How to Save Money for Big Events in Life

How To Save Money | Saving Money Tips | Save Money IdeasThere are so many ways on how to save money, regardless the process or method used, this can easily mount to huge savings.  This article will showcase how to save money for different events in your life.  More frequently than ever, there are testimonies on how people have saved a sizeable amount of retirement from modest earnings. 

This is so fascinating because you will encounter stories on how someone makes above six-figures and hardly making ends meet  The differences in the two scenarios is the ability to implement effective methods on how to save money.

1. How to Save for Retirement

The idea of saving for retirement is sometimes an after-thought. The power of compounding interest has created modest earners into millionaires. The best-known figure who has used this method is Warren Buffet. Below are the best ways to save

  • Participate in 401(k) – do not leave money on the table from your employer
  • Contribute to Your in IRA – there is maximum amount per year to contribute
  • Tax Deferred – qualify for tax breaks (defer paying taxes until withdrawal)
  • Reduce Your Brokerage – understand and reduce your brokerage fees
  • Withdrawals – avoid early withdrawal because this creates additional penalties
  • Automation – automate your savings and any amount is good amount
  • Diversification – invest in low index fund it has great with diverse portfolio
  • Dividend Stock – participate in dividend stock (some live off dividend income)
  • Real Estate – convert a bedroom and rent on Airbnb as corporate suit

 2. How to Save Money for Big Events

Ways to save money on a tight budget is one of the most crucial financial habits we can adopt. There are big events that can be money drainers. Below are some ways to save for big events 

How to Save Money for a Car

Down payment – put as much down payment as you can as this lowers the monthly payment

  • Refinance – shop around for the cheapest interest rate
  • Cash Car – better to save and pay cash for car than a monthly payment
  • Lease Owned – when it comes to money matters, it may be best to own or refinance to own than leasing

How to Save Money for College

This one of the most challenging aspect of debt management. Especially with the current job market where skill set or demand are rapidly changing. The best way to save money in college is to create habits that support money management skills. Below are some examples:

  • Don’t buy new textbooks
  • Don’t  miss out on scholarship
  • Plan your meals & cut dining out
  • Use college amenities e.g. Gym
  • Opt for streaming service & cable
  • Use student discounts when applicable
  • Find a job that helps with tuition reimbursement
  • Get a bank account designed for college student especially credit unions
  • Sell your used on Amazon / eBay  you make more than your local bookstore
  • Plan your courses in advance and get your books from the library or a previous edition instead of buying them

Related articles on How to Improve Your Finances 

How to Save a Money for a House

This is one of the most pinnacle assets you will own, therefore, it is best to set time and do proper research before you purchase. Below are best practices to follow: 

  • Refinance your mortgage for a cheaper interest rate
  • Get rid of your PMI once your balance is below a certain balance
  • Make an extra payment towards your principal as much as you can
  • Borrow from your budget – you may want to cancel some wants and only
  • Side Job – best to pick up extra side jobs to meet your goal, no job is too small
  • Use 0% credit card to massively pay down your debt. This option is to curate borrowing money with no interest payment. Be mindful of the fine print and when you get charges for interest
  • Retirement – you may want to reduce your contributions for some time and fund your down payment account
  • Aim to save more than the required payment. Open a new bank account where you just save for your down payment and automate your savings
  • Research and itemize all the cost for you to close your house such as inspections/ closing cost etc
  • Maximize your savings – you may need to move to a cheaper house in order save as much as you can 

How to Save a Money for a Wedding

Saving for a wedding is a big obstacle and can end up costing more than the original budget. The hardest part is paying back thousands of dollars way past the wedding.  Try not to bring debt into a marriage.  Below are some best ways to save for a wedding

  • Sell as much as you can after the wedding
  • Don’t invite the whole town – small and intimate
  • Get married at the end of the season – prices are cheaper
  • Use venue that is the same as the ceremony and reception
  • Don’t get married during the weekend – this creates big savings
  • Use in-season flowers or fake ones (they look like the real flowers)
  • Get your cake from the grocery store- yes they do wedding cakes
  • Get your dress from the past season there are many clearances going on
  • Shop during the most discounted times, such as Black Friday or cyber Monday
  • Be Bride Model – approach wedding companies and let them feature you as part of their brand. This allows you to get free stuff. (doing this you have to be savvy and plan way ahead)

3. How to Save Money for Social Activities

Part of life is enjoying and exploring new places through vacations, but this can clearly this can be costly if you are financing your excursions through credit card. There are numerous ways to enjoy outdoors, vacation or entertainment activities at a lower cost. Below are some examples

  • Gifts – create a family spending or limit on gifts
  • Newsletter – claim or request rebates or coupons from the company directly
  • Rewards Cards – you can use your rewards points towards travel or concerts
  • Arts & Culture – there are many museums were they offer low priced or free admissions
  • Vacation / Travel – it is best to travel during an off-season as there are fewer people and rates are much lower
  • Sign Up for Discount  Apps –  eg Groupon / LivingSocial  / or set Google alerts for free activities in your neighborhoods

SUMMARY

Success is an intentional act. You have to create your VISION, then plan out your GOALS. You will FAIL more than you will SUCCEED, but be careful not to stumble on stones and conclude that is where your journey ends.

Cheering To Your Online Success,
Brenda | www.ReplaceYour8to5.com
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