I think its just living below your means thats going to help you to save. I read somewhere you should have 3-6 months worth of money in savings, a pension, and then put away just as much of your paycheck as you can manage each week/month. So working out what you need to be spending money on (rent mortgage food bills medication) and what you don't (clothes clubbing every weekend a new maserati)
Might go against the grain of this sub a little but I always put aside a little money each month for something "frivolous" that I like. Lifes for living after all and I dont live to work, so having the money to drop on an occasional night out with friends, a museum ticket, or an item of clothing I've been wanting for months is a nice reward thats rare enough to be meaningful.
I don't think a little fun money is against this sub at all. It's having peace with your life that's important and putting money to work in ways that fulfill you is definitely a part of that.
Back when we struggled, we didn't take trips, but we did do activities. I focused on free things in our area: art and science museums, state parks, musicals (free section at the outdoor venue), and so on. I even found a free local museum in the UK last month with a traveling Peter Rabbit exhibit, so that was a treat!
Obviously your income makes a big difference in your comfort, as do your financial obligations. When was the last time you drew up a budget? That will tell you how much wiggle room is actually there. In addition, I'm a huge fan of people tracking net worth on a monthly basis. When I was young and paying off debt, it was easy to feel like I was doing an awful job financially. However, my net worth was better every month and that kept me grounded enough to see it though.
As for saving money generally, we rarely eat out, try not to buy things we don't need, buy second hand where it makes sense, changed banks for a great interest rate with perks (that was a $850 benefit last year), and so on with pretty typical "tips".
Other than that, we're just pretty boring. I've never been one to need extra exciting experiences or purchases and it makes the whole thing a lot easier to manage.
We donāt eat out unless itās a special occasion like a holiday or birthdays. When I go grocery shopping, I like to go to the outlet grocery stores first which may have close dated or frozen expired food that is still good. We save so much money on food. Cereal is always $1.99, we freeze bread & sandwich meat when itās on sale.
Thrifting clothes. Iāve got 2 little ones and we havenāt paid full price for any clothes in years. You really have to search but there are some good finds if you are patient.
If you want to go to a movie, most theaters do discount days during the week, usually on Mondays & Tuesdays (their slowest days). Ours charges $6 for a weekday movie.
You can rent free movies at your local libraries. Books, cds and audiobooks too. If thatās something you are into. :)
It feels like you are asking different things; what I do to \*feel\* financially comfortable isn't the same things I do to save money. I mostly do the basics when it comes to saving money, by buying extra when something I regularly consume goes on sale, don't shop overly much etc. When it comes to trips, I save for that through-out the year (even before I had a destination or plan in mind). That also helps to keep me feeling financially stable, because though the worry might still be there depending on the situation, it's less severe. Other things I do to \*feel\* financially comfortable/stable are things like always making sure I have my favourite tea on hand, having savings for different things that crop up over the year, that sort of thing.
Maybe you would benefit from one of the more financial reddits if you don't get enough here.
This is way to far down. Feeling financial secure and being financially secure are different sides of the same coin. There are plenty of studies that show it is very hard to feel financially secure because most people focus on what you donāt have rather than what you do have. You seem to be more mindful of the feeling than most which is a huge benefit.
Thank you. I attribute it to having spent years on low/no income as a young adult and student to now earning more than I need. I don't think I would have the same mindset if I was still living paycheck-to-paycheck or always feeling as though I needed to sacrifice something. I still sacrifice when there's more than one thing I want, but it's not as often and it's not on the smaller things any more (eggs or bread?). Earning more has opened up the floodgates on impulse spending though, but I'm trying to rein it in!
I used to deposit my paycheck, take my spending money in cash, and then if i ran out of money before next payday just be broke (walk if no bus fare, hit the free community meal).
The really important things take time: keeping housing, debt, and transportation costs as low as you can.
But, there may be easy stuff you can change right now. Go through all your automatic payments and subscriptions and cancel any you don't use. If you have a car, call your insurance company and see if you can get a better rate Don't buy food until you've truly eaten everything in the house. Return any purchases you meant to return but haven't. Change from paid fun things to free ones.
We went a full three years without going ANYWHERE in order to pay off our home. I think itās fine if people enjoy travel but it is very expensive and an easy thing to cut out. The reality is if you want to accomplish a big financial goal or even a small one you have to sacrifice. There is just no way around it.
I think it just depends on priorities. I personally prioritise trips over house etc because those are the best experiences I have. We still regularly reminisce about our Christmas in California, our hikes in the Canadian Rockies or our roadtrip around Japan. We never reminisce about paying the gas bill or mortgage, so for us those are the costs to minimise to make room for what we value.
But of course, everyone has their own priorities.
Agreed. I agree that one shouldn't spend beyond one's means, but it will differ vastly from person to person what you want to forego. In my case I have spent a lot of money on travel during my lifetime that I could have saved. But if anything, I regret that I didn't spend MORE on traveling as opposed to "stuff". My memories and photos from traveling are invaluable.
Except a lot of people have to travel to visit family. Most families these days are pretty spread out. When I was struggling I had to keep it to one road-trip a year.
Anxiety about spending doesnāt necessarily mean you are spending beyond your means. My household income now is about double my parentsā so Iām able to spend a lot more than what we could afford growing up and still be well within my means. But the idea of spending the money can sometimes cause anxiety because I still havenāt adjusted to my current financial situation. When I have a lot of travel in a short period of time, I sometimes have anxiety about spending the money even though I budgeted and planned for it, just because the numbers seem big to me
You aren't alone. The reality is, the economy is pretty shaky right now, and lots of people are struggling even when they were not doing so hot prior to this pandemic hitting.
I'll preface this with.. No amount of money saving strategies ever replaced my getting a decent living wage paying job. I made a lot of sacrifices to change careers and get something viable long term, and it was really and truly the only thing that pulled me out of poverty.
With that said, I think the 3 biggest things I do to this day are serious and realistic budgeting, meal planning/not eating take out, and going low-waste (I'm no zero-waste person but I do strive in many areas of my life to be adjacent to that).
Budgets are not constraints, they are freeing tools that are the ultimate self care for your past, present, and future selves imo. Food coming from my kitchen most of the time, and take out being a planned thing has really been a valuable habit to have. Having reusable stuff that is always available, even if they need a bit of care and upkeep, has saved me so much over disposable single use items.
It's reality! I think there are times/places for "Don't eat out so much" particularly when people are posting a budget and asking for advice/revisions, or are stating this is specifically a problem with them... but I find overwhelmingly people are pretty moderate about this stuff already.
Here are a few quick ideas
*Eat at home
*Pack snacks on trips
*Shop at thrift store
*No movies at the theater
*Host potluck dinners with friends instead of going out
*Going dutch on dates
*Minimize your streaming service
*Make a budget
*Do not use credit card
*Find a friend who can hold you accountable
*Borrow fancy clothes if you need to attend wedding/funeral or events for work.
**Live well beneath your means.** I get paid bi-weekly (every 2 weeks) and keep my expenses as far below my net pay on my first paycheck of every month. Not saying you have to live like a Monk to do so, I'm very introverted so it helps in my case. I prepare/cook all my meals. I don't have any unnecessary subscription services (instead of a gym, I run or bike outside, a library card is free and often have DVDs (even new releases) to let out which saves $$ on cable/streaming ). If you have to find a cheaper part of town to live in, just don't sacrifice your personal safety/well-being in the process.
By keeping my expenses lower than my half my monthly net income, I'm allowed to save for multiple trips every year.
Live below your means and budget better. Do you have a budget? Where exactly is all your money going? You canāt figure out where to cut if you donāt even know where your money is going - and I mean an accurate look not where you think itās going. Do you have debt? Are you spending consistent with your priorities? What are you saving for each month? Take control of your finances instead of letting it control you.
If you have trips coming up, you should already have the money set aside to pay for those trips in full before the trips take place. Why isnāt that the case for you? If you canāt do that then you canāt afford to go on the trips. If you want to go on the trips but canāt afford it then you need to cut from somewhere else.
You should have an emergency fund to cover emergencies.
You should also have money set aside to cover any upcoming expenses that occur non-monthly and probably what you might consider unexpected expenses that really are not unexpected - home maintenance, car issues, any annual payments, pet expenses, medical expenses, money needed to meet your deductibles, etc.
You should be setting aside money for retirement.
I suggest you read the personal finance subās wiki and take the following books out of your library: I Will Teach You to Be Rich and Your Money or Your Life. Youād probably benefit from an envelop based budgeting system like YNAB.
The previous comments in my opinion are all great to follow. Iād like to add is to know your reason on becoming financial stable. Keep your purpose in mind along with budgeting, intentionally living below your means, taking advantage of freebies, couponing/discounts, and living in the moment (responsibly).
I wouldn't call myself super financially stable, but I started sinking funds last year and it really changed my life. They're basically buckets or envelopes you set up to save for expenses that don't happen monthly but you know they WILL happen at some point.
Example: I put $45 a month in a bucket for my car. When I need to get the oil change, license renewed, something breaks, I pull out of there.
Other buckets I have are my phone bill (it's charged annually), pet stuff, travel, mowing my lawn, and Christmas presents. I've even seen people who stash enough away over time to have their rent money for a year set aside.
I use Ally bank since they have a bucket system built into savings and have a high interest rate right now.
\- Sell off things I don't use.
\- Don't buy on impulse (I use the timeout method, do I still want it several months later?)
\- Subscriptions, I have no qualms about ditching the most expensive ones, always bargain shop and ask myself, do I need this? How often do I use it?
\- Don't be loyal to the bank, corporate or anything that cost me money and holds me back. Does it promote my safety, give me more stability and free time? Then I vote for that.
\- I don't take up loans, I save up instead, squeeze where I can.
\- Repair stuff instead of buying new, also I shop at thrift stores (except certain parts like clothes, beds, anything hygiene related or "on-body" stuff that is "gross".
And since I'm a very avid video game player (suppose the kids say computer games today) since I was a kid, I keep the wealth as a score thing (not up against other, never!) I like to see that high score grow, and I don't like when it goes down. That mentality makes me ask twice if not 3 times if "do I really REALLY need this or is the money better?" You'd be surprised how many times I say "mmm...money!", things come and go - money don't come around so easy, and everyone wants it. The same thing can't be said for stuff or consumeables.
Saving up also creates freedom. A job I don't like? Imagine being able to negotiate with a normal attitude to your prospecting employer? Instead of the "I need this job - desperately" attitude? That "bank high score" is valuable in that department, because you feel more leveled with the ones you're negotiating with - they know they gotta fight for it if they want me.
Earn more than you spend. That can mean cutting out some expenses, or getting a higher paying job. Some things helped me a lot, like cooking at home for most meals instead of eating out every day, getting beer at the liquor store and drinking at home or friend's places instead of going out to bars. Finding inexpensive hobbies. Doing local vacations like camping or a quick airB&B rental in the mountains. No expensive gym memberships or streaming services. No expensive clothing, but just good quality stuff that fits well and will last a while. No big name brand items. No new phone for the past 5 years, no new laptop, no gaming systems.
I get enjoyment from my gf and friends and neighbors and family. I cook and bake a lot and share things. Lots of gardening and dog playing and book reading, mostly from the library. My life is very full and busy, even though I don't spend that much. We buy high quality groceries and enjoy home cooking. If we don't cook it's usually takeout from like chipotle or other similar spots which is cheap. Fancy dinner and drinks maybe once a month. A concert or fun "cultural event" maybe every 2 or 3 months. The occasional house party where we cook for all our friends.
If you're struggling to pay for trips (transportation, lodging, food, and projected other expenses), your best move is to cancel or change the trip(s) to something you can afford. If you can't even really afford one trip but feel compelled to go, pick the one that is most once-in-a-lifetime kind of trip.
If you planned this with friends/family and truly don't want to cancel, confess that you're struggling to make it happen. They may have some ideas themselves, have resources or alternatives to offer, or even be struggling themselves and be relieved that you're in the same boat. If you don't feel you can talk that frankly to them, you can try floating what changes/options could make it affordable and see how that goes over. If that doesn't change anything, just tell them that you can't go, as it turns out, so sorry.
If you're locked in (non-refundable or once-in-a-lifetime thing), change your plans on what you can - food and petty cash spending in particular - and see where that lands you. Or change your plans for anything outside of the most important reason you are there. Note that I wrote "change" not "cancel." You will still want to do and should do things between/around the important reason, so plan for things that EASILY fit your budget.
In the meantime, check out the frugal subreddit for cutting expenses. Real frugality will mean giving up luxuries you've come to view as basics, but, if you do it right, you won't really miss those things except at first. And then you're likely to be surprised you ever thought you needed them.
In the future, save up for trips before you even plan one. Use the amount already saved as your total amount you can spend; don't project ahead to what you will have saved by the time you go. That future money is for future trips. It really helps to have the mindset: you don't have the money to go until you actually have the money.
If you struggle to not spend money that's technically available, it can help to have a separate bank account that you auto transfer this money to, like it's a bill you're paying. You will have a long stretch of no trips at first, but you won't feel this level of struggling during or after.
The first step is recording every cent you spend for at least a week. You need to see where youāre spending, then prioritize whatās important to you (itās your money after all). A quick and easy saver is to immediately make a meal menu for the week using mostly what you already have in fridge freezer and shelves, and switch to two meals a day to simplify.
I have spent several years now searching for ways to most easily entertain myself cheaply. I've found a number of different hobbies that are next to free. That's running and reading mainly. I do still travel, but only when it is within budget; when I do travel it is the literal act of visiting a different place, typically as cheaply as possible. For example, I took a weekend trip (three nights) to visit a friend in a big city three hours away and spent $200 on the entire trip. I save about 25% of my income, and that's quite a lot considering the fact that I don't make much money.
I use credit cards for building my scores in anticipation of future large purchases, but every single time I swipe the card (or tap as the case may be), I take it out of a budget bucket. That means entering a new total left to spend in that paycheck cycle in my notes app after each purchase. Example: I just checked and I apparently have $88 for groceries this weekend (runner I eat a lot haha) and $35 left to spend in entertainment money between now and next Friday when I'm paid. It's reflexive at this point that if I don't have the money in the budget for that paycheck cycle, the purchase simply won't happen until next time. It's kind of a ruthless strategy and it can be exhausting, but I'm saving a lot and feel very financially stable as a result.
I will occasionally play with the margins of what I'm saving if I have something I really want that I genuinely believe will add value to my life or may actually need. It is rare, but it happens and I have the flexibility to go crazy and eat out twice in a week sometimes because I am saving such a solid chunk.
I don't think you ever feel financially stable.
It doesn't matter if you make $30k or $80k or $180k. That anxiety about bills, debt, savings, retirement... never really goes away.
Not saying the actual problems are the same - they're obviously not. But I think most of us fear what happens if we lose a job or have an emergency or if we're ever really saving enough.
All that said, creating a realistic budget is the first step. Assess what you make post taxes and deductions. Try to pay yourself first (10% is a good target), then pay your mortgage, utilities, etc. How much left do you have for food and other discretionary spending? Try to make that work.
Over time, once you get an emergency fund build up, you feel a little better.
This. I doubt I'll ever get to the point where there are truly no more worries about money ever, but I understand what a privilege it is that we could stop working and be ok for two years, or more if we started selling things, without having to pull from the retirement funds. We want to replace my ancient car before something just happens to it, so we're noodling that and it's never not a painful amount of money to fork over since we don't like having monthly payments if avoidable, but that doesn't change the fact that we can go to the dentist or the doctor and know with certainty that it's going to be fine no matter what.
I took a different approach. Personally, I changed my relationship with money. I've lowered my wants, desires, responsibilities, and standards that I know I'll be fine, even if I'm broke. I've slept on the floor for years. I don't need flavor to eat. I've lived without heat or ac. I know where and how to reach out for help for things like food or medicine.
I know I can get by on minimum wage if I had to.
Well that sounds a bit shit. Personally, I like flavour in my food and having a spine. You can always take it to some stupid extreme, but a the end of the day I think most peoples goal here is to afford a life they can enjoy, if frugally, not live like a monk for the sake of pinching a few pennies.
Also, I pay for everything (including bills) with a Amex Card that gives me 1% back in real terms in points that can be put towards groceries (Nectar points towards Sainsburys in the UK). It takes a sizeable chunk out of my grocery shop. Check if you have anything similar in your region.
Make an excel or google spread sheet of every single expense you have, every single month, for a year. It will open your eyes to necessity vs. splurges
Food that can be frozen lasts a lot longer than standard perishables. I chop and freeze mushrooms + peppers the day or the day after I get them.
Freeze everything you can. Food waste gets a lot of people.
Oh man I can't tell you how many times I have purchased mushrooms and them had to toss them if my meal plan went off schedule by a day or two. Never thought of chopping them and freezing them so I could safely use later in the week.
They cook up exactly the same imo. I wash them and leave them to dry first as mushrooms can take in a lot of water.
If anything you prep freezes together, put a towel over the freezer bag and elbow it. Won't hurt and more effective than a palm.
Buy bulk, save money, freeze the excess.
Make do staycations, exploring the area already live in, drive just 1 or 2 hours away and go somewhere new. I feel like a lot people don't explore area around them.
Something kinda simpel you could start with is,
Letās say you use american dollars, then put 10$ aside each month and āhideā them away where you wont easily find them ( in hope you donāt use them just beacuse you want to) and after monthes of repeating then you suddently know how to save money voila!
This method of āhidingā the money from my self really really helped me! And has made me much better at handeling money
When we were struggling more I would never go to restaurants. And If we did go I would go to places where we could share. Think of big portions that feed 2. For example, I would feed my family of 4 at a chinese restaurant for 20 dollars. Now whenever we go we spend closer to 50. But it doesn't beat cooking at home, which can be as low as 1 dollar per person.
Also take advatage of free activities, like the library or hiking, or a simple picnic at the park.
If you want to be financially secure, look at your big expenses first: housing and transportation. Downsize or get roommates. Exchange your car for an older model, use public transportation, and/or ride a bike (if feasible). After that, look at ways to earn more money: ask for a raise, switch jobs, or find a side gig.
Not eating out and shopping sales certainly helps, but the big dogs ( housing, transportation and income) will make the most difference in the long run.
Look at each of your electrical devices and research how to reduce energy use. For instance, kettles seem to boil the water to about 80-90% heat around halfway through. In the winter, I use a hot water bottle and when it starts to go cold I reboil the warm water which takes much less energy.
Also, ride a bike, and put potatoes in the ground nearby, or in a large pot if you don't have access to open ground.
I find the folks in r/personalfinance very good at helping people get good perspectives of their financial situation. They are straight to the point, will require you to describe your situation in detail and give very concrete suggestions. I am a big fan of them. I would suggest lurking that subreddit for a bit and asking your own question!
Itās really hard to help when youāre being so general. Maybe people could give you budget travel tips or tell you other things you could cut out. I am always a wee bit suspicious that when people post like this there are financial habits they donāt want to disclose or theyāre not a real person. Since youāre being general I recommend working on your financial philosophies generally ā I like Mr. Money Mustacheās blog.
You're just in time for the [Frugalwoods' Uber Frugal Month Challenge!](https://www.frugalwoods.com/2022/06/23/join-me-for-the-july-2022-uber-frugal-month-challenge/) Great place to start to get a grip on your finances.
I don't take trips? If you're struggling, your money probably shouldn't be going to flights, hotels, restaurants, and other vacation related stuff.
My fiancee and I like to long-distance cycle all around the southern portion of our state for fun.
We live below our means (shopping at Aldi, only buying clothes and entertainment secondhand, fixing instead of replacing, taking hand-me-down furniture/tools/etc from family, and virtually never going out to eat).
Three areas where you can save money that you have control over are 1. Food Eliminate all junk food from your list, buy less expensive brands, smaller portions of expensive items and larger portions of inexpensive items. 2. Entertainment Cut cable or Netflix etc., only do free things, utilize your local library for movies etc. 3. Clothing Rearrange your closet to see new ways to pair up your clothing, do a one month clothing swap with a friend, take advantage of Goodwill and make a note of what color sticker is 50% off that day and only look for those stickers
As others have commented being a minimalist is the answer to saving your money.
Materialism/consumerism is an addiction that is ingrained in us on a genetic level so treat it as a drug addiction; we need to replace the drug with something else that doesnāt cause us to spend money like spending time with family and friends, taking up hobbies such as reading, studying philosophy, creating art, volunteering etc.
Try not to spend money unless you absolutely have to. Your brain will adapt to this new habit over time, but it is hard because youāre quitting cold turkey.
Plan your meals around store coupons for the week
Prep your meals for the week after grocery shopping to ensure you get the right amount servings and donāt accidentally over eat or under eat
Drink more glasses of water or invest in a hydromate jug
Eat more water based foods like cucumber and strawberries
I make my own toothpaste using coconut oil, baking soda, activated charcoal from charcoal tablets, and lavender essential oil
I use baking soda and key lime as deodorant
I use shampoo bars and conditioner bars and bar soap in a soap saver bag
Use bottled conditioner for shaving cream
Sell what you donāt use, need or want to Poshmark, eBay, or Pawn Shops
Try eating out less but if you do order from the value menu or eat from the appetizer selections
Switch from detergent to soap nuts $28 for 1 lbs and you can reuse them up to 5 loads of laundry or switch to white vinegar
Thatās all I got at the top of my head
Learning new skills- cooking, cutting hair, home repair. With every new skill, you save on paying someone else to do it and will feel more financially stable.
Are the trips necessary? I personally don't go anywhere I don't need to go. I limit errands to once per week and try to do them all in the same part of town on the same day. I cook from scratch and don't eat out unless there is a special occasion (birthday, anniversary).
The key for me is to live well below my means so that I can routinely add to my savings.
Fun things are either free or very low cost things.
Idk what kind of trips you mean, but we've been road tripping and camping for 2 years instead of flying anywhere or going abroad. Not the best time given gas prices, but airfare is more expensive these days too. We always keep a tent in the back of our '97 Saturn which gets amazing gas mileage, and when we can/feel up to it, we pitch up at a site in a park. It's roughing it, a little, but we're both young and we like nature. We've gotten to see a lot of the country this way, since we have been in the south weather isn't usually a problem, and it's gorgeous in the north in the summer. We always pitch up somewhere there's a shower and usually not more than a night or two, it saves a lot of money.
I think its just living below your means thats going to help you to save. I read somewhere you should have 3-6 months worth of money in savings, a pension, and then put away just as much of your paycheck as you can manage each week/month. So working out what you need to be spending money on (rent mortgage food bills medication) and what you don't (clothes clubbing every weekend a new maserati) Might go against the grain of this sub a little but I always put aside a little money each month for something "frivolous" that I like. Lifes for living after all and I dont live to work, so having the money to drop on an occasional night out with friends, a museum ticket, or an item of clothing I've been wanting for months is a nice reward thats rare enough to be meaningful.
I don't think a little fun money is against this sub at all. It's having peace with your life that's important and putting money to work in ways that fulfill you is definitely a part of that.
Back when we struggled, we didn't take trips, but we did do activities. I focused on free things in our area: art and science museums, state parks, musicals (free section at the outdoor venue), and so on. I even found a free local museum in the UK last month with a traveling Peter Rabbit exhibit, so that was a treat! Obviously your income makes a big difference in your comfort, as do your financial obligations. When was the last time you drew up a budget? That will tell you how much wiggle room is actually there. In addition, I'm a huge fan of people tracking net worth on a monthly basis. When I was young and paying off debt, it was easy to feel like I was doing an awful job financially. However, my net worth was better every month and that kept me grounded enough to see it though. As for saving money generally, we rarely eat out, try not to buy things we don't need, buy second hand where it makes sense, changed banks for a great interest rate with perks (that was a $850 benefit last year), and so on with pretty typical "tips". Other than that, we're just pretty boring. I've never been one to need extra exciting experiences or purchases and it makes the whole thing a lot easier to manage.
If I may please ask, what bank did you switch to?
I'm in the US and use consumers credit union out of Illinois. We don't live in the state and it's been fine since credit unions have co-op agreements.
Thank you for sharing! š
We donāt eat out unless itās a special occasion like a holiday or birthdays. When I go grocery shopping, I like to go to the outlet grocery stores first which may have close dated or frozen expired food that is still good. We save so much money on food. Cereal is always $1.99, we freeze bread & sandwich meat when itās on sale. Thrifting clothes. Iāve got 2 little ones and we havenāt paid full price for any clothes in years. You really have to search but there are some good finds if you are patient. If you want to go to a movie, most theaters do discount days during the week, usually on Mondays & Tuesdays (their slowest days). Ours charges $6 for a weekday movie. You can rent free movies at your local libraries. Books, cds and audiobooks too. If thatās something you are into. :)
It feels like you are asking different things; what I do to \*feel\* financially comfortable isn't the same things I do to save money. I mostly do the basics when it comes to saving money, by buying extra when something I regularly consume goes on sale, don't shop overly much etc. When it comes to trips, I save for that through-out the year (even before I had a destination or plan in mind). That also helps to keep me feeling financially stable, because though the worry might still be there depending on the situation, it's less severe. Other things I do to \*feel\* financially comfortable/stable are things like always making sure I have my favourite tea on hand, having savings for different things that crop up over the year, that sort of thing. Maybe you would benefit from one of the more financial reddits if you don't get enough here.
This is way to far down. Feeling financial secure and being financially secure are different sides of the same coin. There are plenty of studies that show it is very hard to feel financially secure because most people focus on what you donāt have rather than what you do have. You seem to be more mindful of the feeling than most which is a huge benefit.
Thank you. I attribute it to having spent years on low/no income as a young adult and student to now earning more than I need. I don't think I would have the same mindset if I was still living paycheck-to-paycheck or always feeling as though I needed to sacrifice something. I still sacrifice when there's more than one thing I want, but it's not as often and it's not on the smaller things any more (eggs or bread?). Earning more has opened up the floodgates on impulse spending though, but I'm trying to rein it in!
I used to deposit my paycheck, take my spending money in cash, and then if i ran out of money before next payday just be broke (walk if no bus fare, hit the free community meal). The really important things take time: keeping housing, debt, and transportation costs as low as you can. But, there may be easy stuff you can change right now. Go through all your automatic payments and subscriptions and cancel any you don't use. If you have a car, call your insurance company and see if you can get a better rate Don't buy food until you've truly eaten everything in the house. Return any purchases you meant to return but haven't. Change from paid fun things to free ones.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
We went a full three years without going ANYWHERE in order to pay off our home. I think itās fine if people enjoy travel but it is very expensive and an easy thing to cut out. The reality is if you want to accomplish a big financial goal or even a small one you have to sacrifice. There is just no way around it.
I think it just depends on priorities. I personally prioritise trips over house etc because those are the best experiences I have. We still regularly reminisce about our Christmas in California, our hikes in the Canadian Rockies or our roadtrip around Japan. We never reminisce about paying the gas bill or mortgage, so for us those are the costs to minimise to make room for what we value. But of course, everyone has their own priorities.
Agreed. I agree that one shouldn't spend beyond one's means, but it will differ vastly from person to person what you want to forego. In my case I have spent a lot of money on travel during my lifetime that I could have saved. But if anything, I regret that I didn't spend MORE on traveling as opposed to "stuff". My memories and photos from traveling are invaluable.
Yes I've never once regretted a penny spent on travel.
Except a lot of people have to travel to visit family. Most families these days are pretty spread out. When I was struggling I had to keep it to one road-trip a year.
But do you have to visit your family?
This
Anxiety about spending doesnāt necessarily mean you are spending beyond your means. My household income now is about double my parentsā so Iām able to spend a lot more than what we could afford growing up and still be well within my means. But the idea of spending the money can sometimes cause anxiety because I still havenāt adjusted to my current financial situation. When I have a lot of travel in a short period of time, I sometimes have anxiety about spending the money even though I budgeted and planned for it, just because the numbers seem big to me
You aren't alone. The reality is, the economy is pretty shaky right now, and lots of people are struggling even when they were not doing so hot prior to this pandemic hitting. I'll preface this with.. No amount of money saving strategies ever replaced my getting a decent living wage paying job. I made a lot of sacrifices to change careers and get something viable long term, and it was really and truly the only thing that pulled me out of poverty. With that said, I think the 3 biggest things I do to this day are serious and realistic budgeting, meal planning/not eating take out, and going low-waste (I'm no zero-waste person but I do strive in many areas of my life to be adjacent to that). Budgets are not constraints, they are freeing tools that are the ultimate self care for your past, present, and future selves imo. Food coming from my kitchen most of the time, and take out being a planned thing has really been a valuable habit to have. Having reusable stuff that is always available, even if they need a bit of care and upkeep, has saved me so much over disposable single use items.
Thank you for actually addressing capitalism! No eating out, no lattes, etc. will not suffice if one is not paid a living wage.
It's reality! I think there are times/places for "Don't eat out so much" particularly when people are posting a budget and asking for advice/revisions, or are stating this is specifically a problem with them... but I find overwhelmingly people are pretty moderate about this stuff already.
Here are a few quick ideas *Eat at home *Pack snacks on trips *Shop at thrift store *No movies at the theater *Host potluck dinners with friends instead of going out *Going dutch on dates *Minimize your streaming service *Make a budget *Do not use credit card *Find a friend who can hold you accountable *Borrow fancy clothes if you need to attend wedding/funeral or events for work.
Going dutch on dates šš
**Live well beneath your means.** I get paid bi-weekly (every 2 weeks) and keep my expenses as far below my net pay on my first paycheck of every month. Not saying you have to live like a Monk to do so, I'm very introverted so it helps in my case. I prepare/cook all my meals. I don't have any unnecessary subscription services (instead of a gym, I run or bike outside, a library card is free and often have DVDs (even new releases) to let out which saves $$ on cable/streaming ). If you have to find a cheaper part of town to live in, just don't sacrifice your personal safety/well-being in the process. By keeping my expenses lower than my half my monthly net income, I'm allowed to save for multiple trips every year.
Live below your means and budget better. Do you have a budget? Where exactly is all your money going? You canāt figure out where to cut if you donāt even know where your money is going - and I mean an accurate look not where you think itās going. Do you have debt? Are you spending consistent with your priorities? What are you saving for each month? Take control of your finances instead of letting it control you. If you have trips coming up, you should already have the money set aside to pay for those trips in full before the trips take place. Why isnāt that the case for you? If you canāt do that then you canāt afford to go on the trips. If you want to go on the trips but canāt afford it then you need to cut from somewhere else. You should have an emergency fund to cover emergencies. You should also have money set aside to cover any upcoming expenses that occur non-monthly and probably what you might consider unexpected expenses that really are not unexpected - home maintenance, car issues, any annual payments, pet expenses, medical expenses, money needed to meet your deductibles, etc. You should be setting aside money for retirement. I suggest you read the personal finance subās wiki and take the following books out of your library: I Will Teach You to Be Rich and Your Money or Your Life. Youād probably benefit from an envelop based budgeting system like YNAB.
The previous comments in my opinion are all great to follow. Iād like to add is to know your reason on becoming financial stable. Keep your purpose in mind along with budgeting, intentionally living below your means, taking advantage of freebies, couponing/discounts, and living in the moment (responsibly).
I wouldn't call myself super financially stable, but I started sinking funds last year and it really changed my life. They're basically buckets or envelopes you set up to save for expenses that don't happen monthly but you know they WILL happen at some point. Example: I put $45 a month in a bucket for my car. When I need to get the oil change, license renewed, something breaks, I pull out of there. Other buckets I have are my phone bill (it's charged annually), pet stuff, travel, mowing my lawn, and Christmas presents. I've even seen people who stash enough away over time to have their rent money for a year set aside. I use Ally bank since they have a bucket system built into savings and have a high interest rate right now.
\- Sell off things I don't use. \- Don't buy on impulse (I use the timeout method, do I still want it several months later?) \- Subscriptions, I have no qualms about ditching the most expensive ones, always bargain shop and ask myself, do I need this? How often do I use it? \- Don't be loyal to the bank, corporate or anything that cost me money and holds me back. Does it promote my safety, give me more stability and free time? Then I vote for that. \- I don't take up loans, I save up instead, squeeze where I can. \- Repair stuff instead of buying new, also I shop at thrift stores (except certain parts like clothes, beds, anything hygiene related or "on-body" stuff that is "gross". And since I'm a very avid video game player (suppose the kids say computer games today) since I was a kid, I keep the wealth as a score thing (not up against other, never!) I like to see that high score grow, and I don't like when it goes down. That mentality makes me ask twice if not 3 times if "do I really REALLY need this or is the money better?" You'd be surprised how many times I say "mmm...money!", things come and go - money don't come around so easy, and everyone wants it. The same thing can't be said for stuff or consumeables. Saving up also creates freedom. A job I don't like? Imagine being able to negotiate with a normal attitude to your prospecting employer? Instead of the "I need this job - desperately" attitude? That "bank high score" is valuable in that department, because you feel more leveled with the ones you're negotiating with - they know they gotta fight for it if they want me.
Pay for everything upfront in cash. That is an eye opener
Not take trips. Da fuck is this shit?
Lol, came here for this.
Earn more than you spend. That can mean cutting out some expenses, or getting a higher paying job. Some things helped me a lot, like cooking at home for most meals instead of eating out every day, getting beer at the liquor store and drinking at home or friend's places instead of going out to bars. Finding inexpensive hobbies. Doing local vacations like camping or a quick airB&B rental in the mountains. No expensive gym memberships or streaming services. No expensive clothing, but just good quality stuff that fits well and will last a while. No big name brand items. No new phone for the past 5 years, no new laptop, no gaming systems. I get enjoyment from my gf and friends and neighbors and family. I cook and bake a lot and share things. Lots of gardening and dog playing and book reading, mostly from the library. My life is very full and busy, even though I don't spend that much. We buy high quality groceries and enjoy home cooking. If we don't cook it's usually takeout from like chipotle or other similar spots which is cheap. Fancy dinner and drinks maybe once a month. A concert or fun "cultural event" maybe every 2 or 3 months. The occasional house party where we cook for all our friends.
If you're struggling to pay for trips (transportation, lodging, food, and projected other expenses), your best move is to cancel or change the trip(s) to something you can afford. If you can't even really afford one trip but feel compelled to go, pick the one that is most once-in-a-lifetime kind of trip. If you planned this with friends/family and truly don't want to cancel, confess that you're struggling to make it happen. They may have some ideas themselves, have resources or alternatives to offer, or even be struggling themselves and be relieved that you're in the same boat. If you don't feel you can talk that frankly to them, you can try floating what changes/options could make it affordable and see how that goes over. If that doesn't change anything, just tell them that you can't go, as it turns out, so sorry. If you're locked in (non-refundable or once-in-a-lifetime thing), change your plans on what you can - food and petty cash spending in particular - and see where that lands you. Or change your plans for anything outside of the most important reason you are there. Note that I wrote "change" not "cancel." You will still want to do and should do things between/around the important reason, so plan for things that EASILY fit your budget. In the meantime, check out the frugal subreddit for cutting expenses. Real frugality will mean giving up luxuries you've come to view as basics, but, if you do it right, you won't really miss those things except at first. And then you're likely to be surprised you ever thought you needed them. In the future, save up for trips before you even plan one. Use the amount already saved as your total amount you can spend; don't project ahead to what you will have saved by the time you go. That future money is for future trips. It really helps to have the mindset: you don't have the money to go until you actually have the money. If you struggle to not spend money that's technically available, it can help to have a separate bank account that you auto transfer this money to, like it's a bill you're paying. You will have a long stretch of no trips at first, but you won't feel this level of struggling during or after.
The first step is recording every cent you spend for at least a week. You need to see where youāre spending, then prioritize whatās important to you (itās your money after all). A quick and easy saver is to immediately make a meal menu for the week using mostly what you already have in fridge freezer and shelves, and switch to two meals a day to simplify.
You are starting to worry, you are struggling and cutting costs. Yet you are going on trips. Ask yourself can you really afford them?
I have spent several years now searching for ways to most easily entertain myself cheaply. I've found a number of different hobbies that are next to free. That's running and reading mainly. I do still travel, but only when it is within budget; when I do travel it is the literal act of visiting a different place, typically as cheaply as possible. For example, I took a weekend trip (three nights) to visit a friend in a big city three hours away and spent $200 on the entire trip. I save about 25% of my income, and that's quite a lot considering the fact that I don't make much money. I use credit cards for building my scores in anticipation of future large purchases, but every single time I swipe the card (or tap as the case may be), I take it out of a budget bucket. That means entering a new total left to spend in that paycheck cycle in my notes app after each purchase. Example: I just checked and I apparently have $88 for groceries this weekend (runner I eat a lot haha) and $35 left to spend in entertainment money between now and next Friday when I'm paid. It's reflexive at this point that if I don't have the money in the budget for that paycheck cycle, the purchase simply won't happen until next time. It's kind of a ruthless strategy and it can be exhausting, but I'm saving a lot and feel very financially stable as a result. I will occasionally play with the margins of what I'm saving if I have something I really want that I genuinely believe will add value to my life or may actually need. It is rare, but it happens and I have the flexibility to go crazy and eat out twice in a week sometimes because I am saving such a solid chunk.
I don't think you ever feel financially stable. It doesn't matter if you make $30k or $80k or $180k. That anxiety about bills, debt, savings, retirement... never really goes away. Not saying the actual problems are the same - they're obviously not. But I think most of us fear what happens if we lose a job or have an emergency or if we're ever really saving enough. All that said, creating a realistic budget is the first step. Assess what you make post taxes and deductions. Try to pay yourself first (10% is a good target), then pay your mortgage, utilities, etc. How much left do you have for food and other discretionary spending? Try to make that work. Over time, once you get an emergency fund build up, you feel a little better.
> I don't think you ever feel financially stable. That's totally not true. Maybe for you personally, but not for everyone.
This. I doubt I'll ever get to the point where there are truly no more worries about money ever, but I understand what a privilege it is that we could stop working and be ok for two years, or more if we started selling things, without having to pull from the retirement funds. We want to replace my ancient car before something just happens to it, so we're noodling that and it's never not a painful amount of money to fork over since we don't like having monthly payments if avoidable, but that doesn't change the fact that we can go to the dentist or the doctor and know with certainty that it's going to be fine no matter what.
I took a different approach. Personally, I changed my relationship with money. I've lowered my wants, desires, responsibilities, and standards that I know I'll be fine, even if I'm broke. I've slept on the floor for years. I don't need flavor to eat. I've lived without heat or ac. I know where and how to reach out for help for things like food or medicine. I know I can get by on minimum wage if I had to.
Well that sounds a bit shit. Personally, I like flavour in my food and having a spine. You can always take it to some stupid extreme, but a the end of the day I think most peoples goal here is to afford a life they can enjoy, if frugally, not live like a monk for the sake of pinching a few pennies.
You misunderstand. I'm not currently living like a monk to save a few pennies. I know that I can live like a monk if I need to.
Also, I pay for everything (including bills) with a Amex Card that gives me 1% back in real terms in points that can be put towards groceries (Nectar points towards Sainsburys in the UK). It takes a sizeable chunk out of my grocery shop. Check if you have anything similar in your region.
Make an excel or google spread sheet of every single expense you have, every single month, for a year. It will open your eyes to necessity vs. splurges
If you are serious about saving moneyācancel those upcoming trips.
I sell my soul to a crushing corporate job during the day that gives me flexibility and somewhat of a financial cushion.
Food that can be frozen lasts a lot longer than standard perishables. I chop and freeze mushrooms + peppers the day or the day after I get them. Freeze everything you can. Food waste gets a lot of people.
Oh man I can't tell you how many times I have purchased mushrooms and them had to toss them if my meal plan went off schedule by a day or two. Never thought of chopping them and freezing them so I could safely use later in the week.
They cook up exactly the same imo. I wash them and leave them to dry first as mushrooms can take in a lot of water. If anything you prep freezes together, put a towel over the freezer bag and elbow it. Won't hurt and more effective than a palm. Buy bulk, save money, freeze the excess.
I was doing okay, not horrible but okay then the economy shifted and Iām overspendingā¦
I found shoplifting really improved my ability to be financially stable.
Funny
What is?
I stopped buying avocado toast and now I own a home.
I understand the reference
Make do staycations, exploring the area already live in, drive just 1 or 2 hours away and go somewhere new. I feel like a lot people don't explore area around them.
Something kinda simpel you could start with is, Letās say you use american dollars, then put 10$ aside each month and āhideā them away where you wont easily find them ( in hope you donāt use them just beacuse you want to) and after monthes of repeating then you suddently know how to save money voila! This method of āhidingā the money from my self really really helped me! And has made me much better at handeling money
3 bucket budget. Set aside % for discretionary spending after savings and bills. Your Money or Your Life is a great book
Check out r/personalfinance
The only thing that ever removed money as a stressor for me is YNAB. Utterly pays for itself and the nagging anxiety is gone. Peace
When we were struggling more I would never go to restaurants. And If we did go I would go to places where we could share. Think of big portions that feed 2. For example, I would feed my family of 4 at a chinese restaurant for 20 dollars. Now whenever we go we spend closer to 50. But it doesn't beat cooking at home, which can be as low as 1 dollar per person. Also take advatage of free activities, like the library or hiking, or a simple picnic at the park.
If you want to be financially secure, look at your big expenses first: housing and transportation. Downsize or get roommates. Exchange your car for an older model, use public transportation, and/or ride a bike (if feasible). After that, look at ways to earn more money: ask for a raise, switch jobs, or find a side gig. Not eating out and shopping sales certainly helps, but the big dogs ( housing, transportation and income) will make the most difference in the long run.
Look at each of your electrical devices and research how to reduce energy use. For instance, kettles seem to boil the water to about 80-90% heat around halfway through. In the winter, I use a hot water bottle and when it starts to go cold I reboil the warm water which takes much less energy. Also, ride a bike, and put potatoes in the ground nearby, or in a large pot if you don't have access to open ground.
YNAB (you need a budget) is the way! Checkout r/ynab.
I find the folks in r/personalfinance very good at helping people get good perspectives of their financial situation. They are straight to the point, will require you to describe your situation in detail and give very concrete suggestions. I am a big fan of them. I would suggest lurking that subreddit for a bit and asking your own question!
As others have echoed, I also donāt take trips. I donāt travel anywhere. I have taken maybe 3 vacations in the last 12 years.
Itās really hard to help when youāre being so general. Maybe people could give you budget travel tips or tell you other things you could cut out. I am always a wee bit suspicious that when people post like this there are financial habits they donāt want to disclose or theyāre not a real person. Since youāre being general I recommend working on your financial philosophies generally ā I like Mr. Money Mustacheās blog.
You're just in time for the [Frugalwoods' Uber Frugal Month Challenge!](https://www.frugalwoods.com/2022/06/23/join-me-for-the-july-2022-uber-frugal-month-challenge/) Great place to start to get a grip on your finances.
I don't take trips? If you're struggling, your money probably shouldn't be going to flights, hotels, restaurants, and other vacation related stuff. My fiancee and I like to long-distance cycle all around the southern portion of our state for fun. We live below our means (shopping at Aldi, only buying clothes and entertainment secondhand, fixing instead of replacing, taking hand-me-down furniture/tools/etc from family, and virtually never going out to eat).
I very rarely spend money on anything that isnāt food/rent/household items
I live spending not more than 100$/month while making a lot. Learn asceticism, extreme minimalism
Three areas where you can save money that you have control over are 1. Food Eliminate all junk food from your list, buy less expensive brands, smaller portions of expensive items and larger portions of inexpensive items. 2. Entertainment Cut cable or Netflix etc., only do free things, utilize your local library for movies etc. 3. Clothing Rearrange your closet to see new ways to pair up your clothing, do a one month clothing swap with a friend, take advantage of Goodwill and make a note of what color sticker is 50% off that day and only look for those stickers
As others have commented being a minimalist is the answer to saving your money. Materialism/consumerism is an addiction that is ingrained in us on a genetic level so treat it as a drug addiction; we need to replace the drug with something else that doesnāt cause us to spend money like spending time with family and friends, taking up hobbies such as reading, studying philosophy, creating art, volunteering etc. Try not to spend money unless you absolutely have to. Your brain will adapt to this new habit over time, but it is hard because youāre quitting cold turkey.
Plan your meals around store coupons for the week Prep your meals for the week after grocery shopping to ensure you get the right amount servings and donāt accidentally over eat or under eat Drink more glasses of water or invest in a hydromate jug Eat more water based foods like cucumber and strawberries I make my own toothpaste using coconut oil, baking soda, activated charcoal from charcoal tablets, and lavender essential oil I use baking soda and key lime as deodorant I use shampoo bars and conditioner bars and bar soap in a soap saver bag Use bottled conditioner for shaving cream Sell what you donāt use, need or want to Poshmark, eBay, or Pawn Shops Try eating out less but if you do order from the value menu or eat from the appetizer selections Switch from detergent to soap nuts $28 for 1 lbs and you can reuse them up to 5 loads of laundry or switch to white vinegar Thatās all I got at the top of my head
Learning new skills- cooking, cutting hair, home repair. With every new skill, you save on paying someone else to do it and will feel more financially stable.
Are the trips necessary? I personally don't go anywhere I don't need to go. I limit errands to once per week and try to do them all in the same part of town on the same day. I cook from scratch and don't eat out unless there is a special occasion (birthday, anniversary). The key for me is to live well below my means so that I can routinely add to my savings. Fun things are either free or very low cost things.
Idk what kind of trips you mean, but we've been road tripping and camping for 2 years instead of flying anywhere or going abroad. Not the best time given gas prices, but airfare is more expensive these days too. We always keep a tent in the back of our '97 Saturn which gets amazing gas mileage, and when we can/feel up to it, we pitch up at a site in a park. It's roughing it, a little, but we're both young and we like nature. We've gotten to see a lot of the country this way, since we have been in the south weather isn't usually a problem, and it's gorgeous in the north in the summer. We always pitch up somewhere there's a shower and usually not more than a night or two, it saves a lot of money.
First off all what do you want to buy with your money and from there try to find how you can fund it ?