What are some ways that I can save more money?

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Answered by: Dylan, An Expert in the Basics of Frugal Living Category
Every day, many people find themselves wondering the same thing: how can I save more money? While there is no magic wand to wave to achieve your savings goals, there are methodologies that even the most financially distressed individual can employ to leverage their savings power and build up an emergency fund.

Many people stumble through everyday life woefully ignorant of their toxic spending habits. We wake up, get ready for work, stop by the coffee shop, and arrive at the office refreshed and ready to start a new day. Notice anything wrong with this scenario? I do. People are spending between five and seven dollars a day at the coffee shop before they even start work.

Do you know how that coffee shop stays in business? They purchase coffee beans at a wholesale price and sell it to you at a high margin. While you may not have the economies of scale in your favor when it comes to purchasing coffee in bulk quantities, you can purchase perfectly good coffee grounds at your grocery store, bring your coffee with you to work, and put the difference into your savings account. If you purchase a daily coffee, this simple method could save you between $70 and $100 per month.

Now employ this method to other areas of your life. Don't eat your lunches out, pack them. Don't eat your dinners out, make them! So many people spend hundreds of dollars every month just by eating out. Don't fall into this trap. Go to the grocery store and purchase good ingredients to make delicious meals. Enjoy a healthier lifestyle and be happy that the only thing getting fatter is your pocket book.

Another area of potential financial improvement for many people is THE four letter word: DEBT. Want a new car? Finance it. Need a new computer? Open a store credit card and charge it. Absolutely must have those new clothes? Throw it on the plastic.

If you want to achieve financial independence, then it is imperative that you eliminate your debt. All of it. As soon as possible. What I recommend is eliminating your debt with the highest interest rate first. Pay as much over the minimum balance as possible every month. Pay only minimum payment on all other debt until this high interest debt is paid off. Once you've paid off your highest interest debt, take that monthly payment and apply it to your next highest interest rate debt. Rinse and repeat.

Once you are done paying off your debt using this methodology, you can continue "paying" these monthly debt payments to your savings account. You will be amazed how quickly you will be able to save up a three, six, or even twelve month emergency fund.

Many people end up in debt because they purchase things that they cannot afford. If you do not have the cash saved up to purchase something, you cannot afford to buy it. It really is as simple as that. This is a great budgeting tool as well. If you think that you'd like to purchase something, save up for it. If you still want to buy it by the time you have the requisite funds, then it isn't an impulse purchase and you likely will not regret it.

"How can I save more money?" Simple. Follow the steps above and enjoy the financial padding that many people lack in our modern consumer-based society. If you are regimented and give these methods an honest effort, I guarantee you will see your savings grow along with your financial security.

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