How To Save Money at Home and Not Die Trying: Ideas, Tips, and Tricks

“The secret is not to earn a lot, but to spend little.”

Want to know how to save money at home? So today I brought some methods that I use on a personal level and that has saved me a lot of money in recent years. Since I was a child my mother always told me the following sentence: “The secret is not to earn a lot, but to spend little.” Being in the current situation (financial crisis, the COVID-19 pandemic, widespread corruption in several countries, increasingly expensive standard of living, etc.), it is worth remembering some things that can save you a few dollars and/or euros a month.

No matter how much money you earn, if you do not lay the groundwork for responsible spending, you will never achieve the financial freedom you desire. So I invite you to keep reading to learn the best ways to save money that I have been learning and applying in my daily life.

How to Learn to Save Money

Learning to save money is the fundamental basis on which any human being’s personal finances are built. If you don’t control your expenses thoroughly, your bank account will be like a bathtub with the lid removed: no matter how much water you pour in, it will never fill up.

In an increasingly consumerist world, it seems that you are obliged to spend all your income on totally superfluous and unnecessary things in order to be like the rest of the people around you. Big mistake. If you really want to be a master in the art of saving money, forget about others!

Focus on yourself and on what you really need to live and be happy. Do you really need that $1,000 cell phone that your friend has? Do you need to buy an iPad for your 7-year-old son for $900 because the rest of your schoolmates have it too?

Have you ever thought that maybe they can afford it and you can’t? Or rather, have you ever thought about the possibility that your friends are actually mortgaging their lives for these material things? Do you want to be just like them? That would show little intelligence and a great lack of personality on your part. But if you have come this far, it is because you are really not like this and want to take care of your finances. Good decision! In the following lines, you will find out the secrets to saving money efficiently.

Why do you have to save money yes or yes?

My friends tell me that I have an obsession with saving money and that my mentality is that of Uncle Scrooge McDuck (although I don’t have his deposit full of gold coins, hahaha). Instead, I simply tell them that life is not a bed of roses and therefore you should be cautious and prudent.

Many things can happen that destroy our family finances if we are not prepared. A serious illness, the loss of a family member, an unexpected expense, lack of work, etc. It is in these moments when having money saved can get us out of trouble.

The financial crisis of the last few years has shown exactly that. Spending for spending’s sake and not having an efficient savings system, emergency reserve or investments has caused the savings of many families to jump through the air.

How to save money and not die trying

In the following lines of the article, I will show you my system and tips for saving money on a daily basis. I can assure you that they work perfectly and have given me an excellent result. Before you start, you should know that the key to becoming a consummate saver is consistency.

There is no point in starting with a lot of willpower if you are not willing to apply all these methods for the next few years of your life. You have to activate what I call the ant mode, a system that, like the one used by these tiny insects, will allow you to be prepared for the hard times. Can we get started?

1.- Control your day-to-day expenses

Your first goal should be to choose a method that allows you to control your daily expenses. Before you start saving, you must first know where you spend your money. Without realizing it, you may be wasting more than you should be. The opposite can also happen. After analyzing your actual expenses, you may conclude that you have only fair and necessary expenses and that your power to save is uniquely limited by your ability to earn income. For this reason, the first step should be to find out about this issue as soon as possible. Moreover, thanks to new technologies, this “work” has been drastically simplified.

Keeping track of your daily expenses will allow you to know in real-time if you are reaching the savings goals you have set.

2.- Methods for controlling your expenses

There are three ways to control your daily expenses and have absolute control over your personal finances. It doesn’t matter which method you choose, but you should use at least one. - Apps for saving: The most comfortable, fast, and efficient way to control your spending. Just browse Google Play or the Apple Store and you will discover many money-saving apps. - Spreadsheet: As efficient as the previous method, but less comfortable. You have to create a spreadsheet and record all the movements in which expenses occur. If you are lazy to create one, you can find many templates on the Internet. - Paper and pen: the method for life. Although this is better than nothing, at the moment I see it as totally impractical. It is impractical and most likely you hate it and don’t use it. You don’t need to write down expenses every day, just do it once a month. Those made with cards are very easy to identify since you only need to check your bank account. As for those made with cash, keep all the invoices or receipts in one place and do the monthly count.

Most banks today offer a spending control service, although they are only useful in case you have a single bank account and pay exclusively by card.

3.- Organize your expenses

Once you have chosen your preferred method of expense control, it is important that you sort them into their corresponding categories. This will allow you to better identify where money is “disappearing”. To give you an idea of how you should do this, I give an example of how I have this organized in my basic spreadsheet (I have two). For example:

Home: Mortgage or rent Supplies: Internet, water, electricity, gas, lodging Public transportation: Bus, taxi, train, subway Car: Gasoline, breakdowns, maintenance. Leisure: Cinema, restaurants, travel, other activities. Shopping (online or offline): Clothes, objects, appliances, etc. Supermarket: Food. Other: Whimsy, gifts, dining, hairdressing, online expenses.

4.- Create a family budget

If you search the Internet for the phrase “How to learn to save money,” you will see that in all the results there is always a common denominator: creating a family budget. The reason for this is that a budget will help you in three key ways: 1- Know your actual ability to save. 3- Always know when you spend your money. 3- Know your debt-to-income ratio. The best way to create a budget is to use an Excel spreadsheet. On the Internet, there are many predefined templates where you simply have to complete your expenses. Create your own family budget to start saving. I use the official Microsoft Office template. It is very complete and contains all the information you need. You can download it here.

5.- Start prioritizing

Once you have organized all your expenses and have chosen how to control them, it is time to prioritize the important expenses and put the scissors on the not-so-important ones.

1. Important expenses: mortgage, rent, car, food, etc. These are the main expenses that make up most people’s lifestyles and are the most difficult to eliminate (although they can be reduced).

2. Secondary expenses: These are those expenses that, to a greater or lesser extent, can be drastically reduced and even eliminated completely. As an example, I will point out some of the secondary expenses that I have personally reduced or eliminated.

• Gym: I changed by going jogging and doing exercises at home by watching YouTube guides. (Savings of $30 per month). Brands: With a few exceptions, I use white and black brands (Savings of $20–35 per month).
• Car: Unless I am in a hurry, I walk to all places that are within 2 kilometers. (Saving $10–25 per month).
• Television: I used to have Netflix. Now I watch only free channels (very few) and YouTube. (Saving $15 per month).
• Cinema: I love it, but now I only go on spectator’s day. (Savings of $20 per month). As you can see, by eliminating or reducing just five secondary expenses, I’m saving about $95 a month without much effort. It’s a matter of analyzing what you really don’t need to live and fearlessly putting in the scissors. Anyway, if you want to know how to save a lot of money, don’t miss the following tips and tricks that I have compiled so that your checking account balance doesn’t dissolve month after month like a sugar cube in coffee.

Tricks to save money every day

This list of tips and advice for saving money will be constantly revised and updated. Anything I learn or use in my daily life I will add here on my Medium profile. If anyone wants to contribute something else, I will be happy to.

1.- set a fixed monthly fee

In my opinion, this is the most basic and leading method of saving money. You have to set a fixed number every month and save it right after you receive your monthly salary, not after. The most common mistake many people make is to wait until the end of the month to see if anything is left over, which rarely happens. The amount to choose will depend on your monthly budget, so it can vary a lot depending on each person. My recommendation is to set at least $50 per month ($1 per day) and vary depending on how you get to the end of the month.

2.- Wait one day before making a purchase

This method consists of thinking about a purchase for 24 hours. This is very important for small and not very large purchases. Impulse buying is a major contributor to the drain on our bank account. So if you really want to buy something, wait a day or so and see how you feel afterward. You will probably be less tempted to make the purchases unless it is something you really need.

3.- Used items are fashionable

There are things we don’t mind buying second-hand, like a car, but we often forget that we can buy used items, like clothes, electronics or even furniture. Obviously, this does not apply to perishable goods, but there are many places and social media platforms where you can get great savings. A good idea is to visit thrift stores on the weekends (or whenever you have time) and shop around. You will often be surprised at the huge amount of money you can save and also products that are in perfect condition.

4.- Give up unhealthy addictions

One of the things I hate most in this world is tobacco. I have never understood how a person is able to spend money on something so extremely harmful to his health and to the people around him.

According to the WHO (World Health Organization), the average smoker spends a whopping $800 a year. If we add to these other types of addictions, such as alcohol, the number can skyrocket to unsuspected levels. If you are now going to tell me the typical phrase that some of my friends say to me (“you have to die of something”), you’d better put it away. It sounds like a pathetic and ridiculous argument to me. Besides, aren’t you here to save money? (Hahaha).

5.- Don’t buy animals, adopt

As a staunch defender of animals, I find it very sad that they continue to do business with them today. Moreover, often in a totally irresponsible way, like when Christmas comes and parents buy a dog or a cat for their 5-year-old son. Lamentable! If we leave aside the emotional part, buying an animal is a waste of money. You can adopt as many as you want for free.

6.- Cook more at home

Many times we prefer to eat out due to lack of time, but this can be solved by planning the meals. Organize your week taking into consideration which day you might have time to cook and don’t waste it. Try to cook several meals in large quantities and put them in the freezer. Then you can use them for the rest of the week without wasting time. This doesn’t mean that you don’t go out to eat once in a while.

7.- Keep an eye on your electronic devices

This is one of the best strategies for saving energy, especially in the summer. Remember that many of the electronic devices you have at home continue to use power even when they are turned off. While you are sleeping or working, it can be a good idea to unplug anything that is not essential, such as computers, televisions, or video game consoles. The money you can save over the course of a year can be brutal, and even more so now that electricity prices are at all-time highs.

8 .- Borrow from your friends

Ask around you! Friends are a great source for borrowing everyday items, such as furniture, kitchen accessories, and other simple things. You can also save a lot of money if you buy things they don’t need, as you will motivate them to help you because they will also receive a form of compensation. They may even offer you some free items that you didn’t expect. Just remember that you have to return the favors, as it is good to be grateful.

9.- Open a savings account with no fees

There is currently a very wide range of online banking entities that have no charges or commissions of any kind. Forget about having your money in a bank that charges for things as simple as having a card or withdrawing money at an ATM. My favorite accounts are ING Direct and N26 Bank.

10.- Stop paying for unnecessary things in installments

Is it necessary to take out a $900 loan to buy a state-of-the-art cell phone? Because of my job (earn more, spend less, and invest better), this is something I see a lot and find very sad. People are willing to go into debt for real nonsense, yes, then complain that they can’t make it to the end of the month. I’ve had the same cell phone for three years and I’m not changing it. If you don’t like it, don’t look at it. (Hahaha)

16.- Pamper yourself once in a while

The psychology of impulse buying and overspending is quite complex and interesting, but a good deal of it can be contained by what is known as positive reinforcement. Rewarding yourself in moderation is a great way to keep control of your finances. You should set rules for yourself, but don’t be afraid to give yourself a break when appropriate.

17.- Fill the piggy bank for your child

Do you have children or plan to have them? Would you like them to go to college? Well, you can already save up for that, because it is a real downer. One strategy I really like is the one my sister-in-law uses with my nephews and nieces. When certain dates arrive (like a birthday), she always tells me the same thing:

If you intend to buy something for example $20, don’t do it. Buy something more modest and put the rest in the child’s savings account.

Said and done. When the time comes, if you have a budget of say $50, you can buy something for $20 and the rest you put in the savings account (or investment) created purposely for the children’s future.

18.- Encourage meetings with friends

Do you know how to save money every week in a very easy way? Instead of going out to dinner with your friends, you can invite them to your house and cook yourself. Obviously, this has to be reciprocal and each week in a different house. I mentioned this to my friends a long time ago and today we repeat it quite assiduously. Besides saving on restaurants and gasoline, we can give more beer in the beer since we don’t have to drive, hahaha (kidding).

19.- use public transportation more

Yes, I know that riding a car is much more comfortable than riding a bus, but you didn’t enter this post because the question of how can I save money was on your mind? Besides being much more polluting to the environment, car use involves much more than just spending on gasoline. As the years (or kilometers) go by, breakdowns and maintenance costs start to appear. Because I don’t like driving much, and because of the serious parking problems in my city, a few months ago I decided to use public transportation more, and the truth is that I have noticed this a lot. Try it and you will see.

20.- Plan ahead

If you plan to make a big expense, such as a trip, start planning many months in advance. Rushing is never good and leaving everything to the end can cost a lot more. Without going any further, the last time I visited London (I love to travel), I started preparing for six months before I left. Thanks to that, I saved more than 50% between transportation and hotel.

21.- Don’t buy clothes that are too cheap

Although it may seem somewhat contradictory, buying clothes that are too cheap is not a very smart choice when it comes to saving money. This is something I have learned over the years and it is a reality. For example, I used to buy one pair of running shoes a year (at least) and they always ended up broken. Since I buy good quality ones, they last about three years. They cost twice as much, yes, but they last three times as long. Do the math and you will see.

22 .- Make a shopping list

It has been more than proven that making a shopping list and sticking to it is a great trick for spending less at the supermarket. Another way to save money on food is to shop on a full stomach. Shopping on a very hungry stomach tends to lead us to buy something that we did not plan to buy in the beginning. Also, in most cases, it is usually junk food.

23.- Don’t waste the water

One of the best money-saving tips I can give you at home is to control your water consumption. Never leave a tap running if you are not using it. Likewise, use the shower and never the bathtub. Check your home for leaks and fix them as soon as possible. Always use the dishwasher at full load. Another very interesting trick is to buy water-flow reducing filters. They are very cheap and you will save up to 80% on total consumption.

I hope that some of these money-saving tips and ideas have helped you and you can save a few dollars a month with relative ease.

As you have seen, it is all a matter of getting to work and mapping out a good savings and investment strategy. Once you have done that, you just need to be consistent for a long time.

I can assure you that by putting into practice everything you have read, in the long run, your family’s finances will be much more robust and resilient to bad times and crises. You will always have a safety cushion.