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Mohammad Tajib Ali

Apr 22, 2025

02 min read

What are the best ways to save money?

Imagine waking up every morning with a pit in your stomach. What are the best ways to save money? expecting the next surprise expense—a flat tire, a medical bill or a broken appliance. You’re not alone. Millions of individuals live pay cheque to pay cheque, stuck in a cycle of earning and spending, believing that financial freedom is an unattainable fantasy. But what if I told you there was a way to break free? A strategy so revolutionary that it not only changes your bank account, but also rewires your brain. Welcome to the revolutionary way to saving money, in which frugality is about empowerment rather than deprivation. What are the best ways to save money? This is not your grandmother’s advice for clipping coupons or foregoing lattes. Those strategies are useful, but they only address the surface of a larger issue: our relationship with money. True financial independence begins with a mentality shift: understanding that saving is about what you gain rather than what you lose. It’s about creating a life where money serves you, not vice versa. In this book, we’ll debunk common financial myths and look at tactics that seem more like superpowers than sacrifices. From “paying yourself first” to gamifying your finances, these strategies are based on psychology, behavioural research, and real-world success stories. You’ll learn how to automate your path to prosperity, convert junk into income, and even train your brain to prefer saving over shopping. What are the best ways to save money? By the conclusion, you’ll see money not as a limited resource to be hoarded, but as a tool for creating the life you’ve always desired. Are you ready to reinvent the possibilities? Let’s dive in. 1. Pay Yourself First:– The Mindset for Wealth What if I explained that saving money is about what you claim before expenses, rather than what’s left over after payments? This is the cornerstone of “paying yourself first,” a strategy that flips conventional budgeting. You view savings as an unavoidable expense rather than as an afterthought. What are the best ways to save money? Here’s how it works: As soon as you get paid, allocate a portion of your income—ideally between 10 and 20 per cent—to investing or savings. Costs will be covered with the remaining money. This compels you to live below your means while automatically amassing wealth. Its simplicity, which eliminates the need for willpower, is what makes it magical. What are the best ways to save money? Why does it work? Psychologically, we are wired to spend what we have. You’re less likely to overspend if you start “hiding” money from yourself. It’s similar to portioning your meal before you get hungry; you make reasonable decisions ahead of time. Example: Sarah, a teacher earning $50,000 per year, began saving 15% of her pay cheque automatically. In a year, she had saved $7,500 without feeling starved. “It felt like I got a raise,” she told me, “because I stopped wasting money on things I didn’t truly value.” What are the best ways to save money? 2. The 24-Hour Rule:– How to Cut Down on Impulsive Purchases. Have you ever placed an Amazon order after midnight and regretted it the next day? Savings are silently destroyed by impulsive buying. Use the 24-Hour Rule, which states that you should wait 24 hours before making any non-essential purchases over $50. This delay provides a “cooling-off” moment in which reasoning takes precedence over emotion. Most cravings pass within hours, exposing whether you genuinely need the item or are simply seeking a dopamine rush. According to studies, delaying pleasure improves self-control and minimises purchase remorse by up to 70%. What are the best ways to save money? But here’s the twist: Spend those 24 hours researching. Compare pricing, read reviews, and ask yourself, “Will this add value to my life?” Frequently, you’ll realise the item isn’t worth the money, or you’ll discover a cheaper option. Pro Tip: Make waiting into a game. Maintain a list of “saved” purchases and watch it grow. Over time, you’ll reprogram your brain to equate delayed fulfilment with pride rather than deprivation. 3. Automate Your Finances:– The Set-and-Forget Wealth Hack. What similarities exist between gym memberships and savings accounts? Humans are notoriously inconsistent. What’s the solution? Automation. Setting up automated transfers to savings, investments, or debt payments removes the need for discipline. Automation takes advantage of inertia. Once the system is established, you are less inclined to upset it. It’s like putting your money on autopilot as you go about your daily life. Apps like Digit or your bank’s built-in capabilities may funnel modest amounts of money every day, making saving easy. Why it is revolutionary: According to a 2022 study, consumers who automate their savings save three times as much as those who do not. Why? Because they’re less likely to miss a month or “wait until the next pay cheque.” For instance, Jake, a self-employed designer with fluctuating revenue, saves 10% of every payment he gets by using automation. “I never touch the money, not even during lean times. It seems as though it wasn’t mine at all. 4. The Envelope System:– Money Is Everything In the era of credit cards and tap-to-pay, cash seems outdated. One of the most effective budgeting strategies is still the envelope system, which divides money into spending categories like groceries and leisure. This is the reason. The “pain of paying,” a psychological phenomenon where spending cash feels more authentic than using a credit card, is brought on by physical money. You stop spending when the envelope is empty. No guilt, no overdrafts. What are the best ways to save money? How to Start: 1. Make a list of your monthly expenses (such as dining out and petrol). 2. Assign cash to each category. 3. Take the total and split it into envelopes. Bonus: To make the procedure more enjoyable, use colourful envelopes or name them with inspiring quotations (“This cash funds your future vacation!”). 5. Gamify Your Savings:– Turn Scarcity Into Fun. Who says that saving must be boring? Gamification transforms frugality into an engaging task. Apps like Qapital let you set rules like “round up purchases to the nearest dollar” or “Save $5 every time you hit the gym.” What are the best ways to save money? Alternatively, make your own game. – The No-Spend Week: Go seven days without purchasing non-essential items. – The $1 Challenge: Save every $1 bill you receive in change. – Vision Board Rewards: Assign savings goals to images (for example, a tropical beach for your vacation money). Why it works: Gamification plays into our desire to accomplish. Each modest victory generates dopamine, rewarding positive behaviour. Saving gradually becomes addictive. What are the best ways to save money? Real-life Win: Maria cleared off $8,000 in debt by turning her budget into a board game. “Each $100 saved brought me closer to ‘Financial Freedom’ on the board. “It felt like a quest!” 6. Invest in You:– The Ultimate ROI. Saving is more than just accumulating cash; it is also about investing in skills that will increase your earning potential. Learning coding, public speaking, or negotiation can lead to promotions, side hustles, or professional pivots. Consider this: A $500 course that leads to a $10,000 rise provides a 1,900% return. In comparison, a savings account pays 1% interest. Action Steps:- Assess your strengths and shortcomings. – Set a monthly “self-investment” budget (even $20 adds up). – Use free resources (Coursera, YouTube) or pay-for services such as MasterClass. What are the best ways to save money? Mindset Shift: Think of education as an asset, not an expense. As your talents improve, so will your ability to save and earn. 7. Declutter and downsize:– Less Stuff, More Freedom. Minimalism is more than simply a trendy aesthetic; it’s also a wealth-building approach. The average US family contains 300,000 objects, many of which are unused. Selling clutter on Facebook Marketplace or Poshmark provides quick cash while lowering storage costs and mental congestion. What are the best ways to save money? What about the true payoff? You’re gonna buy less in the future. Decluttering reveals how much money we spend on impulsive purchases. When every purchase involves a “Does this spark joy?” assessment, you become deliberate. What are the best ways to save money? Example: Tom and Lisa downsized their flat by selling $2k in obsolete devices, saving $500 per month. “We realised we were paying to store things we didn’t even like,” says Tom. What are the best ways to save money?