11 ways to save money this year
I get it. You work hard for your money and you should be able to keep more of it. You want to save as much money as you can to increase your savings rate, so you can retire early or reach financial independence. You want to be free of worry about money. You want to be able to do what you want when you want while having passive income (i.e., making money while you sleep). Let’s be clear, we’re not talking about sacrificing your values, we are finding creative ways to live out more of your values without worrying about money.
An important step to reaching financial independent is to save money. Find ways you can cut down expenses. Take inventory of where your money goes. Does how you spend your money align with your values?
Here are 11 simple ways to save money this year:
Cook at home more. Reserve eating out for when you’re with a friend. Have a dedicated fund for eating out and stick to it (i.e,. I may or may not have a boba fund ;))
Pro tips:
Exchange recipes with a friend.
Share food with a neighbor, friend or coworker.
Cook together with a friend/partner in real life or virtually.
Shop around for car insurance/auto insurance.
My family has had Esurance for more than 5 years. Personally, I was uncomfortable paying close to $1,100/year for my car alone. By getting a quote from Geico, we’re able to save $1,400/year with same coverage.
Note: there may be additional savings associated with your workplace (i.e., as a federal employee) or with a university that you graduated from.
Get a Costco membership with a friend (i.e., since Costco allows you to add a second member onto your account.
Pro tip: as a secondary person, if you decide to get your own membership later on, you would still qualify as a new customer and can score new member deals (i.e, ~$30 shop card).
Share a subscription service with a friend (i.e,. Spotify Premium, YouTube Premium, YouTube TV, Netflix, Peloton, etc.). Find out if you can save money when joining the service with a friend or two).
Utilize your public library (i.e, physical books, ebooks, and more). Try to cut down on the amount of books you buy. I know this may be hard as a fellow book lover myself. Oh, the smells of books.
Consider switching up your phone plan.
Your current plan that you have, even if it’s a grandfathered plan may not be most economical plan for you. True story of how my family switch from our grandfathered T-mobile plan to its Magenta First Responder plan and saved a bit of money. And hey, it even comes with a free Netflix subscription.
Consider adding on Google Voice to make international calls if you must
Consider becoming a student again to take advantage of student offers (i.e, Amazon Prime Student, Canva for Education)
As a San Francisco resident, I can take classes at City College of San Francisco for almost free! Well, I just need to pay a super small fee, but to me, the external accountability is worth it as I priority my personal and professional growth, taking classes that interest me from personal finance to a doula class.
Try a no-buy period challenge (whether it’s a week or a month of not buying anything you don’t need.
Try an “empties” challenge (i.e., finishing up your skincare products before you purchase more). Also, speaking from my personal experience, you don’t need 4 bottles of sunscreen and 3 bottles of Costco-sized lotion.
Negotiate your rent with your landlord, especially during the pandemic.
Consider extending your lease longer term at your current place to save money. There continues to be more supply than demand, at least for San Francisco Bay Area, so try it, you won’t lose anything. If your landlord isn’t entertaining any thoughts of lowering the rent, present other alternatives that you would enhance your life (i.e., a friend is negotiating an in-unit washer/dryer).
Be prepared to move if it’s unsuccessful. It’s your landlord’s loss, not yours.
Talk to friends about personal finance and money management. Share tips. Money does not need to be a taboo subject. Let’s find ways to uplift each other, learn about our money mindsets and reach financial freedom together. There’s room for everyone.
All right, here are just a few strategies to save money this year. Let’s start to be more mindful about money and see how far we can go together. Please share a money tip that you have below.