 years. Many don’t know this and would rather put their money in a regular savings account.

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You don’t need to be a financial expert, but you need to understand money fundamentals. The best way to do this is by reading. Go to Amazon or your favorite book store and buy any book related to money. Here’re some recommendations for you: 19 Best Finance Books That The Richest People Read

Read and apply action on anything new you learn. Eventually, you’ll know more ways to put your money to work and choose to save more.

18. Get Educated on the Go

You can learn more from subject matter experts on podcasts. Find some of the top podcasts in business, money and other important areas.

Listen to them to and from your commute to work. Listen while you’re working out at the gym.

Little by little you’ll learn new things. And one day, you too will be a subject matter expert.

19. Choose to Invest in Yourself

You are your best investment. Why?

The more you know, the more you can apply. But, you can’t grow alone. Coaches are great to have because they can view your blind spots.

Yes, they cost money but can save you time in avoiding problems most people make. During your early stages as an entrepreneur or in your career, you may not be able to afford to hire a coach and this is okay. Read and listen to podcasts to grow. Or you can practice these 3 Valuable Ways to Invest in Yourself.

Eventually, your income will grow and you can use this money to invest in coaches.

20. Improve Your Money Skills to Grow Your Income

There’s a limit to how much money you can save but not how much money you can earn. This is why you need to start a side-business. The internet has made it possible to build a business on the side while working a full-time job. Choose to start a business in an industry you’re familiar with.

Will it be easy? No, but worth the effort. If you’re still clueless about where to start, here are some business ideas.

Bonus: Know What to Do with Your Saved Money

Once get traction with saving your money, you’ll need to put it work.

At the very least, ensure your money is getting a high APY (annual percentage yield.) Search online for “top savings accounts” to find banks offering competitive savings rates.

Next, open separate saving accounts for your different saving goals. And use money tracking apps to track your progress.

Final Thoughts

Saving money isn’t easy. Many of the habits you currently have are ones learned from childhood. So, to expect them to disappear in 30 days is unrealistic. Instead of trying to master all the habits covered here, start with one.

Then, start small with your first habit. It may seem to contradict to what you’ve done in the past, but this is most likely why you haven’t made progress. The reason you’d start small is to build a strong foundation.

Imagine building a house with cheap materials to support it. It wouldn’t be long before this house collapses. Trying to build fast habits is like using cheap materials to build a house.

The reason for starting small is to avoid triggering your amygdala’s fight-or-flight response. All this means is you’d be less likely to feel stressed as you’re forming new habits.

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You can save more if you commit to do so today. More important, you’ll live a happier life. Isn’t this worth all the sacrifice?

More About Saving Money

Featured photo credit: Eric Muhr via unsplash.com

Reference

More by this author

Christopher Alarcon

Finance Analyst and Founder of the Financially Well Off Blog & Podcast

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Last Updated on April 19, 2021

40 Healthy And Really Delicious Meals You Can Make Under $5

40 Healthy And Really Delicious Meals You Can Make Under $5

Ever had those moments where you really wanted to eat something delicious and healthy but didn’t have the financials means to do so? Whether you’re a student or parent, this compilation of 40 great, healthy, and inexpensive recipes will make every night special and help you get fit! No more meals where you have to force the food down! It’s time to make that budget your best friend and turn it into great recipes. Enjoy!

1. Fish Tacos in Crunchy Shells ($3.56 per serving)

Is there a better way to end the day than a Fish Taco dinner filled with protein and nutrients and is easy on the wallet? This recipe calls for a boys’ or girls’ night in front of a good movie or game.

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    2. Mini-Meatball Noodle Soup ($3.43 per serving)

    We’ve heard of the delicious spaghetti and meatballs recipes, but imagine having that same meatball goodness in a soup? It’s like Christmas in a bowl. Healthy, warm, and only $3.43 per serving.

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      3. Spaghetti and (Vegan) Meatballs ($2.13 per serving)

      Now it’s time to look at the traditional spaghetti and meatballs recipe, but with a little twist: vegan meatballs. This way, you can enjoy the Italian tradition without adding on the extra calories. I’m sold!

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        4. Kabocha Squash and Lentils ($3.12 per serving)

        Absolutely delicious way to end the day with a Kabocha Squash and lentils dinner. The beauty of this recipe is that you can actually make many other things from the mixture, from dips to full-on meals. All under $5 per serving.

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          5. Baked Coconut Lentils ($0.91 per serving)

          Coconuts are always a good idea, but it doesn’t have to be eaten only for dessert or breakfast. With this great recipe, you can now eat a lunch or dinner filled proteins and a coconut twist. Yum!

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            6. Easy Marinated Roasted Chicken ($3.40 per serving)

            We love chicken and at less than $5 per serving, we are in heaven with this recipe. Add some vegetables and rice on the side and you’ve got yourself a full meal!

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              7. Organic Greens and Goat Cheese Gratin ($2.36 per serving)

              This is absolutely divine. You get in your healthy greens and your fat macros with this great recipe. Takes only a few minutes to make and it’s easy on the wallet. Bon Appetite!

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                8. Beef Pot Roast ($3.22 per serving)

                One word: perfect. This meal will warm your insides and fill you up with the high protein content.

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                  9. Fajita-Style Quesadillas ($0.43 per serving)

                  If you want to eat Mexican tonight but want to stay in your budget, this Quesadilla recipe is your best friend. It’s tasty and filled with healthy ingredients for less than a dollar per serving.

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                    10. Fish Tostadas with Chili Lime Cream ($2.82 per serving)

                    Another great lunch idea for the busy days ahead. Prep this in the morning or the night before and you’ve got yourself a healthy and cheap lunch meal!

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                      11. Beef and Black Bean Chili ($1.36 per serving)

                      Might not look like much, but this amazing chili is actually extremely healthy for you. The protein from the beef and the carbs from the black beans will fill you up in no time, and keep you full for a long period of time. Delicious and warm, just right for the winter!

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                        12. Crispy Fish and Peppers ($2.18 per serving)

                        Amazing recipe for anyone looking to change up their meals while keeping their macros in check and not going overboard on spending. Satisfies your crunch tooth (see what I did there?) and gives you all the protein you need to stay full and lean.

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                          13. Vegetarian Gumbo ($1.50 per serving)

                          You have the perfect macro mix here with the carbs, fats, and proteins. At less than $5 per serving, you’ve got yourself a meal that will last for the whole week!

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                            14. Mexican White Bean Soup ($0.99 per serving)

                            With the cold weather creeping in, it’s not a surprise that soups are coming back in style. This great Mexican White Bean Soup dish will keep you warm for winter without making a hole in your pocket.

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                              15. Black Beans with Mango & Cilantro ($0.38 per serving)

                              Mangoes make every dish a little bit sweeter, which is why we absolutely love this recipe. A normal rice and bean dish might be a little meh, but add the sugary taste of mangoes and you’ve got yourself a party!

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                                16. Bean Burritos ($0.71 per serving)

                                If you’re having people over tonight and don’t want to spend too much time or money on food, this dish is a great option! You can even cut up the burritos into pieces and make finger foods while everyone’s watching the game or gossiping.

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                                  17. Five-Spice Beef Kabobs ($2.43 per serving)

                                  The spices in this recipes add a delicious twist to the beef kabobs, which is definitely worth trying!

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                                    18. Cornmeal Crusted Pork ($1.92 per serving)

                                    If you like the fried crunch but want to opt for a healthier alternative, cornmeal is your man. This healthy recipe will satisfy all your fried desires without making you pop open your pant’s button.

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                                      19. Chicken, Tomato & Cucumber Dinner Salad ($2.57 per serving)

                                      Easy to do, extremely healthy, and super delicious. A must-try!

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                                        20. Lentil Soup with Beef and Red Pepper ($1.90 per serving)

                                        I can’t believe how cheap this meal is, especially for all the nutrients it contains. You can make a big pot on Sunday night and divide it into small portions to last you a whole week.

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                                          21. Smoky Mushroom Stroganoff ($1.90 per serving)

                                          Craving pasta but not sure what to top it off with? How about smoky mushrooms with a twist?

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                                            22. White Bean Tuna Salad ($1.36 per serving)

                                            You can add this White Bean Tuna Salad in your sandwich or just eat it as-is for a quick lunch on a busy day.

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                                              23. Sausage Eggwiches ($0.80 per serving)

                                              Who says you have to eat fast food to get an eggwich? This delicious recipe will give you an amazingly healthy eggwich for less than a dollar per portion. Can you say Breakfast?

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                                                24. Baja-Cali Black Bean Salad ($1.17 per serving)

                                                Great snack to add to a movie-night with friends. You don’t have to use chemically-processed salsas anymore, you can now use this homemade salad for your chip dips.

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                                                  25. Gnocchi, Sweet Corn & Arugula in Cream Sauce ($2.24 per serving)

                                                  Italians always knew how to make carbs look good! This delicious Gnocchi recipe will give your lunch a whole new meaning. Easy to make and only $2.24 per serving.

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                                                    26. Vegetable Lasagna ($1.73 per serving)

                                                    If you were looking for a healthy lasagna, you’ve just found it. At under $5 per serving, you can fill yourself up right away without putting on the extra calories.

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                                                      27. Fajita-Ranch Chicken Wraps ($2.05 per serving)

                                                      Don’t know what to make for lunch this week? How about delicious chicken wraps with a healthy ranch? This recipe will make all your lunches, even the quick ones, healthy and colorful.

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                                                        28. Quinoa with Pan Roasted Brussels Sprouts ($1.24 per serving)

                                                        A dish that has quinoa and brussel sprouts can’t be unhealthy, it just can’t, which is why this dish is one to keep in the books. Easy to make, healthy, and will keep you full for a long period of time.

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                                                          29. Butternut Squash Chili ($1.04 per serving)

                                                          You don’t need meat to make chili now that you have this recipe! It’s 100% healthy, filling, and smells absolutely delicious.

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                                                            30. Fast Shrimp Bisque ($2.03 per serving)

                                                            Seafood doesn’t have to be expensive if you know how to do it right, and this fast shrimp bisque is a great recipe to try if you’re in the mood for some seafood!

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                                                              31. Chicken-Noodle Casserole ($0.98 per serving)

                                                              Looks divine doesn’t it? This super easy to make dish will satisfy all your taste buds without burning a hole in your wallet or adding a few extra numbers on the scale.

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                                                                32. Burrito Cups ($1.18 per serving)

                                                                Entertaining someone tonight and don’t know what to make as appetizers? These burrito cups are a great alternative to chips or other greasy finger foods. All you need to enjoy it is a spoon and a cup.

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                                                                  33. Lemon-Dill Shrimp & Pasta ($2.45 per serving)

                                                                  Another impressive shrimp recipe under $5 per serving. The lemon-dill twist adds a great taste to the dish.

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                                                                    34. Potato Frittata ($0.87 per serving)

                                                                    If you want to eat potatoes for breakfast but still want it to be healthy, this is the recipe for you. At under a dollar per serving, this potato frittata will make you see potatoes in a whole new light.

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                                                                      35. Grilled Pork and Pineapple ($2.67 per serving)

                                                                      Meat and fruits? Oh, yes. The juiciness of the pork mixed with the liquid sugar in the pineapple will make you wish you knew about it sooner.

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                                                                        36. Greek Honey-Lemon Pork Chops ($2.15 per serving)

                                                                        Another splendid recipe mixing sweet and salty for a healthy meal. Easy to make and absolutely mouthwatering.

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                                                                          37. Jamaican Pork Stir-Fry ($2 per serving)

                                                                          You can add this healthy stir-fry to any dish as a side or amply enjoy it as-is for lunch or dinner. You can even make a wrap sandwich out of it if you’re in a rush to eat.

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                                                                            38. Herbed Salmon ($2.49 per serving)

                                                                            Salmon contains a healthy dose of fats that will boost your metabolism, lower inflammation, and make you happier. At under $5 per serving, need I say more?

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                                                                              39. Five-Spice Pork Kabobs ($1.96 per serving)

                                                                              Exquisite recipe under $5 per serving that will most definitely awe everyone at your dinner party.

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                                                                                40. Stuffed Sweet Potatoes with Mango-Black Bean Salsa ($1.24 per serving)

                                                                                You don’t have to eat sweet potatoes alone anymore with this flavorful recipe.

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                                                                                  Featured photo credit: Featured Photo Credit: 5 Dollar Dinners via 5dollardinners.com

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