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8 Creative Ways To Start Saving Money

What’s the most creative – but impactful – thing you’ve done to save money personally?

 

 

1. Save Bi-Weekly, Not Monthly

Chad Halvorson“I opened up a second checking account so I could pay my mortgage bi-weekly instead of monthly. I basically have half my mortgage payment transferred from my main account into the new account every two weeks. Then, at the beginning of each month, I pay the mortgage out of the new account. At the end of the year, I have an entire month’s mortgage payment saved up.”

 

– CHAD HALVORSON, When I Work

 

2. Tie Compensation to Results

Michael-Costigan-100x100By restructuring compensation plans for my employees, I have been able to reduce salary overhead and, at the same time, raise their potential for earnings through a new bonus system. This has allowed me to weed out individuals who only seek the bare minimum and bring in people who look to maximize their return through overachieving on targets.”

 

– MICHAEL COSTIGAN, Youth Leadership Specialist

 

3. Switch Credit Cards

JoshWeissavatar-100x100-3“I switched from a credit card that was paying 1 percent cash back to another paying 2 percent cash back. Given the amount of money I spend on my credit card to support my business, this was a quick and easy way to put more money back into my pocket.”

 

– JOSH WEISS, Bluegala

 

4. Write a Prioritized List of Luxuries

derekflanzraich“I love coffee, and it’s an important ritual for me to go to a coffee shop in the morning, breathe and then go on my way. That goes at the top of my list. But other luxuries are far lower – and seeing that laid out helps me decide where to spend my money more wisely than deciding on a case-by-case basis.”

– DEREK FLANZRAICH, Greatist

 

5. Set Up Automatic Retirement Savings

alexavatar“I set up a Roth IRA account, where I automatically have $300 from each paycheck (bi-weekly) entered into my savings account. I have gotten used to not living with the money, and it is amazing to see how much that adds up to over a year – close to $10,000 each year in savings.”

 

– ALEX CHAMBERLAIN, EZFingerPrints

 

6. Use the Sharing Economy to Save Tons of Money

gagan02051115003417969“For six months last year, I decided to take a hiatus from work. Of course, I had some money saved up, but the reality is that most of my money is tied up in equity in the companies I’ve created. So I had to save money. Enter Airbnb, Getaround and Udemy (my company). I used Airbnb to rent out my place while I was traveling, Getaround to cheaply rent cars and Udemy to make money teaching online.”

 

– GAGAN BIYANI, Growth Hackers Conference

 

7. Trick Yourself

DarrahBrusteinavatar“It’s important to manage your lifestyle growth as your income grows, so I don’t “let myself know” that I make more money now than I did before. I do this by spending the same amount I did when I didn’t have any extra money to spend. I save the rest by “tricking” myself.”

 

– DARRAH BRUSTEIN, Network Under 40 / Finance Whiz Kids

 

8. Pretend to Own and Decide After 3 Months

Derek-Capo100“Usually for big purchases, I take a long time because I fear I may have bought on emotion or hype. I visualize myself using it every day and if I can’t, I won’t buy it. For example, when the first iPad came out, I, like a lot of people, wanted to buy it, but felt it lacked apps, cameras, etc. It took me two years to buy one because it finally caught up to my needs, improving my productivity, etc.”

 

– DEREK CAPO, Next Step China

 

Photo Credits

Startup Collective

Author : Young Entrepreneur Council

The Young Entrepreneur Council (YEC) is an invite-only organization comprised of the world's most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.

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