Saving Money from Your Salary (13 Tips to Saving in 2020)
If you live off of a salary job, you’re probably wondering how you can save more money.
The good news is that you have a consistent income every month, making it much easier to budget and stay in control of your money.
But working a salaried position also poses some challenges because your income may not grow as fast as you’d like.
In this post, we’re going to show you 11 tips to help your family save money while working in a salaried position.
1. Budget the Right Way to Save Money
Ensuring that your budget is in check is the first step in saving money from your salary.
Do you find yourself overspending in multiple areas each month? It might be time to revisit your monthly budget if so.
Budgeting can be difficult for those who have never done it before. Zero-based budgeting is the most common form of budgeting and involves allocating each dollar of your income to a certain category.
For example, if your monthly income is $3,500, you’ll need to allocate all of your money between various categories including:
- Mortgage or rent payment
- Utility bills
- Phone bills
- And more
Your goal is to have every dollar you make accounted for at the end of the month to better understand where your money goes.
2. Start a Side Hustle to Increase Income
A salaried position is great in that it offers a consistent income throughout the year.
But there’s also a downside. It offers a consistent income throughout the year. That’s right, it’s both a positive and a negative.
If you want to save more, it’s wise to pick up another income stream in addition to your day job.
Best Side Hustles for Salaried Workers
Because you work 40 hours per work and most likely have a set schedule of perhaps 8am-5pm, this can make starting a side hustle somewhat challenging. You’ll need to find a gig that works around your schedule. We’ve gathered some of the best side hustles for those working a full-time position below!
- Driving for Uber or Lyft. Because you can turn on and off your availability with the flip of a switch, driving for a ride-hailing service is a great option to make money on nights and weekends. Your pay is dependent on your location, the vehicle you drive, and the quality of your services. It’s normal to make anywhere from $12 to $20 per hour after expenses driving for these services. Even better, you can take advantage of sign-up offers to pad your wallet even more.
- Flipping furniture. Flipping furniture involves restoring distressed furniture and selling completed pieces for a profit. This can easily be done during any free time on nights and weekends. The best furniture flippers can make well over $1,000 a month.
- Make money blogging. Blogging can be a great way to make money during your lunch breaks or weekends. You’ll spend time writing content related to the niche you choose. Starting a blog is simple and can take less than a week, but it can be difficult to grow, so plan to be in it for the long haul.
- Use a 3D printer to make money. There are many ways to monetize your printer from selling your crafts online or offering classes on how to use a 3D printer. If you are intrigued by technology, a 3D printer can be a great investment.
3. Don’t Forget Credit Card Rewards
If you are a regular user of credit cards, you probably have a good idea of how much money you can receive back in rewards. Hint: it’s probably more than you think.
If you don’t have any credit cards, that’s probably a good sign for your finances. However, you could benefit from hundreds of dollars per year in rewards based on your spending habits.
It might be wise to consider applying for a credit card to take advantage of the free money it can bring.
Bonus: Utilize Credit Card Offers
Credit card incentives have increased over recent years with many card issuers now offering “Offers” in which you can earn additional cashback on purchases made at select retailers.
The amounts you can earn vary but it is common to earn at least $10 to $20 off of your next purchase.
3. Keep Utility Costs to a Minimum
Utility costs can quickly approach a nice chunk of your monthly. They could likely be your 3rd or 4th largest expense each month, meaning that any effort you put in to lower your costs can save you a decent amount of cash.
Between adjusting your thermostat, timing your showers, and opting for lower speed internet, there are many different methods for lowering your utility costs. Try using a combination of several to see how much you can lower your utility costs each month!
4. Lower Your Grocery Bill
Now that we’ve guided you through a few ways to lower your utility costs, the next largest cost on your budget is probably your weekly trip to the grocery.
Use Coupons When Possible
Coupons can be a great way to save money on name brand products and especially personal care items like shampoo, deodorant, and toothpaste.
You can often save anywhere from 10% to 20% on many products just by searching for coupons. Today, the use of technology makes finding coupons even easier.
The Kroger app for example allows you to load coupons directly to your membership card, eliminating the need for scissors!
Buy Generic to Save
Generic products can cost significantly less than there name brand counterparts. After all, all of that marketing to promote their products isn’t free. You can typically save anywhere from 10% to 20% by purchasing generic alternatives and most of them will offer a very similar quality and taste!
Shop at Wholesale Clubs
Shopping at wholesale clubs can save you a considerable amount on items that you use regularly. Because they sell items in bulk, you can take advantage of major discounts.
You’ll need to be careful, however. Because items are sold in bulk it is easy for perishable goods to go to waste if you do not use them, costing you money.
5. Eliminate Reoccurring Subscriptions
Have you ever been charged a monthly subscription fee for something that you rarely use or completely forgot about? Me too.
Go through your spending for the month and look for any opportunities to cancel memberships that aren’t utilized.
It might be a music or television streaming service or a gym membership.
Don’t have the time to do it yourself? You can use an app like Trim to find subscriptions you can cancel!
6. Sell Things Around the House
If you need some extra money on top of your salaried position, consider selling some items from around your home. There’s a good chance you’ll find several hundred dollars worth of “stuff” that’s lying around your home.
You can sell your items through local classifieds like Craigslist or Facebook Marketplace or you can use online services like eBay or Amazon.
Not sure what to sell? Here are a few ideas to help you get started.
- Children’s apparel, toys, etc.
- Books, movies, or other games and electronics
- Small appliances that are no longer used
- Clothes, jewelry, or other accessories
BONUS: This will also help you to declutter your home at the same time!
7. Cut Trips to the Coffee Shop
Getting the occasional coffee is okay! But a daily trip to your local coffee shop can quickly add up. While $5 doesn’t seem like a significant amount on its own, multiply that by 5 days per week and you’ll end up spending over $100 per month on coffee alone.
I get it, you still need your morning caffeine. Instead, stop wasting time sitting in a drive-thru line and make your coffee at home.
If you like specialty drinks, it might be wise to invest in an espresso machine to save money over time. While it could be costly upfront, it will be significantly less than a coffee shop will charge over the course of a year.
8. Consider a Staycation
If you’re like most people in a salaried position, you might get a few weeks off of work every year. For many, this is a time to hit the beach or visit their favorite getaway spot.
But this can drain your wallet each year. Instead of choosing a lavish vacation, opt for a staycation and visit local areas you enjoy to save money.
Here are some staycation ideas for your next time away from work!
- Go on an adventure. Take a camping trip to your local campgrounds and enjoy the outdoors. Find a nice hiking trail and take in the views.
- Have a cooking challenge. Cook each meal one day at home.
- Take a new exercise class. For those who like an active lifestyle, consider signing up for a new exercise class.
9. Make Saving Money Automatic
Many bank accounts will let you set up automatic transfers each month which can make saving money a breeze.
You should choose an amount that you feel comfortable with each month to transfer. You might want to consider opening a high-interest savings account. These accounts can pay much more in interest than a standard savings account.
Plus, depending on how much money you have to deposit, you may qualify for a sign-up bonus.
10. Refinance High-Interest Debts
If you have debts that incur large amounts of interest each month, you might want to examine if refinancing is right for you.
Those with credit card debt can consider taking out a personal loan with a lower interest rate to pay off high-interest credit card debt.
If you have a mortgage with over a 10% interest rate, now is the perfect time to refinance with rates lower than 3% in many markets. This can save you thousands of dollars per year in interest payments alone.
Similar to your mortgage, you might also want to consider refinancing any student loans you currently have to save money.
11. Use Cash Back Websites to Double Down on Rewards
Before spending money online, be sure to check out various cashback websites like Rakuten, RetailMeNot, or Ibotta to earn bonus rewards on your spending.
You can double down by taking advantage of any credit card offers available, coupon codes, or traditional credit card rewards.
This can save you well over 10% on your purchases and even more than 50% at some retailers.
12. Avoid Lifestyle Creep at all Costs!
Lifestyle creep, or the increase in your discretionary spending as your income rises plagues many of those relying on a salary as their main source of income. As you start to make more money, you’re likely to spend any additional income on status symbols like a new home or a new car.
Instead, you should allocate any additional money towards your savings account to help you save money while working a salary job.
13. Lower Car Maintenance and Fuel Costs
Driving your car costs money. Between routine maintenance and the cost of fuel, this can quickly become a few hundred dollar per month luxury.
Aim to lower these costs as much as possible by driving to maximize fuel efficiency and learning to perform some basic auto maintenance like oil changes and replacing brakes pads.
This can save you hundreds over the course of the year and can be quite simple to complete.
Want to learn how to complete an oil change? Check out the video below to get started!
Conclusion: Smart Tips to Save Money with a Salary
Saving money while working a salaried position is easier than you might think. By making smart money decisions, you can easily start saving money while working your day job.
Starting a side hustle, cutting your utility costs, and refinance high-interest debts are a few examples of things you can do to save more money with a salary.
Do you work a full-time salaried position and save money? Comment your methods below!