Many people claim not to have any money, I hear it all the time. Yet when I start examining their lives compared to mine, I see no reason why they too shouldn’t be able to save money.
Saving money doesn’t have to be as difficult as people make out that it is. I find that often the biggest obstacle to people saving money, is themselves. It’s a mindset problem, you convince yourself that spending the money on this or that won’t hurt the budget and that it is a good idea – “Fred Bloggs down the road has one, I’m going to get one too”. Before you know it, you have a heap of crap cluttering your house and no money left in your bank account.
There are literally thousands of different ways people can spend money, which also means that there are thousands of ways in which you can save money, all of which should help to improve your financial situation.
SAVING ACRONYM
I have developed this simple SAVING acronym, which lists 6 easy money SAVING tips that will hopefully give you some ideas on ways to save money in your own life.
Smoking
To be perfectly honest, smoking is a terrible habit. Quitting smoking will not only save you a tonne of money, but it has the added benefit of improving your health!
In Australia a packet of smokes can cost up to $20, that’s almost $1 per cigarette. If you were to smoke 10 cigarettes a day then you could be spending about $60-$70 a week on this habit (that’s over $3000 a year).
Alcohol
Alcohol can be another great money waster. If you decide to go out to the pub, or have a night out on the town, a drink can sometimes cost greater than $7-$8 dollars. Now i’ll admit that i’m guilty of spending more on alcohol than I probably should, but I have improved with age – sort of like a fine wine 
When I was younger, I used to spend a small fortune on a saturday night drinking alcohol, sometimes i spent close to $100 a week! Nowadays I normally buy a carton of beer every 6-8 weeks at a cost of about $50 a carton; It’s far cheaper than buying spirits or going out to have a drink. I just wish I could have seen how much money I was essentially drinking every week when I was younger and stupider.
Vanity
I am constantly amazed at how much money people spend on trying to look good. I probably shouldn’t be surprised, considering the amount of money that is spent marketing products on the TV each night.
I believe it starts when we are children at school – we all remember the kid who had the brand new Nike shoes that cost $200, I remember thinking how great it would be if I also had those same shoes. Being a child, I didn’t comprehend that the shoes weren’t any more functional than my own, I was simply the naive victim of corporate marketing.
It’s not just clothing items which vanity can end up costing us a fortune on, there are hundreds of thousands of beautification products that claim to do everything from reduce the signs of aging to cooking you breakfast in bed… well not quite, yet…
Interest
Interest on credit cards or mortgages can be a killer when left to compound. Everyday you put off paying down your debt, is another day the banks are charging you interest on that money they loaned you.
Some credit cards can have interest rates of up to 20%, which can mean that if you don’t pay off the debt each month within the interest free period, you are going to be owing the bank a lot more than you started with.
Mortgages have better interest rates, but are normally far larger loans. Paying even an extra $10 a week into a mortgage can save you an entire year off your mortgage and tens of thousands in interest over the life of the loan.
There are heaps of mortgage repayment calculators on the net, it really is worthwhile understanding just how big of a difference a couple of dollars a week can make to your monthly interest bill.
Needs And Wants
Reducing discretionary spending is an excellent way to save money. The next time you are out shopping and you are about to buy something, stop and think – “Do I actually need this? Or is it something that I just want?” There is a big difference between the two and for some people the line can often be a little blurry, particularly if you are used to compulsively buying things.
If you are serious about saving money, then i’m sure you will make the correct decisions when it comes to evaluating if something is a need or a want. Then you can sit back and enjoy watching your bank balance grow, whilst reading the latest Monster Piggy Bank posts 
Groceries
Everyone needs to eat, and for most people that means heading down to the local shops at least once per week to do grocery shopping. I don’t really enjoy the weekly grocery shop, but I do enjoy being able to compare the various products for sale. The fun bit for me is determining which item is the best value for money. I often leave the shopping complex feeling pretty pleased with myself that I just saved around 5-10% on my grocery bill, simply by looking around at the multitude of specials and making some frugal choices.
My best tip on saving money when grocery shopping – Make a list before you go and make sure you stick to it.
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As always, please leave any comments that you might have below in the comments section. I would love to hear from you.
Thanks Glen
I like that acronym! It reminds me of something you would be taught about in a seminar – which is a good thing. You have some definite Dame Ramsey type qualities if you are able to come up with catchy tips such as this. Well done.
My Money Design recently posted..My Money Design for Achieving Financial Freedom – November 2012 Update
Thanks for the kind words! I’m not sure i’m quite in his league, but lets hope one day I can help as many people as he does.
Hold up, $20/pack?!? That’s crazy! I don’t smoke but I think it’s insane the taxes that are slapped on cigarettes. There should be a flat tax on consumption instead of picking and choosing what products are taxed higher, that’s just my opinion. Great tips!
DC @ Young Adult Money recently posted..What I Care About In This Election
I know! I actually saw a pack for $22 when I was at the shops today.
The Australian government puts some huge taxes on cigarettes in this country, they even recently we so far as to take the branding away from cigarette packaging, so that all manufacturers will have to make them a plain olive green color.
There are huge taxes on cigarettes in Canada too. Considering the government pays for healthcare I don’t have a problem with them overtaxing cigarettes considering the health bills that will result because of the habit.
Mandy @MoneyMasterMom recently posted..Prepping for a group cook!
Seeing as I don’t smoke, I have less of a problem with the heavy taxes than I would if I did smoke. Although it does bother me a bit that the government can essentially make it financially difficult for people to do something, just because its less socially acceptable and they want to reduce the behavior.
These are all great tips! It seems obvious but some people just do not get it.
Greg@ClubThrifty recently posted..Top 5 Finance Apps to Keep Your Finances in Check
People are really spoiled for choice when it comes to finding things to save on. It all comes down to willpower and what you are prepared to compromise on.
Great acronym. And I thought Europe was expensive at $10 a pack of cigarettes, $22 is just insane. In France they calculated that the government by raising cigarette prices was actually losing money because life expectation would get higher and they would have to pay more pensions for longer. So by not smoking you are actually not saving money, as your taxes may go up to finance your pension. Confusing.
Pauline recently posted..Little house in Guatemala, week 1
I’ve read that 3 times now and i’m still a little confused
So they want people to die younger?
No, they are a welfare state. So they raise cigarette prices, in spite of losing money in the process, because they save lives of future pensioners that will cost them a lot of money dying later. But in the end, the people pay taxes to finance pensions. So instead of having just the smokers pay for their cheap tobacco and die early, everyone pays for their pensions. Which is why in that particular case I wonder if not smoking is actually saving you money.
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Ahhh ok then. Sound about as sustainable as most other countries pension plans.
Great tips and I love the acronym! I agree that a lot of times it just comes down to a mindset and being willing to live a disciplined life. I have been guilty as well of spending money on things like alcohol. But, in the end, I’d rather have a lot of that money for something else.
John S @ Frugal Rules recently posted..You Won’t Reach Retirement Without Saving for It
We are all guilty of over spending on one vice or another.
As long as it’s controlled spending and you can afford it then I guess it doesn’t really matter that much.
I am always puzzled and a bit amazed at how many people lack discipline when it comes to their finances, especially with spending verses saving. The solution is simply to morph compulsive consumerism into more conscious spending, and it is a shame these basic skills (yes, saving IS more important than owning all the latest shiny gadgets) aren’t examined and taught more thoroughly in school.
Jennifer Lynn @ Broke-Ass Mommy recently posted..Another Monday Coming ‘Round
I was arguing this point with someone at work today. How is it that my education at school consisted of learning about mixing chemicals together, but I didn’t get the chance to learn about basic money management skills?
I don’t know about you, but I deal with money daily – not so much on the chemicals side.
I always love a good acronym. Great tips, Glen. I think if cigarettes cost $20/pack here, it would be a lot easier for my fiance to quit.
Gen Y Finance Journey recently posted..Giving Up Control and Leaving My Comfort Zone
Pretend that it does. Put the extra money into a jar and contribute it to your savings each month.
This is exactly what I think all the time. I see people everyday who say they can’t afford something or don’t have anything leftover to save when they smoke a pack a day, have an iphone and $200 sneakers. They choose not to afford it.
Kim@Eyesonthedollar recently posted..Rental Property Series: Let’s Drink to Having Tenants
Here here! It’s all about lifestyle choices.
Some great, yet basic tips – good post! I have most of them smashed, but the ‘needs/wants’ and ‘food’ categories occasionally get abused…
Savvy Scot recently posted..The Benefits and Risks of Contracting
I figured that most personal finance bloggers would be well on top of these. Most of them are so simple it almost doesn’t need saying, but then again, some people still struggle…
Smoking and alcohol can quickly eat up anyone’s budget. Spending less on groceries is an on-going challenge for us, but we are getting there.
Tackling Our Debt recently posted..10 Ways to Boost Your Productivity
I think groceries is the hardest of the lot as well. There are just too many yummy foods to eat!
Often my broke co-workers complain about not having any money saved. However, they definitely have a problem with the first three. They continue in a never ending cycle and refuse to stop these bad habits. But then complain when they have no money. I used to have sympathy for them. Now I’m just tired of hearing their problems that they could easily solve.
justin@thefrugalpath recently posted..3 Cases Where Extreme Cheapskates End Up Paying More
Sounds to me like your co-workers need a dose of willpower. I’m with you – either do something about your money problems, or stop complaining.
Nice tips. We don’t smoke but we do enjoy good wine and food. For us, we keep it in the budget by making sure things like wine and eating out come from our “entertainment” fund – after all, we’re not drinking or eat at fancy restaurants to get full, we’re doing it because it’s enjoyable. It means we have less money to do things like go to movies or concerts, but it forces us to choose and stay on budget.
CF recently posted..Paying off $27,000 in student loans
Excellent point, its all about life choices. You choose to go to nice restaurants rather than do other things.
There is nothing wrong with spending a bit of money to enjoy life.
Great advice as always. This really is a great article – it’s a very good break down of the major areas we can all attack to save some serious dosh.
I have absolutely SMASHED the vanity sector and I’m going pretty well in the needs and wants. I bought a shaver, and now my only vanity expense is work clothes from time to time and then thrift shop clothes – I buy deodorant and that’s about it!
James @ Free in Ten Years recently posted..Monthly report: October 2012
This is only the tip of the iceberg as well!
There are so many things you can save money on that are discretionary items. It seems to me that these days people just take for granted that they need things, when in actual fact they just want it.
Great ideas Glen. I always forget about smoking, because I don’t smoke. I image the price of cigarettes these days is over $5 a pack in the US. Still adds up to a ton of money, but not like Oz – WOW!
I actually had no idea about the cost either until I decided to write that post and do a little research.
Alcohol was definitely spendy for me during my college years. We tried to save money my “pre-gaming” at home before we went out. But that often resulted in being drunk before arriving at the bar and not having as much sense to stop spending once we got there. It also gave us a pretty big bar food tab
KK @ Student Debt Survivor recently posted..Should You Tell a Friend They Make Bad Financial Decisions?
I used to do the exact same thing. It seemed like a good idea at the time though…
That’s cool! Money saving tips are simply useful… I love them. I’d cut down on the vices.
I’d give up on the cigarettes and alcohol. For the wives, less makeup perhaps. Seriously, saving money is difficult but it has to be done. Save for a rainy day. This is all that has to be done.
David @ Bankruptcy Canada recently posted..Personal Bankruptcy Blog Carnival November 7, 2012 Edition
Cigarettes and alcohol can be difficult to give up if you are used to having them regularly, but the savings can be most rewarding if you stick with it.
Thanks for commenting
This is one of those great tips I’ve read in the internet! I like how you came up with that acronym and definitely agree to everything you’ve said. If only my husband stops his smoking habits we can definitely save more and spend it for groceries weekly. I’m a bit guilty with the grocery tips since I can’t do it every time we shop. It’s hard to have a kid while doing the grocery since they keep on pointing out to everything new to them.
I’m sure it must be more difficult with a child, I’ll get to experience that first hand in a couple of years
I’m so incredibly happy I have no clue what the price of cigarettes are….
AverageJoe recently posted..Stock Market Punishment: The First Lesson of 2013
I think that’s a good way to be Joe.
I was shaking my head yes for each one of your tips. Great stuff, you’d think everyone would think like we do. Sounds like you’re in Australia so this may not matter much but I found a pretty neat company recently that will negotiate your bills on your behalf for a cut of the savings. It’s called Billcutterz, I used them recently and they saved me some money on top of what I thought were already reasonable bills. I think they only serve the U.S. but, it’s just another way to save.
Jesse@LiveFrei recently posted..BillCutterz Review
If I could seriously give up alcohol and Tobacco I would save quite a bit of money. If only it was easier to quit
Virtual Private Server recently posted..Superb.net
I think determining what is a need and what is a want is the key to making substantial improvements in saving money and paying down debts. If your in the consumerist mindset everything you buy you think is a need when really they are probably wants. So identify that is the first step. Cutting out smoking and cutting back on boozing definitely helps the budget. I always make sure I buy the food items that are on store special when I go. Every budget trick helps!
Potato Head recently posted..5 Tips to Save Money and Cut Your Budget