To REALLY Save Money, Do These 5 Things (How to Save Money & Budget)!

In which we discuss the 5 essential and simple steps to saving money! We also discuss how to budget, how to actually STICK to a budget, and (most importantly) what we learned from the classic piece of American cinema, BLANK CHECK.

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Hosted by:
Emma Mills

Written by:
Amanda McLouglin

Edited by:
Scott Faris

Directed by:
Mike is also a Young Adult novelist. His book, THE END GAMES, is available at all online booksellers, including

Executive Producers:
Hank & John Green

[stewdippin]

A way I like to stay on budget is buying gift cards for the stores I frequent. Like if I put $50 on a gift card for groceries, I won't spend any more than that. This helps me to live within my means and to actually look at what I want vs. what I need if I go over at the checkout line.

[HennyMusgrove]

A library card is one of the biggest budget savers ever. If you're responsible about returning items on time you have a never ending supply of FREE books, movies, magazines, ebooks etc. You've already paid for it through taxes, why not take advantage of it?

[Meloncov]

It's alluded to in the video, but it's worth saying explicitly; when you first make a budget, make the budget based on how you spend money now, not how you wish you spent money. Only once you've figured out your current spending should you start trying to cut how much you spend in a category.

Otherwise, you're likely to accidentally give yourself unreasonably difficult goals and end up just giving up.

[ErikaBabs]

I've figured out my weekly budget on "extras" (eating out, coffee, shows, etc) and take it out in cash. It's a lot easier to see what you've spent based on how much is left in your wallet instead of remembering what you've charged to your credit or debit cards

[thisisnancybot]

Budgeting tip on groceries- The "Unit Price" model of grocery shopping is often recommended. Look at the individual cost per unit, as opposed to the overall price (the amounts are often right next to each other on the shelf). You might find that the big pack of toilet paper cost less per role than the small package, and you'll end up saving money in the long run. Be careful with this when it comes to perishables though. I had a roommate who would always buy a gallon of milk, as it was cheaper that way, but she rarely got through half by the time it expired. It would have been a lot more affordable (and less wasteful!) if she would have just bought a half gallon of milk. 

So unit price is a powerful tool, but also pay attention to your own consumption habits. Throwing out more food then you're eating doesn't help anyone!

[balmylagoon]

As someone who works in a bank, THANK YOU for this video. It's utterly astounding to me sometimes the amount of people who do not track their spending. Some people truly are clueless. I'm not talking about those who are just inexperienced and want to learn, I mean the people who have been through life long enough to have had the opportunity to figure out their own budgeting techniques and has never taken the initiative to learn. They exist and they are many. I really wish there were more programs in school that cover finances better.

[RealLifeMoney]

Physically writing down what is coming in and going out is a great start and could be an eye opener. I found that having a goal to save for is a good tip instead of saving money just to save money which is boring and will probably fail.

[CheersKevin]

Important! Don't forget that there's "hypervariable" expenses - those costs which may not even occur every month. Things like gifts, getting oil changed, traveling for the holidays. These *are not* part of your "emergency fund". Your emergency fund is ideally the "oh no, I lost my job, my apartment, my car, everything...but hey, I've got a few months saved up, so I'm safe!"

[RealmsQE]

I use a 50-30-20 Plan. 50% is my needs (rent, food, utilities, etc.), 30% is my wants (movies, video games, dining out), and 20% is my debt repayment and savings (paying my student loan bill then putting the difference away).

[DanThePropMan]

I haven't tried Mint, but I'm really liking You Need A Budget. It really encourages and makes it easy to take a more active hand in getting your finances on track, and helps you think and plan long-term. It's not free, but it's a one-time $60 cost rather than a subscription, and it offers a 34-day free trial.

[ragnkja]

Most grocery shops (at least here in Norway) reduce their prices on certain products each week. If those are things you use and that you can store easily (tinned foods are awesome), buy them in bulk when they're cheap.

[drewliedtke]

Biggest expense I've seen as a mid-twenties that I wasn't expecting: laundry... Working several jobs between two people that have dress codes for each makes for a lot of laundry.

[StrayVagabond]

I round everything to the fives. In my spreadsheet I round all income down and all expenses up to the nearest five dollars. So instead of recording that I earned, say, $928.31, I just record $925, and instead of spending $6.77 as McD, I say I spent $10.

Then don't look at your account, just at your tracking. At the end of the month I usually have at LEAST $20 extra.

[rzavala]

If you work in food service and make tips, it's helpful to set aside your tips for a specific expense.  For example, my coworkers and I usually use our tips for food money.  On an average day I only make about $7-10 of tips a day, but that's usually enough to get a cheap dinner or lunch for the day to supplement regular grocery shopping!

[downriverproductions]

I haven't found that bringing my lunch to work really saves very much money. Maybe like $4 vs 5 or 6 for a cheap lunch out. It's worse if you're trying to eat healthy while eating out though. Meat and alcohol can be big portions of your food budget, so those are things to look at cutting if you want to save some money.

[TiasTravels]

I normally hate math, but budgeting is one thing I love doing. It makes me feel so much more organised and less stressed out about money. 

[JanelChristensen]

Mike, I am TOTALLY with you on that at 4:08. I *HATED* that so much, especially since I could never sell them back for what I had paid for them, if I could sell them back at all.

[TheImaginaryStar]

When I first started out on my own, it was difficult for me to categorize things because I would pretty much exclusively shop at wal-mart or target, where I could buy literally everything. I found it helpful to keep the receipt and colour code my purchases (green for food, purple for clothes etc) then I would add up the totals in a spreadsheet. It really helped me to see where in wal-mart my money was going. Before, if I spent $100 at wal-mart it would feel like i bought $90 in food and then I would constantly wonder where all the food went! When in reality, I was spending $40 on food and $60 on misc. items. 

[mollymaree]

I split my income before I do anything. 10% to charity, 40% to fixed expenses, 25% to savings split 50/50 between an emergency fund and retirement and 25% to flexible spending. Any extra in fixed expenses gets moved to my emergency fund. So far it's been working for me but this is also my first year with an income that supports this.   I also use a separate checking account for all my bills, it makes things much easier for automatic drafts. 

[ARTiculations]

I tracked every single dollar of my expenses 3 months ago and I gotta say it helped so much! I realised just how much money I wasted on that morning coffee/muffin run (not to mention probably also unhealthy). I had realised I was spending almost $150 on breakfast every month - that's $1800 a year!! I now brew my own coffee and make my own breakfast most days.