How to stop wasting money and build your savings

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Does your savings account balance have you down? With today's low-interest rates it is probably a bit depressing to realize your savings aren't growing as much as you'd hoped they would when you opened the account.

Even worse, if you discover your balance is actually decreasing. If you want to figure out ways to save money, but perhaps aren't sure where to start, the best place to begin is to stop and take a closer look at where you are spending your cash.

Start by taking a look at your spending habits. It's amazing how much money is unknowingly wasted through daily routines. Did you know making just a few adjustments in your home, personal, and living expenses can bring significant results?

In the Home

You can begin your journey to putting more money back into your pocketbook with just a few small changes in your home.

Prepare your foods at home: If you were to add up how much you spend each month on prepared foods, chances are you’d be surprised at the amount. Prepare your meals from scratch. It’s a great way to cut back because it’s much cheaper (and healthier!) than packaged foods or take-out. Restrict your dining out to special occasions or budget a certain amount each month for eating out and stick to that amount.

Unplug where you can: Turn off lights and appliances which aren't in use or, better yet, unplug them completely. You may not see immediate results, but over the course of time, you're sure to notice lower electric bills. Being energy efficient will help you put some of that wasted money back in your savings account.

Fill appliances to capacity: Fill your washing machine and dishwasher to capacity so you aren’t wasting water and electricity. In your washer, use cold water when you can. It takes energy to heat the water and washing multiple smaller loads will add up in kilowatts and gallons too.

Use a thermostat timer: Consider installing a programmable digital thermostat and use its timer feature to plan your heat and air conditioner use when you are actually in the home. Setting your timer to kick on during specific times of the day will help cut back on energy costs. This way, it’s not being blasted when no one is home.  

Living expenses

Next, take a look at where you’re spending money every day. Chances are, here too, you can scale back on some unnecessary spending.

Grocery store: Before you head out to the grocery, make a list of the items you need to help reduce impulse buys and stick to the list. Try buying store brand products instead of more expensive brand names; often we pay extra for the packaging and the name brand but many products are generally equivalent. Our shopping habits are often a huge culprit that impedes our ability to save.

Pay down debt: Strive to pay down your debt try to avoid carrying a revolving balance. Creditors love to give customers the ability to pay only the “minimum balance due" and make people feel as if they are keeping more money in their pockets. In reality, it is the bank's coffers which are getting more robust on interest, while yours shrinks.

Cable and mobile: Do you really need the expensive cable and mobile plans? In the age of Netflix, Amazon Prime and other streaming options, you can cut back on the costly cable options. Take a look at your mobile too and see if that too can be scaled down to a smaller data plan or look to buy a cheaper phone on your next upgrade.

Personal expenses

Other expenses to take a look include things you spend on yourself. See what purchases are necessary and start subtracting out the unnecessary ones.

Eat breakfast at home and bring lunch to work: It’s amazing how the few dollars spent on these two items on a daily basis add up quickly. Packing a lunch can save you several bucks a day. 

Make coffee at home: Invest in a good insulated cup and you’ll be on your way to getting an ROI on it. Even one or two cups of coffee a day add up over the course of a month, and this is money that could be building savings.

Buy used: Try shopping at thrift stores for clothing and other household items. Obviously, some things you'll want to buy new, but there are many other items which are just as good used. For instance, a dress jacket is generally a high ticket item, even on sale. In the thrift store, you might find brand new looking ones for significantly less. Many people donate perfectly good items when they are cleaning out their closets and/or downsizing.

By making some changes in the household spending habits and eliminating other unnecessary expenses, you can really begin to build your savings without putting a hardship on your quality of life. Sure, some of the adjustments may take a little getting used to, but in the end, you'll be glad you did when you see your savings begin to rise.

Once you begin to realize your significant savings, take the money and research ways to invest it to further capitalize and establish a growing nest egg for yourself.