10 Rules for Saving Money and Being Debt Free by 40

Everyone's dream is to be debt free and not have to worry about money again. But it can be difficult to save money, especially when you're young, without knowing what you should be saving and how much. This blog post will help you break into a lifetime of being able to save with ease and never worry about spending too much again.

It all starts with rules 10 1o on the list below. Once you master these, you'll be able to save way more than $10k $20k a year.

1. Don't buy things you don't really need

When it comes to saving money and living a debt free lifestyle, the most important rule of them all is to quit buying things that you don't need. This includes clothes, shoes, handbags, and any jewelry. I'm sure we've all been in a mall or bought something on impulse that we'd never use but ultimately ended up not wanting it at all. It's important to have this rule because it saves us from spending too much money on stuff that we don't need.

2. Pay your bills on time

Always remember to pay your bills on time. The consequences of being late or missing payments can be serious, especially if you're paying with a credit card or another type of loan. Never miss a payment, and always try to get your money to the company before the due date. This will ensure that you don't end up paying late fees and penalties.

3. Don't use expensive credit cards

If you have a credit card, only use it when it's absolutely necessary. If you don't really need to use it for a big purchase or a vacation, then don't use it! The interest you'll pay on your credit card can really add up, so try to avoid using it as much as possible. In the long run, it will save you money.

4. Reduce your energy costs

If you live in the United States, there are many ways to reduce your energy costs and save money at the same time. Turn off lights when they're not needed and unplug appliances when they're not in use. You could save $80 a month by doing this. It may seem like a lot, but that's about $1,200 in a year.

5. Have an emergency fund

You should always have an emergency fund that you can use if you lose your job or if unexpected expenses arise. The money can be used to pay for your mortgage or rent, food and other everyday expenses. Before using the money though, make sure you really need it because it won't be easy to replace. Your emergency fund is more important than any other type of savings account. Having one will help you live without debt because signing up for credit cards can be too tempting once you run out of emergency funds.

6. Save for retirement

If you want to save money, but you're still in your 20s, you should try saving for retirement. It's something that most people put off until they're older. But saving early will allow the money to grow while it's still in your hands. Start at least 6 months before you reach your full retirement date and invest in a mix of different stocks and bonds. This will help the money grow faster because it will be invested over a long period of time.

7. Pay off your credit cards on time

If you're paying on credit cards, it's easy to just pay the minimum payment that is required every month. But if you really want to save money, you should pay more than just the minimum. This will allow extra interest to build and create a higher balance on your card. The amount that it grows to can be substantial and help you reach your goals a lot faster.

8. Eat out less often

If you each eat out at least once a week, then you could end up spending $1,650 $2,700 each year. Start by cutting back by only eating out for special occasions. Then when it's time for regular meals and snacks, order something much cheaper than what you normally would choose! You could save $600 $1,000 each year by choosing food that costs less money.

9. Buy used instead of new

Sometimes we just can't afford to buy things new. So we end up buying used instead and saving money in the long run. Buying used is a no brainer of course, but make sure you only buy things that are in good condition because you could get a lot of wear and tear out of them. You should never ever buy something brand new that looks like it could fall apart or be broken easily. You could save $300 $500 a year by only buying used items when possible.

10. Get rid of unnecessary clutter from your home

Clutter makes our homes look disorganized and cluttered, which can often cause stress and anxiety. This can cause us to have trouble sleeping at night and not feel good about ourselves. We end up not doing anything that we should be doing because we're worried about how our home looks. We should try to get rid of unnecessary clutter, including things like magazines, books, newspapers and old clothes in your closets.

If you'll do this, you could save money in the long run by not spending money on cleaning supplies or buying expensive new furniture just because it looks good.

Conclusion

Living a debt free lifestyle isn't difficult and is attainable for anyone. In fact, you can have more than $20k saved in your retirement account before you're 30. But that's not going to happen unless you keep the rules I've given you above. Once you master them, it will be easier to save money and live on a budget so that you can reach your goals faster. Then once you've gotten there, it will be easier to continue living on a low income, which means more time for travel and other fun things.