The best way to save money?

Rental Property Investor · Norman, OK · Member since 2018 · 158 posts · 529 votes

Yet another chance to be featured in the next issue of BiggerPockets Wealth Magazine!

Calling all finance savants: What money-saving strategy do you swear by?

By responding here, you're allowing us to print your name and response, if chosen, in the next issue of the magazine. We're excited to hear what you have to say!

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Matthew Irish-JonesBusiness Member

Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes

@Kaylee Walterbach Shut down your Amazon prime account

Irish Jones Realty4.948 Reviews

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Katie Bargetto
Investor · Phoenix, AZ · Member since 2020 · 1 post · 3 votes
4y
One of my favorite money saving strategies is becoming your own bank! We utilize a strategy by which we save and store money in an overfunded whole life insurance policy and then also use that policy to invest in real estate. It allows our money to grow and work in more than one place: the whole life policy and our real estate assets. Accelerating the velocity of each and every dollar allows for more dollars to be saved.
3 Reply
John Perrings
Insurance Agent · Orinda, CA · Member since 2016 · 77 posts · 113 votes
4y
"Saving money" means storing money in a place where:
1. You won't lose any of it by keeping it there and;
2. You can get to it when you want it
This makes things like brokerage accounts, qualified plans, lines of credit, etc., definitively not savings vehicles.
People have been taught to use these products because of the fact that your money can't earn anything sitting in a bank account, which is true.
But what if you could get respectable growth on your cash without giving up guarantees and liquidity?
Enter cash value whole life insurance.
A bedrock financial tool that's been around for centuries and grows by orders of magnitude over that of a bank. Whole life insurance is guaranteed, has creditor protection, offers safe leverage, and can create incredible tax strategies later on when you want to sell assets.
A perfect place to store cash.
4 Reply
George Munoz
Real Estate Agent · Fort Lauderdale, FL · Member since 2018 · 360 posts · 213 votes
4y
This might sound like a shallow msg but it worked for me .. Make more money! Focus on making instead of saving, and be self-aware if you have a difficult time to be self-discipline saving money . Focusing on making more will be more rewarding and I think you can enjoy more the process, If you are aware, that will balance out the fact the you/I spent a lot .. once you make so much more than what you spend. the Extra money, save it in accounts that generate you money or put that money to work so you can make more money ...
my 2 cents..
PS: the principle I gotten from grant cardone..
3 Reply
Connor Kerr
Rental Property Investor · Akron, OH · Member since 2021 · 36 posts · 17 votes
4y
Good old fashioned budgeting.
Take an hour or two to look at all your statements from the last couple months, calculate your average fixed expenses, investment allocation, utilities, food, etc... then create a budget from those numbers, and stick with it. The best way to do that is to allow yourself a little bit of fun money every month for doing things you enjoy doing. For instance, I set money aside for golf and camping every month. You can make a budget any day of the week but if you're miserable while you use it, you won't stick with it. I started my first budget when I was 18 y/o, two years later I purchased a duplex completely on my own. I'm living proof that budgets WORK!
1 Reply
Jeremy Komer
Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
4y
@Kaylee Walterbach
Automatic withdrawal on payday to another savings account or brokerage account.
You just used to not having the money and it makes things easier.
0 Reply
Kristine E. Berry
Member since 2021 · 7 posts · 2 votes
4y
@Matthew Irish-Jones so true! I literally was spend like $500 plus amount on items from Amazon.
0 Reply
Sash Joveski
Real Estate Agent · Crown Point, IN 46307 · Member since 2019 · 24 posts · 16 votes
4y
The big ticket items you are almost always aware off, such as house payment, car payment etc, but where most people struggle with is the small spending.
That’s what is eating away at their savings.
A $4 cup of coffee, $15 lunch, extra snacks at gas station, things like that in general.
It’s like a small leak, that often goes unnoticed that’s really causing a lot of damage, and then all of a sudden it’s a big leak, that you’ll instantly notice!
4 Reply
Justin Bauer
Investor · Cannon Falls, MN · Member since 2016 · 150 posts · 55 votes
4y
Budgeting sucks, Sweep accounts and make my money work for me and not a bank. I like John Perrings reply.
0 Reply
Marco Aceves
Member since 2020 · 23 posts · 17 votes
4y
Build the discipline to save a percentage of your income (for me and my wife, it is 30%). As soon as our w2 direct deposit hits, without a second thought or hesitation 30% goes into our "Investment Fund". Before we got into real estate, that money would go directly into the stock market.

1. You MUST be disciplined.

There is no way around that. The book that really helped my wife and I get serious about saving money (amongst many!) was The Richest Man in Babylon.. further solidifying the concept was "The Millionaire Next Door" (again, there are many many many books we've read that re-enforce the concept of saving but those two really stick out)

2. You MUST track your expenses

We were spending $600-$700 per month on groceries (for two people!!!!(no, this is not a joke)) and on top of that we were eating out every other day so most of the food bought at the grocery store went bad and had to be tossed. On top of the ~$650 for groceries, we were spending about $450 more a month on eating out and of course millennials love craft beer and nice wine(lol).

We went from 0-100 from the beginning and started eating out only once a week and gave ourselves a $50/week grocery budget except when we needed paper goods. We only bought what we knew 100% we needed and would actually cook. This was definitely hard at first but we got used to it after a few weeks. and although after about 6 months we did increase our grocery budget a little bit so we could treat ourselves to a nice steak or whatever, we were saving significant money by then.

Had we not tracked our expenses, we would have never really saved the money we did (and now continue to do). We went from saving X amount of dollars to saving an EXTRA $800-ish/month by tracking our expenses and deciding to do something about it. It ain't nothing to it but to do it!
(We sometimes do eat out more than once a week, or go a bit over budget with groceries but it is much more manageable and responsible than before, were human after-all)

3. You MUST take action.

You can read all the books you want, listen to as many podcasts, watch all the YouTube videos but if you don't take action.. its not going to happen. You can literally start today by choosing to make coffee at home instead of getting that venti frappe from Starbucks.
Look at your bank statements.
5 Reply
Patrick FitzgeraldPro Member
Investor · Member since 2019 · 19 posts · 16 votes
4y
My grandfather told me: "A man can't raise a family on 40's" (Father of 6 kids, Married 63 Years)
He Worked 80 hours a week into his late 70's, and had 57 doors, a primary, and 2 vacation homes paid off when he passed.
Get up early, get a side job and live on 60% of what you bring home. Invest 15% in Mutual Funds, and 25% in Real Estate.
2 Reply
K. Tucker
Member since 2020 · 10 posts · 24 votes
4y
I negotiate expenses. I recently had repair work done in my home by a handyperson company. Referred a family member to them and then asked them for a discount for my next service. They gave it to me. I call bill companies and ask them how I can lower my bill. Small amounts do add up.
1 Reply
Marco Batista
Member since 2020 · 5 posts · 5 votes
4y
@Kaylee Walterbach The number one thing I can recommend that helped me the most is downloading an app like Mint. To me it is the most vital step in knowing:
1. What your assets are/ What your liabilities are
2. Knowing your expenses and seeing where everything is going. (You'd be surprised how many subscriptions go uncancelled)
The app makes it very easy to see and its very easy to use, it also almost feels like a game trying to increase your net worth every month which is another plus.
1 Reply
Account Closed
Member since 2022 · 1 post · 0 votes
4y
You need to avoid go outside to save a lot of $$$.
0 Reply
Anthony Nunez
Real Estate Broker · NY · Member since 2021 · 21 posts · 18 votes
4y
-I try to keep my expenses consistent, while simultaneously increasing my income (extra work, smarter investments, strategic leveraging via RE)
-I try to systematize all my expenses and use my credit card whenever possible to accumulate as many of the perks as possible, while paying off the credit cards quickly to avoid fees
-I try to leverage my work whereby its enjoyable and productive, example yankee games to celebrate closings or networking events with top notch food or scenery
0 Reply
Calvin Matthews
New to Real Estate · Member since 2020 · 50 posts · 16 votes
4y
Open new credit cards to use when shopping for things I'm buying anyways (the key word being "anyways") to earn the sign-up bonuses. I don't intend to shop more than I have to, and opening new credit cards has allowed me to rack up huge amounts of various hotel points, airline miles, and credit card points in a much shorter time than it would take if I just spent on the same cards regularly. My credit score now is at a point where opening and closing cards make a small dip in my credit score, but it bounces back after a little while because I pay all of my credit card bills on time (VERY VERY IMPORTANT). Last year alone my family and I did 3 staycations at Hilton, Marriott and IHG brands from points I accrued through credit card sign up bonuses. Currently working on spend for the AMEX Gold card which I signed up for when they had an elevated sign up bonus of 75,000 points and when travel eases, I'm planning on using these points + points I've accumulated from other AMEX cards to go to Japan with my family.
0 Reply
Wendy ThurstPro Member
Nashville, TN (nashville tn) · Member since 2020 · 49 posts · 28 votes
4y
@Ivan Maldonado budgeting using a simple tool like excel spreadsheet. Separate tabs for expenses, assets, bank accounts.
Two other key things that amped up our game: 1) open a new bank account with a local credit union and deposit ~10% earnings there… a separate bank from your every day checking. 2) forecast. Using excel we listed debts and income on the rows and years across the columns. We did 12 years and it was eye opening with showing our path to FIRE. Helps to keep the focus on the big picture. Best of luck!
0 Reply
Lisa Field Moore
Investor · Member since 2022 · 6 posts · 0 votes
4y

0 Reply
Amanda Bruneau
Real Estate Agent · Providence, RI · Member since 2020 · 41 posts · 29 votes
4y
Have a certain percentage of your paycheck go into an automatic savings account you do not touch!
0 Reply
Account Closed
Lender · Queens, NY · Member since 2021 · 22 posts · 9 votes
4y
One of the best money saving tools is to learn how to do basic repairs on your own without contacting a professional. Need to fix a hole in the wall? Google it and it will take you an hour! Need to change a sink? Go to Home Depot and ask one of the sales team members! Cracked tile? Look online and learn how to do it yourself in under 2 hours? Don't waste time on "professionals" unless you absolutely need to!
0 Reply
Nicole Heasley Beitenman
Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
4y
I like Paula Pant's anti-budget theory: https://affordanything.com/ant...
0 Reply
Account Closed
Member since 2021 · 217 posts · 190 votes
4y
Saving money for most people is the same thing as the diet component of fitness.

Neither are about some gimmick or simple trick. You know what needs to be done- both require making a detailed budget and sticking to it over a long period of time.

Unlike market prices, this is one thing that IS under your control.
0 Reply
Catie Lawrence
Flipper/Rehabber · Arvada, CO · Member since 2019 · 63 posts · 47 votes
4y
Love this question!
I'm an extremely frugal person, who is also extremely social, so here are a few of my top tips to save money - and still have a life!
Stop eating out! Cooking in is not only healthier, but it's extremely less expensive. If you want to make it fun, choose a few new recipes a week that you meal plan/shop for. Batch cooking/meal prepping/only shopping for what's on your list also helps.
BYOB Dinner Parties! Being social and getting together with friends is awesome - but it can get pricey! Start hosting bring your own booze dinner parties, where you swap who cooks, everyone brings what they want to drink, and it's a fun night out.
Airbnb out a room in your house! Depending on where you live, this can be a great option to subsidize your mortgage/utilities/expenses - and you can control the calendar. Yes, you have to make some adjustments, but the amount of money you'll bring in will help ease that weirdness.
Get a side hustle! Making more income to pay down debt/save for your next investment property is a must. Do some freelance on the side or start your own business - bring in more income is key!
1 Reply
Steven Taylor
Member since 2021 · 24 posts · 14 votes
4y
Pull a % out of your paycheck and dollar cost average it into 401k/IRA before you even see the money. Max this out before moving on to other savings vehicles, and most of all start young. I'm a big fan of the ROTH 401k's and IRA's. The best way to not spend on doodads is to never have the money available.
0 Reply
David Avery
Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
4y
Save money, Hell no. Make money, partner up , take your god given gifts and go with them. Personality, Construction, Big smile, Hard work,. Look in the mirror and you can depend on that person!!
I have seen people with no money make deals and get 50% of the action/profits. Because they had a vision to put people together and give them a better return in Real Estate Properties.
Deals are everywhere, be creative, sell yourself.
10% savings, Hell No!!!!
0 Reply
Jonathan SmallPro Member
Investor · Suwanee, GA · Member since 2020 · 182 posts · 151 votes
4y
us a dry erase marker and post your debts on the mirror in your bathroom. post your savings goal as well.
update it weekly. this helped me because my wife and kids seen the vision. they knew the goal. you have to create an environment where you can succeed. In my case the environment was my family.
Share the vision and your goals with your family. You will spend less.
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