35 ways to save $20,000 toward financial independence
Today, we’re going to talk about 20 ways you can save $20,000. Yes, you heard it right! $20,000 is a lot of money, and if you follow some of the tips we’re going to discuss in this video, you could easily save $20,000 within a year or two.
One way to get there is to cut expenses, but you can only cut so far. The other is to make more money and that is unlimited and we’ll talk about that in another video.
You may like some and some may not apply to you. Here are some ideas to consider.
Create a budget: Start by making a budget and tracking all your expenses. This will help you identify areas where you can cut back on unnecessary spending.
Cut back on dining out: Eating out can quickly add up, so try to limit your meals at restaurants and cook at home instead.
Cancel subscriptions: Take a look at your monthly subscriptions and cancel those that you don’t use regularly. Some people have ALL the subscriptions, Disney, Spotify, Apple. It adds up.
Reduce transportation costs: Consider carpooling, using public transportation or biking to work instead of driving. Cars cost around $10K yearly so ditch it if you live in a place where you can.
Negotiate bills: Negotiate with your service providers to see if you can get better deals on your cable, internet or phone bills.
Shop smarter: Look for sales and use coupons to save on your grocery bills.
Use cashback apps: Download apps that offer cashback on purchases, such as Ibotta or Rakuten.
Sell unwanted items: Sell unwanted items online or at a yard sale to make some extra cash. Storage unit?
Use energy-efficient appliances: Invest in energy-efficient appliances to save on your monthly utility bills. Check your toilets that they don’t run or leak. Look at the valve seal.
Cut back on electricity usage: Turn off lights and unplug electronics when they’re not in use to save on your energy bill.
Use a programmable thermostat: Set your thermostat to automatically adjust the temperature when you’re not home to save on heating and cooling costs.
DIY home repairs & car repairs like an oil change: Instead of hiring a professional, try DIY home repairs to save on the cost of labor.
Use public libraries: Instead of buying books or movies, borrow them from your local library. Libby
Cut back on alcohol and cigarettes: Cutting back on alcohol and cigarettes can save you a lot of money over time. Those drinks are expensive!
Buy generic brands: Buying generic brands can save you money without sacrificing quality. Wear the same clothes, like my basic white and black t-shirts. It also cuts down on decision fatigue.
Thrift stores. Mackelmore taught us that thrift can be great. There’s some good stuff.
Use credit card rewards: Use a credit card that offers rewards, such as cashback or travel points, and pay off the balance in full each month.
Set savings goals: Set specific savings goals and track your progress each month to stay motivated.
Shop around for insurance: Shop around for the best insurance rates for your home, car, and health insurance.
Buy in bulk: Buying in bulk can save you money on household items and groceries.
Prioritize your spending: Prioritize your spending and focus on your needs over your wants.
Cut your phone bill by using something like Mint mobile for <$50.
Don’t upgrade every time a new iPhone or Samsung comes out.
Just because it’s on sale, doesn’t mean you need it.
Set up automatic savings with your bank. This will help you save money. Do it weekly or every time you get paid. It’s easy and happens automatically.
Store brands are much cheaper. If you’re not a foodie, it’s totally worth it.
24 hour or 7 day rule. Sleep on it and do your research.
Say no or hell yes. Focus on what you’re really excited about.
Ask for discounts – hotel story in Boise, pay in advance
Borrow instead of buy. If you’re only planning to use it once or twice, borrow it.
Cut your gym membership or downgrade if you’re not using it, esp if you have a Crossfit or other $100+ monthly membership. It may be better to just run outside or workout in your basement.
Delete food ordering apps like Uber eats. You’re paying for expensive food, service fees, tip and taxes.
Bottled water. One of the biggest scams, unless your water is just terrible. Get a filter if you really want good water. It’s also terrible for the environment.
Mindset change from “I can’t afford it” to “It’s not in my budget” makes it easier to say no and not feel poor. It’s empowering.
There you have it, 20 practical ways to save $20,000 and get on the road to FI. Remember that every dollar counts, and with dedication and persistence, you can achieve your financial goals. Thank you for watching and we’ll see you in the next one!