Spend Smart, Save More

Hi folks! I hope you're all doing well. My name is Lars Guo, and this blog is about how to keep more money in your pocket without feeling deprived while saving. I am a guest writing for Middle Class Finance. Thank you so much Middle Class Finance for allowing me to write a blog post for you.

Some of these tips might be things you already know, while others may be less obvious. No matter what tips are mentioned here, please be respectful to all vendors, cashiers, and the people around you if any of these suggestions affect them. I'm not responsible for anyone choosing not to follow these tips, rules, and/or suggestions. Please enjoy!

Tip 1: Have a Budget

Having a budget is extremely important so you know how much money is coming in and how much is going out. List every dollar that comes in so your budget is accurate. Put each expense category into its own cell in a spreadsheet and record everything, even variable spending.

This gives you clarity on where your money is going and what you may need to cut back on if necessary. Track the date, amount, category, balance, cash flow, and how much you have left over. Setting savings goals also helps with motivation. If you need a step-by-step guide, check out how to create and stick to a budget.

I've written a full blog on budgeting if you want more detail: Practical Steps to Create a Successful Budget for Your Money.

Tip 2: Choose the Right Credit Card (If You Can Handle It)

If you can properly control your spending and choose a credit card with benefits, this can be a great way to save money. Many cards offer cash back or travel points, depending on your setup. Ideally, only use credit cards that give you some form of benefit.

Cash back puts money directly back into your pocket and can be redeemed to lower your balance. Travel points can make traveling cheaper when used strategically.

If you want to learn more about credit cards and how to use them responsibly, check out my full post here: Credit Cards Explained: Their Value and Risks in Today's Market.

Tip 3: Negotiate (Respectfully)

If you know how to negotiate, you can sometimes earn more when selling items or pay less when buying products and services. That said, never harass workers or managers. If a business has a clear no-negotiation policy, respect their rules at all times.

For example, I'll keep this person anonymous and call them Person Y. When I was in 6th grade, Person Y tried to buy a watch in China, where bartering was allowed at the time. They pushed too hard and ended up getting kicked out by the vendor. I suggested 40 yuan as a fair price since the watch was originally around 80 yuan. Person Y tried to offer 10 yuan, which was nowhere near reasonable.

A successful negotiation I had was when I sold my old video games and consoles at a game store. They offered around $230 in cash. I politely asked for $250 and a pack of Magic: The Gathering cards since it took a long time for me to get helped. This worked because I stayed close to the original offer and made a reasonable counteroffer.

Another time, I visited one of my favorite stores on a special day with limited funds. The item I wanted was $25. I asked for around $15. They lowered the price a bit, and I suggested meeting in the middle at $18. This was slightly risky since it wasn't perfectly in the middle, but it still worked out.

The final example was selling games and consoles at a different store. I called ahead to confirm it was allowed. The clerk offered $90 in cash or $110 in store credit. I countered with $100 in cash since it was exactly in the middle. I didn't ask for $105 because that would've pushed too far in my favor. Meeting in the middle makes negotiations feel fair and increases your chances of success.

Tip 4: Save All Coins (Including Pennies or Your Local Equivalent)

Saving coins you find when no owner is around can slowly add up over time. Of course, this only applies when the money is clearly unclaimed. Wallets, dropped money you saw someone lose, cash registers, tip jars meant for other staff, and fountain coins are all considered owned money and should not be taken.

If you receive coin tips legally as part of your job, keep them. It adds up more than you might expect. Over my lifetime, I've probably saved over $100 just from keeping coins people didn't want. That's easily enough for a nice meal or a small gadget.

Many YouTubers also do savings challenges and are surprised by how much they accumulate, using that money to pay off debt or fund trips.

Tip 5: Try Savings Challenges

A lot of people enjoy savings challenges where they put aside a dollar or more each day with a clear goal in mind. Seeing your progress grow is motivating, and many creators who focus on saving money talk about how these challenges help them build momentum and feel more financially free.

Visual progress makes saving feel rewarding instead of restrictive. For more ideas on reducing everyday costs, see our frugal living tips and where to cut your budget first.

Tip 6: Have Debt? Pay It Off as Soon as You Can

If you have debt, compound interest is working against you. A small balance can grow quickly if left unpaid, which worsens your financial situation. With credit cards in particular, interest can pile up fast and negatively affect your credit score.

Paying off debt as soon as you realistically can saves you money in the long run and reduces stress. For a detailed strategy, read how to pay off credit card debt.

Tip 7: Invest Your Money

Putting your money into investments like stocks and high-yield savings accounts can allow compound interest to work in your favor. Always read the fine print, as certain rules can affect whether you qualify for interest or bonuses.

When investing in stocks, don't put everything into one company or one asset. Diversifying your investments helps manage risk and protect your money over time.

Conclusion

Thank you so much for reading this post. I hope you enjoyed it and found something useful you can apply to your own life. If you'd like to read more of my writing, check out my blog at LG Jinsei. If you want to give feedback, feel free to email me at fotaquest@gmail.com.

Frequently Asked Questions

What is the best way to start budgeting?

Start by tracking every dollar coming in and going out for one full month. Record the date, amount, and category for each transaction. Once you see where your money goes, you can set realistic limits and savings goals. A free tool like Middle Class Finance can help you organize everything in one place.

Should I pay off debt before I start investing?

In most cases, yes. High-interest debt like credit cards costs more than typical investment returns. The Consumer Financial Protection Bureau recommends paying off high-interest debt first, then building savings. Once your high-interest balances are gone, you can shift that money toward investments.

How do I choose between the debt snowball and debt avalanche methods?

The snowball method pays off the smallest balance first for quick wins, while the avalanche method targets the highest interest rate first to save the most money overall. Either approach works as long as you stay consistent and pay more than the minimums.