Purposeful . Profitable
6 Tips to Save Money at Home Using Profit First Principles
Sabrina Pelech, Profit Catalyzer
7 MIN READ
Are you interested in saving more money? lets face it, pretty much everyone wants to save money these days. But are you tired of hearing the same old tips and tricks about drinking one less coffee and swapping your vacation for a staycation?
While these are great ideas there is a better way to save money then drastically changing your behavior and even skipping the things you enjoy. Before we dive in to this revolutionary idea lets review some of the age old techniques that could help you save some extra cash.
“A financially healthy business is a result of an economical business owner spending money wisely on products and services that help achieve their goals vs a cheap business owner that makes decisions solely on price.”
1. Don’t buy on a whim
How often do you find yourself wondering around the store and glimpse over at the shelf and go, I need that? Suddenly you find yourself in the checkout lane and before you even realize it, you’re the proud new owner of a BBQ set.
You’re not alone, many of us shop on a whim, it’s the new shinny object syndrome. We see something we like so we buy it, with very little thought of whether we can afford it or even if we need it.
It’s too easy to justify by saying this will look great in the living room or office, or this will make my task so much easier. But did you take the time to review what you were buying and ask yourself, how often am i going to use it? How much time will it save me? will it even fit in the house?
The more time you take to consider the purchase and how much really want to spend on such a purchase will help you make better financial decisions.
2. Shop Methodically
How many times have you waited until the last minute to buy holiday gifts? I get it, time flies by one moment you’re getting ready for Memorial Day and then suddenly, its 3 weeks till the holidays.
You get excited thinking about the upcoming festivities, only to be shaken by the realization you didn’t do your holiday shopping. So, you get in the car rush over to the stores and get whatever is still left no matter the price. Don’t be embarrassed we all have done this.
However, a little bit of pre-planning and shopping throughout the year can save you a bundle on holiday gifts. By taking advantage of the countless sales throughout the year and avoiding the holiday price hikes. Plus, the added benefit of the layaway programs so you don’t even have to store the gifts at home what to lose.
3. Staycation instead of Vacation
There is no question, vacations can be a blast, and everyone needs a vacation from time to time. However, instead of always picking faraway destinations that require plane tickets and extensive traveling and hotels. Think about staying local. Finding a place 2-4 hours from the house can be driven to in an afternoon. Not only will you be saving money on your vacation, but you may even be surprised at how much there is to do locally.
You may never have thought about vacationing locally before and may be surprised at all the things there are to see close to home. After all, people are vacationing to your home area, so why aren’t you?
Besides, who wants to stand in all those airport lines anyway. The money you saved from flying and taxis you might even be able to extend your vacation a day or two and still save money.
4. Paying for Unused Services
When is the last time you went through your expenses and purged what you don’t need any more? If you are like me, you will most likely find recurring charges from 4 years ago for a product you didn’t even know you had access too.
But it may even be things you look at every day and pay no attention too. Are you still paying for a land line you don’t even know the number too? Today everyone has a cell phone do you really need the landline?
You’re probably thinking well my phone company said i get a savings on my services by bundling Internet and phone. which is great after all who doesn’t like a deal. But did you ever stop and ask how much your internet will be without the land line?
You may realize that the added cost of the internet over the year is less than paying for both the phone and internet. Reviewing your credit card statements on a regular basis can go along way to cutting on wanted expenses.
5. Paying for activities and leisure
It’s amazing at how much money we are willing to spend to have fun. The weekend rolls around or we get a day off and we think let’s go to the mall or out to a movie. Have you ever wondered what there is to do locally that does not cost all that much, or better yet may even be free?
You may not even realize that you live 30 minutes from the highest rated hiking trail or community garden. perhaps your town, county, or local organizations are holding festivals or activities that can be quite enjoyable, and nice change of pace from the local mall.
If you make the time to look for it, you’ll find plenty of entertainment that is affordable or free of cost. Check your local newspaper or community bulletin boards. Sometimes just taking the time to think about how and where you are spending your money will really help you start to save daily.
You will also be surprised to find out how much money you can save on food, entertainment, shopping and other expenses simply by researching alternatives.
So, are you ready for this new idea that can save you money without drastically changing your lifestyle? well here you go.
That’s right Profit First, the same methodology you applied to your business that allocates a portion of your revenue to various accounts can be used personally too. Image how much money you can save if you put away 10%, or even just 5% of your income.
To be most effective put your personal profits into a separate account, better yet at a different bank than your checking account, just like you did for your business. After just a couple of weeks or months, you’ll discover that not only do you not miss that money in your daily life but when you check your personal profit account you will be shocked at how much money you managed to saved.
This will naturally cut back on your spending and help you save money. If you are not sure what profit first is or wan to learn how to implement it checkout our Blog Post “What is Profit First”