Managing finances can be challenging, especially in a world where we’re bombarded with ads that make us feel like we’re missing out on the latest trends. We can fall victim to the idea that we need to constantly spend money beyond our means to have fun or enjoy life. But that’s entirely untrue.

Spending wisely is essential as wages stagnate and inflation continues to rise. What can you do to feel less deprived and more empowered to live in abundance? Change your mindset by thinking of spending less not as deprivation but as liberation. Saving money and budgeting can be a fun adventure of its own, forcing you to think outside the box to enjoy all life has to offer.

Every dollar you save today safeguards your future and paves the path to financial freedom and long-term success. This shift in perspective makes savings and investments an engaging practice rather than a sacrifice, and we’ll show you 13 simple ways to do just that.

1. Make Automation Your Friend

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How do you get ahead and stop living paycheck to paycheck? (Or worse, in debt?) Save. And making it automatic is the way.

It’s a smart move to set up automatic transfers to your savings account each payday. This way, you won’t have to put extra effort into saving, and those small amounts you save with every payroll will turn into a hefty sum without you realizing it.

2. Embrace Percentage Rules

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Setting hard and fast rules makes it easy to stay inside the lines of spending. (No gray areas here.)

If possible, implement a rule that you’ll put 50% of your income towards needs, 30% towards wants, and 20% towards savings. This will help prevent needless spending on non-essential items.

3. Use Apps to Track Spending

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Do you know where your money goes? No one lives on a tight budget without having a plan in place. Otherwise, you’ll find yourself asking, “Where did it all go?” at the end of each month.

If the answer is “No”, then make adjustments to eliminate that expense. Track your spending with a budgeting app like Mint or YNAB to get a very clear answer on where you might be spending and wasting too much money.

4. Go for Pre-owned Over Brand New

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Purchasing and using pre-owned items for vehicles, clothing, furniture, and electronics is not a bad thing and can save you some serious cash. When you use pre-owned items, you are not only saving yourself money, but you are also contributing to resource conservation- a noble cause.

5. Ditch Expensive Entertainment

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Who says being entertained has to be expensive? I’d argue the free stuff is even more fun!

Instead of spending hundreds of dollars for a meal in a fancy restaurant, go for a hike, a picnic, or even a free visit to the museum on an open day. Try switching to low-cost alternatives, and you may find them more entertaining!

6. Use Online Coupons and Rebates

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Technology can become your friend for saving money in all kinds of random places. Apps and web browsers like Ibotta and Rakuten can earn you cashback with the click of a button. Also, explore price-comparing and couponing websites and browsers such as PayPal Honey that provide price comparisons and value for money by hunting for the best deals from 30,000+ sites.

7. Enter the Investment Arena and Watch Your Savings Grow

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After becoming a conscious spender, try generating wealth through investments. Remember, even small sums invested early can snowball into significant gains over time, thanks to the power of compounding

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Albert Einstein once said: “Compound interest is the eighth wonder of the world; he who understands it, earns it… he who doesn’t…pays it.”

Compounding Opportunities, such as investing in stock markets, bonds, real estate trusts, and mutual funds, are all around us. So, don’t miss a chance the next time you come across any such options.

8. Learn About Investing

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Not sure how to start investing your savings? We have a few beginner-friendly recommendations below, but feeling informed is critical.

Learning more about investing is an important first step. Read books such as “The Intelligent Investor”, listen to podcasts like” We Study Billionaires”, and seek guidance from qualified financial advisors. Remember, knowledge is your savior against financial pitfalls.

9. Try Using Robo Advisors

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For a beginner-friendly, hands-off, and low-cost investment option, try robo-advisors. These automated platforms, available with many investment companies ranging from Vanguard to Acorns, manage your investments based on your risk appetite and financial expectations. Perfect for preoccupied investors and those looking for affordable investments.

10. Buy Index Funds

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Warren Buffet, a legendary investor, recommends index funds as a savings haven for the later years of life. These are a good option for long-term investors who want broad market exposure and low operating expenses.

11. Celebrate Your Progress

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Living within your means is a monumental achievement. Celebrate it! Then, reassess and carry on.

Spending adjustments require you to make compromises for a long time. Keep track of your progress, celebrate your milestones, and adjust your strategies according to changes in your lifestyle.

12. Remember What’s Most Important

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Remember, financial well-being is more than just making money. Prioritize your health and self-care, avoid financial stress, and enjoy the journey! Building wealth should be an intellectual and transforming experience.

13. Be Patient and Share Your Knowledge

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As these hacks are just a head start, remember that financial wellness is a long process. So, don’t stop improving. By being successful, you can also inspire others to embrace savings and break free from the loophole of wasteful spending.