“The safest way to double your money is to fold it over once and put it in your pocket.”

- Kin Hubbard

Many people don’t have a lot of extra money and they use pretty much everything they get and a bit more (taking short term loans like pikavippi or pikalaina from www.pikavippi.fm or www.vippisivut.com, which is not wise). Okay, the fact is that we are not going to get our money with us when we die, but I think it’s much less stressful to always have enough money on your bank account to take a break from your day job and go traveling for six months, for example.

I thought it would be useful to list a few tips that can help you to save money quickly. It doesn’t really matter what your salary is – if you just live by your means and decide to save money, it is more than possible to save enough money during the next few months to have a break and spend a few months abroad, if that’s your dream.

At least it is mine, so let’s get to the seven great tips for saving money quickly:

1. Spend Less

Oh my.

I know it is hard.

It sounds so easy but there are always new gadgets (for guys) and shoes (for girls) to buy, so what should you do in order to really spend less?

First you have to know where your money goes. Collect your receipts and bills for one month and find it out. When you know where you spend your money, start reviewing your spending habits and try to find ways of getting rid of unnecessary costs.

Do you really need to be on the phone with your best friend three times a day, or could you talk via Skype or actually meet more often?

How about the Cappuccino you buy every day during the lunch break? 4 dollars a day equals 1460 dollars per year!

Do you really need to have newspapers and magazine delivered to your home? At least I don’t want to pay for something I can read online or at work. You can also use library instead of buying books or music.

There are literally hundreds of ways to save a little money, and when you count them all together, it’s not little money you are saving, but a lot of money that you can use for something that is truly important for you.

2. Budget

If you don’t have a budget, it’s quite difficult to know where your money goes. Every company must have a budget to limit spending, and so do you.

Count how much you have money coming in and then count how much money is going out. After that you should be able to decide how much you want to save each month and stick to it.

If you have counted that it is possible for you to save 500 dollars a month, you should have a savings account and automated payment after each salary, so that the amount you want to save is deducted from your main account right after you get your salary. If you never see it, it’s more difficult to spend it.

3. Buy used

More than often a used item is as good as a brand new one, but costs heck of a lot less. Especially when it comes to cars (OK, you shouldn’t buy a car at all if you care about your money), and electronic equipment, a used item is a lot cheaper but the condition can still be perfect.

If you really need to buy something, search eBay and other similar sites online to find great deals for used items. It’s almost the same as you would get a 50% discount for every item you buy. How great would that be?

4. Buy bulk

Can you shop and buy in bulk? When you prepare your meals in advance, prepare more food when you cook (use your fridge), and buy generics, you can save a lot of money.

Also, when you spot a good discount offer for some product that you use a lot, and that is easy to preserve for a long time, such as orange juice or UHT milk, you should buy a lot of it at once and fill your cupboards with it.

Remember always to check the price by looking at price per weight unit or volume unit – not per product.

5. Do price research

Especially when you are buying something more expensive, do a lot of price research before you buy. It only takes you a while but can save you hundreds or even thousands of dollars, depending on what you are buying.

It’s so much easier to save 100 dollars when you buy a new bike, for example, than it is to earn 100 dollars by working. Saved money is worth as much as earned money is.

6. Get rid of debt

Debt is one of the biggest scams that most people don’t realize. Compounding interest rate can either work for you or against you. It works for you when you save money and invest it for example in stocks, and it works against you when you have debt.

If you don’t have enough cash to buy something, then you probably should save first – otherwise you are paying a big premium just because you are not patient enough.
Mortgage is in my opinion the only reasonable debt, but even then you should try to keep the amount of debt as small as possible, and try to buy the apartment when prices are not in a bubble.

7. Eat in rather than out

It’s so easy to go to a restaurant, where someone else prepares the food for you and all you have to do is sit, eat, and pay, but eating out regularly can be one of the biggest expenses in your life. Good restaurants are quite expensive, and average restaurants often can’t always compete with a good, affordable home made meal.

Be wise and prepare your food yourself. You can make it your hobby and a little daily challenge to prepare an amazing and delicious meal that doesn’t cost much.

If you liked this article, you can thank me by sharing it with your friends for example in Twitter, Facebook, and Digg. Thank You!

Related articles:

1. Money, Debt, and Happiness
2. How to Get Rich by Not Chasing Money
3. What Would You Do If You Didn’t Have to Work for Money?