How to Save Money Fast?

Changing your behavior, at least temporarily, is the only way to fix the lack of savings in your life. Here are some tips to help you save money fast.

According to GoBankingRates.com, half of Americans have less than $1,000 in savings as of 2017. That's a sad state of affairs, giving that savings is the foundation of even the basic form of financial independence.

The sooner you get one or more of these strategies going, the higher up the savings chain you'll move, and a better life will go for you.

To save money fast, try a couple of these....

Cut a few expenses and bank the savings
This is the strategy that will take the least amount of effort. You pick two or three expenses that are least important, and eliminate them.

This can be an unused gym membership, cable TV, add-on services phone services, or newspaper or magazine subscription.

You can also cut out or drastically reduce "behavioral expenses". Examples include frequent restaurant meals, heavy entertainment expenses, or even travel.

You don't have to cut any of these expenses permanently. You can eliminate them only as long as it takes you to reach whatever your savings goal is.

For couples: Live on one paycheck and bank the other
It's often said that "two can live as cheaply as one." That's not entirely true - it might be more accurate to say that two can live as cheaply as one and a half. But the basic premise is valid.

If you're a couple sharing expenses, one of the most effective ways to save money fast is to dedicate one paycheck for basic living expenses, and the other for savings.

Of course, the theory is better than reality. You'll probably have to cut expenses in order to live on a single paycheck.

Naturally, the more you can allocate into savings from the second paycheck, the faster the savings accumulation will go.

Bank a windfall
Most people get windfalls of some type during the course of a typical year. It could be a bonus check, a large commission check if you're in sales, a gift from a family member, or even the proceeds from the sale of an asset.

Perhaps a more common example is an income tax refund. According to the IRS the average federal income tax is $3,120. That's the federal refund only; a state refund will make it even larger.

Instead of spending the windfall, you can fast-forward your savings by banking it instead.

Create a new income source specifically for savings
This can be a part-time job, contract work, or creating a side business. You can choose which ever works best for you. But one of the advantages of contract work or a side business is that they can be ongoing. That means they can help you with long-term savings goals, as well as more immediate ones.

Whichever income source you choose to create, it will be absolutely critical that the income earned goes directly into savings. Like cutting expenses, you can do it only so long as it takes to reach your savings goal.

It doesn't have to be a lot of money either. If you earn an extra $250 per month on a very part-time basis, you can save $3,000 within one year.

Sell everything you don't absolutely need
If you're like most people, you probably have a house full of stuff you need, and an equal amount that you don't. Even if you think it's junk, the stuff you don't need could be worth some money. Gather it all together, clean it up, and get ready to put it up for sale.

Do some searching on the web to determine reasonable pricing. (eBay has an Item Pricer App that will help you check eBay prices).

There are different ways you can sell your items:

  - eBay
  - Craiglist - works best for larger, higher priced items
  - Amazon
  - Holding a garage sale, or tagging on with someone who is
  - Flea markets and swap meets
  - Consignment shops

Depending on how much un-needed stuff you have, you can generate anywhere from a few hundred dollars, to a few thousands, to a few thousand. And that'll look a lot better in your bank account than stuffed in a closet or attic.

Guerrilla warfare tactics to save money
This one really depends on where you're at in life. It'll be easier for people who are single or married with children. But the basic idea is to radically lower your cost of living. That will mean targeting your major expenses, rather than trimming around the edges of your budget.

The possibilities here are enormous. Let's say you're single, and currently living in an apartment that costs $1,000 per month. By taking in a roommate, or becoming a roommate, or becoming a roommate in someone else's apartment, you might cut your rent down to $500. That would enable you to save $6,000 in one year.

Another example: You have a late model car with a $500 monthly payment. You sell the car, pay off the loan, and buy a "beater". Sure, you'll have higher repair bills, but it's unlikely those will total anything close to the $6,000 that you'll save on car payments.

Both options seem extreme on the surface. But if you're looking to save money fast, these efforts will get you there.