Ways to save money by spending more

Saving money by spending more sounds contradictory. But what if it’s true though?

Frugal living is has always been a popular lifestyle choice, both among the financially independent, as well as for those living paycheck to paycheck.

However, often times choosing to pinch pennies only gives us the illusion of saving money.

Truth be told, there are certain situations where spending more actually leads to serious savings in the long run.

Here are some examples where you could actually save money on common household expenses by spending more.

1. Choosing to spend on quality ingredients

Cooking at home is well known to be a huge money saver.

However, some people can take it to the extreme and choose quantity over quality.

A common situation is buying food on sale, that’s about to expire. Or, buying fruits and vegetables likely to go bad soon, but for that very reason grocery stores sell them for cheap.

To save money, it’s often tempting to choose the (so much) less expensive option!

Problem is, low quality ingredients could potentially lead to health problems. Which in return, leads to spending money. Since medicine and doctors aren’t cheap, you’re probably better off spending more in quality!

2. Spending more on quality appliances / tools / gadgets etc.

Say you need to buy an air conditioner. Or a coffee maker, since your old one broke down because you’ve used it every single day for years!

saving money

If you’ve ever shopped around for.. anything, you must have noticed the huge price difference between different brands.

Now, not all costly items are worth buying. On the contrary, often times it’s just the brand that’s expensive.

However, it is also true that energy efficient appliances cost a lot more than less efficient ones. Just as, low quality gadgets are usually cheaper because they often break down when you lest expect it (or, as proven by Murphy’s law, when you need them most).

In order to save money on utility bills in the long run, you might want to opt for appliances and devices that consume less energy.

On the same note, it’s always worth paying for quality. This way, you won’t have to fork out a serious chunk of money whenever your “new” purchase needs to be replaced.

3. Spending money on quality clothes, shoes & accessories

This might be considered splurging but truth is, quality does last longer.

Although some shoes and clothes can be both qualitative and cheap, other items that complete your wardrobe could wear out after only a few weeks.

What do you do if you find a hole in your shoes? You probably should buy a new pair…

As a result, instead of saving money, you actually spend a lot more by buying the same product multiple times.

4. Hiring help

When you have an electrical wiring problem, do you usually call your cousin Jimmy to fix it for free?

That might be a good plan, if Jimmy was an actual electrician! ‘Cause if he doesn’t know what he’s doing, you might end up with even bigger problems!

Often times, we try to save money by fixing things ourselves. It works in some cases (and can save a pretty penny as well), but hiring an expert when you have a serious problem to fix is probably a good investment!

5. Investing in home improvements

Big or small, certain home improvements can save some serious money along the way!

Adding insulation can turn out to be a costly investment, but do you know how much money you can save on your utility bills in the long run? At least few hundred bucks a year!

Other small investments might seem useless, especially if you’re stressed out about spending money.

However, faucet aerators can help save on your water bill. Energy efficient light bulbs, like LED (light emitting diode) or CFL (compact fluorescent lamp), can help save money on electricity. They’re both small expenses, considering how much money you could save in the long run!

Looking to save money by spending less doesn’t make you stingy.

It’s only natural to look for ways to curb your spending, especially if you’re aiming to become a financially responsible person.

Often times, the more expensive option might be the smart thing to do.

Author bio: Adriana is an experienced web content writer, passionate about everything personal finance. She blogs about the topic over at moneyjourneytoday.com, where she covers everything from saving money and frugal living tips, to real estate and investing.

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How Much Money You Should Save

So many of us are wondering about this important financial questions of how much money we should be saving. It’s an important question to have the answer to, but the answer is not so simple. When it comes to how much money you should save, each person’s circumstances, goals and worldviews are different, which makes it difficult to give a one size fits all answer. Many suggest saving 10 % of your monthly income, but for some that will prove to be too difficult and for others, they have the ability to stock away a little bit more. There are a few guidelines that can help us to put things into perspective and decide what a good savings rate would be for ourselves despite what Mr Jones down the road is saving.

savings

The first thought to ponder on, is what are you saving for? There are so many different reasons to be saving money. You may be interested in a short term saving, to be able to afford your annual vacation. The amount you should be saving for this can be worked out quite easily, based on the cost of the vacation and how long you have to go before you’re required to make the bookings.

Perhaps you’re thinking bigger than just your annual vacation and you want to have some sort of nest egg for the unexpected emergencies, or a “rainy day? fund. On top of all this you may be thinking about saving for your retirement too, which when it boils down to how much you should be saving, has a lot of other factors that come into play.

So once you know what you want to save for, it puts your monthly savings into perspective. Now, you don’t only have to be saving for one certain thing. You could have a short term savings, a savings cushion and be saving toward your retirement all at the same time, and that is probably the best thing that we should all be doing! Covering ourselves and providing our families with financial security the whole way.

The second thing that impacts on the amount that we should be saving each month, centers on the stage of life that we are in. If you are in your 20’s, saving for your golden years, then you have room to play with and you won’t need to be putting away huge amounts of cash each month. As the years go on, and the closer you get to retirement age, you can increase your monthly contributions. But if you started focusing on your retirement later on in life, and it’s around the corner from your, then if you can manage it, your monthly savings should be as high as you can manage, in order for you to be able to maintain the standard of living that you’re used to, when you’re no longer earning.

Be smart about your savings, and whatever you decide, make sure that you are putting something away each month without exception!

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Traveling for a Fraction of the Norm

When you have decided to take your personal finances into your own hands, it is time to analyze every aspect of your life. Sometimes, analyzing what seems like should be simply an effortless, fun affair, is where you will find the greatest opportunities for cost-savings. Take vacation for example.

In your previous life, you may have been happy to sign up with a travel agency or tour guide. Spending a few thousand dollars on a ten day trip might not have bothered you. But now that you have decided to take your financial well-being into your own hands, you need to get a grip on where your money is going.

Traveling for a Fraction

You can still travel while holding yourself accountable for your expenses. You just need to get a little wiser about the way that you spend money. By using sites like Orbitz, you will be able to get the same great flights, awesome rental car, and amazing hotel room as you can get through a travel agency. What you miss out on, is the terrible prices- for shame!

If you are smart, you will not just settle there. By utilizing a new service by Groupon you can find even better deals that was not is available on Orbitz alone. By using Groupon’s Coupons you can find 50% off your beach hotel bookings and up to $150 off as well.

When you book through a travel agency they may very well be trying to find you the best deal possible. But we can guarantee they are trying to find themselves the best deal possible. Sometimes, this happens to line up mutually beneficially, just perfect. Most times however, tour agencies are just looking to make a buck off of their “clients.” Do yourself a favor and do a little homework before buying a ticket- that way you will still have the freedom to travel again some day in the future.

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