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Money Matters: Top Five Tips for Saving

September 13, 2011
I talk about shopping a lot, but I definitely have experience saving as well and thought I should share that side too.  In most years (non-grad school years) I’ve saved over 50% of my net income and this has enabled me to pay for my own wedding, support myself through my last year of college and all of graduate school, and contribute financially towards my family.  I have been able to spend my money on fun things that matter to me – handbags and trips across the world of course top my list.  I’ve also managed to build a large cushion that would enable me to cover rent for a a few years (but having money in savings vs. investments, like real estate, is another post!)

Izak Zenou is awesome – isn’t this a stylish woman in charge picture?

Here are the top 5 ways that I’ve managed to save.
1. Save every chance you get
Where can you save a few dollars a day?  Start with the small manageable things: bring lunch at least once a week instead of eating out, think about taking public transportation or carpooling, and look for coupons when you shop in-store or on-line (my links at the right side help you save almost every single time you shop online!).  Those few dollars definitely accumulate over time and can be put towards your nest egg (because it’s always good to have extra savings!)

2. Track your spending (esp. your cash spending)
It’s really important to be aware of your spending.  Do you know how much you spend on food every month?  What are your entertainment expenses?  It takes more work to note down all your expenses, but the insight into your money management is totally worth the effort.  We’ve used quite a few money management softwares and are now using both ibank and mint.com to track our foreign and US expenses, respectively.  Once you know how you are spending your money, you can start scaling back or reallocate your spending to categories that matter more (e.g. if you love shopping, but spend a lot on eating out, why not cut down your dining expenses so that you can put it towards saving and shopping!)

3. Budget for the short and long term
Budgeting isn’t just for the hares, it’s for the tortoises as well.  Make a budget and try to stick to it.  But don’t deprive yourself of spending or else you might unexpectedly splurge way past your budget.   Budget what you feel comfortable spending in different categories and know that it’s ok to splurge a little in one month as long as you save at other times.  Just remember how it effects your longer term savings goals. *Ahem* so more than one Chanel reissue a year may be a problem if your shopping budget is $100/month!
Remember my ideal wardrobe list (shopping for the long term, not just because you like something?)  Saving and spending are both long term issues and should be planned accordingly.

4. Prioritize payments
What are your regular expenses every month?   You likely have some form of housing expense along with a transportation expense as well.  This may be coupled with student loans and credit card expenses.  Pay off the charges with the highest interest rates first (e.g. your credit cards, unless you have a 0% trial interest rate).  Remember that expenses like the interest on your student loans may be tax deductible so it’s ok not to pay that all at once.

5. Live within your means
A credit card shouldn’t be an excuse to spend more than you have.  Some people limit themselves to spending only with cash (it’s a good savings tip and reminder to “spend what you have”).   Sure you may want to live in a larger apartment or have the newest pair of Louboutins, but can you realistically afford it?  Over time, your income will vary (hopefully to your benefit) and you should remember to adjust your spending accordingly.

Hope this money matters post helps!  If not, I’ll be back to fashion and design posts tomorrow anyway 🙂

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  • jos xx September 13, 2011 at 08:59

    thanks for posting this! all these tips def help!!! i spend alot in shopping even though i try to buy stuff that is either on sale or cheap! saving is the most difficult thing to do i think!

    jos xx

  • Plami September 13, 2011 at 09:15

    It’s really hard for me to save money… I am one from those people who just cannot resist the temptation of shopping 🙂 Thank you for these great tips! Be sure I’ll try to follow them!

    XoXo
    Plami

    http://www.fashionthrill.com/

  • Chanelle September 13, 2011 at 10:20

    My number one tip is to always leave cash and card at home. (unless I’ve planned to buy something specific like petrol or bus tickets, etc) Works every time!

  • KizzyDoll September 13, 2011 at 11:27

    Great tips! I’m a good shopper really!! I try my best. xx

  • Jessica September 13, 2011 at 11:37

    Whenever I get a paycheck, I always put a certain dollar amount into my savings account immediately. Once it’s in savings, I feel way too guilty to transfer it back to checking, so I don’t over-indulge! I recently received a raise (whoo hoo!) and I’ve put nearly all of that extra money in savings each month. (Well, you know, after splurging on a new pair of shoes as a reward!)

  • Tanvi September 13, 2011 at 11:49

    Great tips!!! #5 would be the most important one for me!!!

    ♡ from © tanvii.com

  • BigAppleNosh September 13, 2011 at 12:09

    These are great tips! Thanks for posting!

  • THE ALTERNATIVE WIFE September 13, 2011 at 13:36

    Fabulous tips, darlin! And I just love that illustration! xoxo

  • Kim September 13, 2011 at 13:45

    Great post! As you can probably guess, I am a saver. Luckily, my husband is a saver, so we balance one another out. We are fortunate to have two solid incomes and no children at the moment, so we can justify my clothing splurges and our joint vacation splurges for the time-being. Recently, we’ve talked of buying a home, so I think things will be changing around here. I don’t intend to deprive myself, though, so these tips will come in handy for sure!

  • Heather September 13, 2011 at 14:39

    Great advice! It sounds like you and I have a very similar perspective when it comes to saving.

  • Shia September 13, 2011 at 15:18

    Great post! About 2 years ago I wised up and looked at my bank statements. I charted out where all my money was going and made some cuts to money I was basically just flushing down the toilet. It feels so liberating to put money in your savings account!

    ♥ Shia

  • Katie September 13, 2011 at 15:21

    Fab tips that everyone needs to remember 🙂

  • Jennifer Fabulous September 13, 2011 at 16:09

    These tips are awesome. I wish someone had told me these five years ago! LOL!

  • the nyanzi report September 13, 2011 at 16:46

    best post i’ve read all day by a mile!

  • Oh to Be a Muse September 13, 2011 at 17:35

    totally love these 5 tips. gotta budget for both the short and long term.

  • amy b.s. September 13, 2011 at 17:51

    great tips. i’m pretty good at saving, and lately have just been having a terrible time!

  • Dirt On The Rocks September 13, 2011 at 18:37

    These are great tips. I have problems saving and I definitely will write this down in my organizer to remember this at all times.

  • {The Perfect Palette} September 13, 2011 at 18:58

    great tips – thanks for sharing!

    xo, chrissy

  • FashionJazz September 13, 2011 at 21:48

    Loved ur tips babe! Xx

  • Punctuation Mark September 13, 2011 at 22:29

    i’ve been on saving for so long it’s not even funny anymore… haha!!!

  • Bravoe Runway September 13, 2011 at 23:24

    I think you did a great job outlining your 5 tips for saving money. I definitely keep track of my spending by saving all of my receipts and totaling them at the end of the month. I set a realistic budget, I know if I gave myself $100 for clothes a month it’d never work! I’m going to read your tips on acquiring your dream wardrobe as I see yet…a Kelly bag 😀 😀 😀 😀 Can you tell I am kind of obsessed with them?? lol

  • Katherine September 13, 2011 at 23:26

    I love posts like this because they are a great reminder to me – thank you for writing this, and I love all the emphasis on save, save, save!

  • honey my heart September 14, 2011 at 00:12

    great post! i tend to save sparingly and focus on the short term rather than the long term. it’s time to get financially fit!

  • A Heel in Mint September 14, 2011 at 00:29

    Agree with this post. 🙂

  • Bonnie September 14, 2011 at 00:41

    I definitely need to listen to this advice. I can’t save. I think I am fundamentally incapable of saving. Stupid shopping compulsion.

    http://www.glamkittenslitterbox.com/
    Twitter: @GlamKitten88

  • Anna of IHOD September 14, 2011 at 03:24

    These are fantastic tips.
    We recently have started to cut as much student loan debt as possible. Less spending, no credit cards, and carrying cash. It has helped tremendously!

  • Karima September 14, 2011 at 12:07

    I hate making impulsive purchases but i still get tempted

  • abeautifullife.ca September 14, 2011 at 17:14

    good advice! it’s nice to know there are concrete steps we can all take to save bit by bit. All the more important in these times of economic downturn.

  • Blue September 14, 2011 at 21:04

    Thank you for this great post! I already record my spending, but I’ll definitely take the other advice!

  • Mary Lane September 16, 2011 at 14:47

    Great tips! it’s always good to be reminded of these things, especially in my case the one about tracking how much cash you spend… if it’s not coming directly out of my bank account it’s like I forget it ever happened!

    http://www.stylish3.com/marylane

  • Kimberlee September 17, 2011 at 17:29

    I would buy as much as you can with cash because charging everything on your credit/debit card doesn’t physically show the money leaving your wallet. It definitely breaks my heart when I start with $100 and by the end of 2 days it’s gone, that wouldn’t happen with a debit card.

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