How to Save Money

Would you like to start saving some money in the New Year? Well, Dave Ramsey, the renowned financial radio show host, says everyone has good intentions when it comes to saving money, but many times life throws you a curveball and people find themselves spending whatever money they save.

For those of you who may not be familiar with Ramsey, he has been counseling and advising people on ways to reduce debt and financial stress for nearly 30 years. His radio show, where he discusses important financial issues, airs weekdays from 2-5 pm Eastern Standard Time (EST) and his podcasts are available on YouTube.

In a recent blog, How to Save Money: 20 Simple Tips, Ramsey discusses easy tips for how you can save money and take control of your finances. In this blog, he shares good advice on easy things you can do to save money and reduce debt. Here’s a quick overview of some of his great budget saving tips:

• Say goodbye to debt! Ramsey suggests using the “snowball effect”, which he says is the best way to pay off debt by paying the smallest debt first and then working to pay off the largest debt. This is a great idea because once you pay off the smaller debt, you free up extra money to pay the higher debt and to save.


• Cut down on groceries and buy generic. This is usually a big budget item that varies from week to week, and could wreak havoc on your budget. Ramsey said plan your trip to the store by reviewing sales flyers and making a list. Also, seek out coupons that can help you save.Keep in mind, you should always try to shop without distractions, and that means leaving the kids at home whenever you can. If that’s not possible, order your groceries online for pick up. Many local grocery stores are offering that option free of charge because of the pandemic, and will most likely keep the service since so many people are starting to enjoy that option.


• Start purchasing generic items. Ramsey says this is one of the best places to save money. Why spend more for a fancy logo, when many times people find that they can’t tell the difference between brand-name items and generic items. Cleaning supplies, medicine, and a variety of food has generic options that are just as good, but can save you a lot of money.


• Cut cable and cancel automatic subscriptions and memberships. It’s time to evaluate what you really need and what you’re not using. Cut cable and shop around to find the best internet deals, and cut your automatic subscriptions and memberships – especially ones that you’re not using.  Many people have grandiose entertainment packages that they never have time to use. So now is a great time to cut those expenses out of your budget.


• Save money automatically and spend extra or unexpected income wisely.  These are by far two of the greatest tips from Ramsey’s blog. That old adage out of sight, out of mind is true. Have money automatically deducted from your paycheck or from your checking account and put in a special savings account each pay day or monthly. As time goes by, you’ll be surprised how quickly your savings will add up.And, if you get unexpected money like a bonus, or you end up getting a tax refund, add that money to your savings.  Let your savings be allocated for emergencies only and try to hold yourself accountable for spending that money wisely.
  
  

  Another good point that Ramsey made is reminding us that if you get a tax refund every year, you need to adjust how much is being withheld from your paycheck. Great insight because that would give you more on your paycheck each pay period and you can put that into savings, but be careful because you don’t want to owe taxes at the end of the year.

• Take advantage of your retirement savings plan.  This is also a great way to save money for the future, and many times companies will match your contributions to a certain percentage. That’s free money and it’s part of your compensation, so why not take advantage of the benefit.  But, Ramsey reminds us that first we should focus on being debt free and have our emergency savings in place, before we start tucking away retirement savings.
  
  
• Reduce energy costs. Remember when your parents would say, “turn off those lights, and close that door, we’re not heating the world”. Reducing energy costs is something everyone should do and it’s good for the environment too. Get programmable thermostats, energy saving bulbs and water saving faucets that will help reduce your utility bills. It’s an easy way to save money.
  
  

• Research Insurance policies and cell phone providers – We often become complacent and really don’t complain when our bills increase over time, because we don’t want to endure the hassle of renegotiating or searching for better options.  Many times these businesses tend to increase charges over time, but are willing to negotiate to keep your business if you complain.  That’s why cell phone providers have “save teams” to keep your business.

• Unsubscribe from emails and sell everything you don’t need. Why tempt fate by being subjected to fantastic sales pitches every day.  Ramsey is correct when he says marketers are good at what they do –getting you to buy something you may or may not need.  And, remember it’s always a once in a lifetime deal, or is it?  Do you really need more stuff? Many of us already have closets and drawers filled with stuff we really don’t need or use – so sell it. If you haven’t used it, or really have no need for it, why save it.