Learning how to save money is one way of releasing free cash flow from your current budget. One of the ways to do this is to review your outgoings and spending, you will be surprised at how many savings you can find. The significance of this free cash is that you can use it to fund your Financial Freedom education for free. What a great way to start!
There are more sites and books on how to save money than anyone can mention. Let’s face it, we have heard most of these before. “Take two minute showers” come on, this is one of life’s little luxuries.
Start LearningThe savings tips below, in isolation, may not seem substantial but as a group they will have a positive impact on your free cash to get you started. Remember, from little things big things grow.
Tip 1
Work Lunch
We don’t want to cramp your style however, if you are buying your lunch, a drink and a morning coffee each day you would be spending $13 per day. If you bring something from home, let’s say three days a week, a saving of approximately $30pw could be made.
Tip 2
Evening Meals at Home
Portion size and planning is the key here, most of us tend to put far more on the plate than we require, this then becomes the normal amount we eat and we gain weight as a consequence. Reducing the meal portion size by 20% and planning five evening meals so you don’t purchase more than required thus eliminating waste should save $10pw.
Tip 3
Meals Out
When you and your partner are dining out a couple of times a week, just simply order a smaller steak or cheaper meal. Let’s say $5 per meal, that’s a saving of $20pw. There would be even more options to save money using coupons and vouchers like the one’s found at Groupon.
Tip 4
Grocery Shopping
Always make a list prior to going to the supermarket, plan your weekly meals and requirements and stick to the list as best you can. Try to only shop once a week as this will give the supermarket less opportunity to entice you purchase items you don’t really require. Substitute brand names with generics where possible but don’t comprise on food quality. Should be able to save $10pw.
Tip 5
Credit Cards
Always pay any credit/store card bills within the interest free period. Any amounts not paid in full each month attract interest at high rates and this is a total waste of your money.
Tip 6
Rent
If you’re really serious about saving you can look around your suburb for cheaper rental or have your partner move in if you’re not already living together. Why pay two lots of rent if you don’t have to, that’s a no brainer, if they are the one. Even if your single you could have a friend move in and share the costs.
Tip 7
Insurance
Insurance is one of those necessary evils which you need to have to protect your wealth. Whether it be car, home and contents, travel or some other insurance always shop around and get a couple of quotes. If an insurance company wants to increase their market share they may under cut the market rate. Other companies may have made bad decisions and increase their rates above the market so stay alert.
Tip 8
Smoking
Stop smoking if you are a smoker, or at least cut down the number of cigarettes your smoking each day. This is very expensive and also bad for your health. There is plenty of opportunity to save money here.
Now you have identified savings without too much damage to your lifestyle, the main thing to do now is to assess how to leverage this free cash to fast track your journey and steps to financial freedom as learning how to save money in itself will not set you free.
This is where you need to rely on your streetwise education, as mentioned before this type of education is the most important part of your journey to financial freedom and security.
