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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10 Ways to Save Money

Securing your financial future starts with saving. Whether your goals are to meet your family’s needs, save for a better retirement, or buy a bigger house or faster car, saving is the most important way to ensure your meet your personal finance goals. And contrary to popular belief, it doesn’t have to be hard. According to Money & Career Cheat Sheet, as long as you are making some money, you should be saving some.

Check out these 10 simple ways to save money:

1. Record your expenses

The very first step to saving is knowing how much you spend. For a whole month, keep track of every transaction you make. This means trying to record everything you buy, from a newspaper to a cup of coffee. After gathering the information, make groups of different categories, such as your mortgage, services like gas and electricity, groceries, and so on.

2. Manage your debt

Before setting your budget, it’s important to determine how much debt you have and begin repaying it before you can start saving. Once you are finished paying back the loan, you could continue to put the same amount of money aside for your savings fund.

Save Money

3. Create a budget

Now that you’re clear on how much you spend monthly, build a budget to plan and help control your spending. In the budget ensure that you put some money away for emergencies, and remember to include a place for expenses that don’t occur monthly, such as car services, or home reparations.

4. Plan on saving money

Try to allocate at least 10% of your net income towards saving. If you find that with your current budget this is not possible, then you should probably cut back on more expenses if possible.

5. Set saving goals

To make it easier to start, set for yourself some achievable saving goals – both long term and short term. For the short terms goals, you could put money away to buy a new computer, bike, or car, and for your long term goals, maybe plan for your kid’s college education, retirement, or a remodeling of the house. Take time to think about what’s most important to you and what you want your money to achieve and make your goals real by writing them down.

6. Use price comparison tools

Price comparison tools are available online and will let you if there are lower prices for the item you intend to purchase available elsewhere. Sites such as Price Grabber and Shopzilla can help you save tons of dollars on many items.

7. Decide on the priorities

Different people have different priorities when it comes to saving, so you need to determine which goals are the most important to you and save accordingly.

8. Different investment and saving strategies

For your short term goals you probably want to use a regular savings account, but for your long term goals you could consider other options, such as mutual funds and stocks. Although it’s best to speak to a financial advisor before making any decisions.

9. Automatic transfers and direct debits

Automatically transferring money from your main account to your savings account makes it less likely for you to spend money, because you will never see it in your account and will make it easier to achieve your saving goals.

10. Watch the savings grow

Make a point of checking on your progress monthly. This will not only help you to stick to your saving plan but also identify loopholes in the plan and allow you to make adjustments accordingly.

About the author: Michael Peggs is the founder of Marccx Media, a digital marketing agency specializing in SEO and Content Marketing. Before Marcxx, Peggs worked at Google in business development, forming digital media and advertising partnerships. He is also a blogger and podcaster, hosting the iTunes Top 10 New & Noteworthy podcast You University – The Personal Branding Podcast.

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