We all have goals in life. This could include learning a new skill, getting healthier, or achieving financial freedom. Despite this, the constant busyness of modern life can make these goals seem out of reach.
The reason? In today’s world, where possessions and self-improvement trends are abundant, it’s easy to get caught up in a cycle of accumulation and pursuit. However, what if there was a better way to achieve financial independence and personal growth?
Fortunately, there is! With a few simple yet powerful habits, you can streamline your personal growth journey and save money simultaneously. To get you started, here are 26 tips:
1. Know Where Your Money Goes
To save money, you must first understand how your money is currently spent. Often, people underestimate how much they spend on impulse purchases and unnecessary subscriptions. Here are some tips for gaining financial clarity:
- Track your expenses. Keep a careful record of every dollar you spend for one month. You can use budgeting apps, spreadsheets, or even a simple notebook to keep track of your spending. Analyze your expenses, including rent, groceries, and entertainment, to determine where you can cut costs.
- Review your bank statements. Keep an eye out for recurring charges that you may have forgotten about. An example would be your gym membership, which you no longer use.
2. Pay Yourself First
Having your checking account linked to your savings account allows automatic transfers to take place. With this “pay yourself first” approach, you prioritize saving before spending, and having these transfers scheduled on payday or soon after will make saving an effortless habit.
3. Embrace the Power of Budgeting
When it comes to budgeting, you have several options. A good starting point, however, might be the 50/30/20 rule, in which 50% of what you need, 30% of what you want, and 20% of what you save.
Regardless of the budgeting method you choose, allocate specific amounts to different categories and track your progress throughout the month. With a budget, you are able to take charge of your finances and make informed spending decisions.
4. Set Up Recurring Payments
By setting up automatic bill payments through your online checking account, brokerage account, or mutual fund, you can easily save time and money. Billers simply request your bank account number and routing number so the payment can be automatically drafted on the due date. If you want to make automatic payments with a credit card, you will need to give the biller your credit card information, including the number, expiration date, and CVV.
Among the benefits of automatic bill payments are ease of payment, the ability to avoid late payments, and the possibility of improving credit scores. You may even qualify for a discount if you sign up for autopay.
For irregular expenses, though, ensure that you have a sinking fund.
5. Prioritize Needs Over Wants
In order to avoid financial instability, you should prioritize needs over wants. In addition, this can help you maximize your income. To help you prioritize your needs over wants, here are a few tips:
- Understand your needs. A person’s basic needs, such as food, shelter, and medical care, should be taken care of first.
- Review your budget. Your budget should start with your needs and then move on to your wants.
- Be mindful of spending. Place a higher value on experiences and relationships than material possessions.
- Group your wants. Make a list of your wants, and move the ones you can’t afford to the next month.
Just one more thing. Treating yourself occasionally is okay, but prioritize saving for long-term goals.
6. Check Account Balances
To see how your money is being spent and look for signs of fraud, it’s essential to check your account balances at least once a month. However, some suggest you check your accounts once a week or twice. Ultimately, the more you use your account, the more often you should check it.
Overall, maintaining regular and consistent spending habits will help you stay on top of your spending and eliminate surprises.
7. Master the Art of DIY
If you want to save money, you should first consider Do-It-Yourself methods before outsourcing tasks. Start by learning how to do basic repairs. You can learn this by taking a class, watching a video tutorial, or borrowing tools from a friend, neighbor, or family member. You can fine-tune your skills by tackling small projects, such as fixing a leaky faucet or painting a small room.
It’s important to remember that every DIY project you take on saves you money! According to the U.S. Census Bureau American Housing Survey (AHS), a professional-grade home improvement project costs $6,352, while a DIY project costs $2,502.
While some DIY projects are cost-effective, not all are. For example, you could tile your floors yourself for cheaper than the pros charge. The savings are often smaller than expected because of the additional equipment, skill, and time needed.
8. Organize Your Receipts
By organizing your receipts, you can simplify tax preparation and improve the accuracy of your accounting books. Additionally, receipts can be useful for:
- Resolving disputes
- Tax deductions
- Keeping track of supply costs.
- Tracking tax liabilities
- Providing proof to the IRS in case of an audit
- Employee expense reimbursement
- Identifying spending patterns
If you want to reduce clutter, you should organize your receipts electronically. You can scan them and save them to Google Drive or use an app such as WellyBox. I like to take a photo of my receipts, then nothing can be changed on them. I label them, and they are easy to pull up at tax time.
9. Embrace Minimalist Learning
You don’t have to buy every self-help book or course you see. You can find various free or low-cost resources online and in libraries. Learn new skills and broaden your horizons by listening to podcasts, YouTube channels, and blogs from credible sources.
There are also free or low-cost online communities that provide support and inspiration for personal growth.
10. Track Your Small Victories
Keep track of your progress, whether you stick to your budget or check your accounts once a week.
As we celebrate small accomplishments, we are more likely to accomplish larger goals in the future. People who tracked their small achievements every day improved their motivation, according to research by Teresa Amabile from Harvard Business School.
By recording your progress, you become aware of your small accomplishments, which boosts your confidence. How come? When you accomplish something, no matter how small, the neurotransmitter dopamine boosts your mood, motivation, and attention. As a result, you are encouraged to do the activity repeatedly.
11. Become a Savvy Shopper
In our consumerist culture, we are constantly tempted by impulse purchases. However, you can become a more conscious shopper by following these steps:
- Unsubscribe from marketing emails. When you are constantly exposed to deals and discounts, you may end up spending more than you should. During moments of weakness, avoid browsing online stores and unsubscribe from tempting marketing emails.
- Embrace the power of “no.” You need to learn how to politely decline impulse purchases. Are you really in need of it? Can it wait?
- Shop with a list and stick to it. By planning your shopping trips and creating a list of necessities, you can avoid impulsive additions to your shopping cart.
- Embrace secondhand. Consider buying pre-owned items whenever possible. You can find great deals on clothes, furniture, home decor, and more at thrift stores, consignment shops, and online marketplaces. Often, you can find quality at a fraction of what you would pay at a retailer.
- Go generic. You can save a lot of money by buying store-brand or generic products instead of name brands. If you use recipe ingredients, you probably won’t notice the difference.
- Invest in quality. Generally, investing in well-made pieces rather than cheap, trendy pieces that will quickly wear out is better. This may mean buying fewer items but spending more upfront.
- Become a bargain hunter. Always compare prices between different stores and brands. Use coupons, loyalty programs, and discount apps. If you are making a larger purchase, research thoroughly and wait until a sale is on.
12. Treat Yourself (Without Guilt)
Don’t deny yourself small pleasures that make life more enjoyable by depriving yourself of them. Adding a treat yourself category to your budget is one way to accomplish this. Whether it’s a yoga class, guitar lessons, a book, or premium coffee beans, you can use this money as you wish.
13. Negotiate Like a Pro
Car dealerships aren’t the only places where you can negotiate. You can negotiate almost anything: cable bills, phone contracts, credit card rates, and even gym memberships. To get started, here are some tips:
- Do your research. When negotiating a service or product, you should know the average price or typical deal offered.
- Be polite but firm. It is important to maintain a respectful yet assertive attitude. Let them know you’ll switch providers without a better deal.
- Be prepared to walk away. Don’t hesitate to end the conversation if the offer isn’t satisfactory. When faced with the possibility of losing a customer, companies often budge.
14. Give Back to the Community
Giving back, whether through donations or volunteer work, can help you grow in many ways. It will also enrich your life and connect you to your local community. In addition, it can open your eyes to ideas and people that can inspire you for the rest of your life.
In the end, helping your community gives you the chance to grow as a person and learn more about your place in the world.
15. Take Advantage of Free Entertainment
In addition to having fun and saving money, there are many free and low-cost activities you can engage in to connect with other people. Here are a few ideas:
- Discover free cultural events in your city.
- Find free books, movies, and events at your local library.
- Take a trip to a local museum or gallery.
- Bring friends, family, or neighbors together for a potluck dinner or game night.
- Get in touch with nature by hiking or picnicking in the park.
16. Find Your Free Growth Community
There is a supportive community for nearly every niche of personal growth online — and sometimes offline as well. Search for Facebook groups, forums, and subreddits related to your interests. There is, for instance, a Facebook group called Frugal Living Tips and Tricks where people share their frugal living success stories.
The best part is that it’s free; you’ll gain valuable insights, share your experiences, and get motivated.
17. Declutter for Cash
Make it a habit to go through your stuff regularly. You can make extra money and free up space by selling, donating, or recycling what you no longer need.
Moreover, decluttering has additional benefits, including:
- You can reduce your stress and achieve a sense of balance when you declutter.
- Since decluttering reduces stress, you’ll also sleep better.
- The less you have to clean, the more free time you will have. This also saves you money, as you won’t waste it on items you can’t locate.
- Getting rid of clutter can make you more productive and creative.
- As clutter accumulates, it can become a tripping hazard.
- It is possible to make your space more visually appealing by decluttering.
- You can feel more grateful when you declutter.
As well as helping you feel more in control of your environment, decluttering can also increase your sense of accomplishment and self-efficacy.
18. Cook More at Home
Stop ordering takeout and eating at restaurants! Healthy meals can be prepared at home at an affordable price. Plan your meals based on what’s on sale and look for recipes online. If you’re short on time, you may want to consider preparing meals in advance or freezing leftovers.
Additionally, you’ll improve your culinary skills while saving money.
19. Invest in Experiences, Not Things
A life filled with experiences creates lasting memories and enriches your life in a way that material possessions cannot. You can plan adventures, take classes, or volunteer. Besides saving money, you’ll gain new perspectives and form deeper connections.
20. Watch Out for Lifestyle Creep
Keep a close eye on your spending to avoid lifestyle creep, where your expenses rise along with your income. To boost savings, it is important to keep fixed costs under control.
21. Debt Freedom is Possible
Do you feel overwhelmed by debt? You’re not the only one!
The average American carries a heavy burden of debt. As of the second quarter of 2023, the average American owed $103,358 in consumer debt, according to Experian. That number breaks down to $241,815 in mortgage debt and $23,317 in non-mortgage debt, which includes credit card debt, student loans, auto loans, and personal loans.
Due to this, unexpected expenses, such as medical bills, can pose a serious financial threat. Additionally, juggling multiple monthly payments can obstruct other financial goals, like building an emergency fund or saving for retirement.
The good news? You can manage your debt with a customized plan. Here are three popular strategies for reducing or eliminating your debt:
- The Snowball Method. Pay your smallest debt off first, then make minimum payments on everything else. As soon as the smallest debt is paid off, roll over the extra payment to the next smallest debt. You can use this quick win as a great motivational tool.
- The Avalanche Method. Make your highest-interest-rate debt your priority first, and make minimum payments on everything else. When the first debt is paid off, direct the extra payment toward the next debt with the highest interest rate. This strategy will save you the most interest charges in the long run.
- Debt Consolidation. Consider consolidating your debts into one account with a lower interest rate. Your repayment process will be simplified, and the temptation to take on more debt will be reduced. Once this consolidated debt is fully paid off, avoid falling back into the debt trap.
Implementing these strategies can simplify your finances and help you achieve your financial goals.
22. Challenge Yourself with “No-Spend” Days
Implement “no-spend” days to regularly avoid unnecessary purchases. Consider free activities such as visiting friends, reading a book, or exploring local attractions.
Alternatively, you can challenge yourself to devise creative ways to have fun without spending any money. In addition to saving money, this practice will make you more conscious of what you spend.
23. Mind the Thermostat
You can significantly reduce your energy bills by adjusting your thermostat. To save up to 10% annually, the U.S. Department of Energy suggests lowering it in summer and raising it in winter by a few degrees. To manage temperature changes, dress in layers.
24. Maintain a Money Mindset Journal
Think about your relationship with money and how you feel about it. Determine if you have limiting beliefs holding you back, and take steps to overcome them.
For example, you may have a scarcity mindset.
Limitations like this can trap you in a perpetual state of lack, believing you’ll never have enough money. You can challenge a scarcity mindset by focusing on what you have instead of what you lack
25. Revisit Your Core Values
Your core values guide your life. By using them, you can make intentional financial decisions that are aligned with your values. You should reassess your values every year and update your financial plan accordingly.
26. Meet with Your Financial Planner
Meet with your financial planner annually to discuss your goals and adjust your plan as needed. Keep your planner informed about life changes that may impact your finances. As an added perk, this could increase your financial literacy.
FAQs
How can simplifying my life help me grow personally and save money?
With a clear sense of what matters to you, you can reduce stress, gain clarity about your goals, and have more time and money available for personal development and financial security.
What habits can help me simplify my personal growth journey?
- Focus on a few key goals. Be careful not to overwhelm yourself. Simplify your growth plan by choosing 2-3 goals that align with your values.
- Embrace minimalism. You can learn and experience more by decluttering your mental and physical space.
- Develop a daily routine. You can avoid decision fatigue by prioritizing growth activities.
- Practice gratitude. It is important to appreciate what you have to cultivate a positive mindset for growth.
What habits can help me simplify my finances and save money?
- Track your spending. The first step to controlling your money is being aware of where it goes.
- Create a budget. Spending limits should be realistic, and savings goals should be prioritized.
- Automate your finances. Set up automatic savings and bill payment transfers to avoid missed payments and impulse spending.
- Embrace frugality. Rather than focusing on material possessions, enjoy experiences and simple pleasures.
Can I use saved money to support my personal growth?
Absolutely!
You can save money to take courses, attend workshops, travel, or invest in self-care activities.
Image Credit: Karolina Grabowska; Pexels
