How to become a money saving expert depends largely on the interpretation of the term. For some, a money saving expert is a person who manages their own finances with success, watching good decisions turn into bankable funds for the future. For others, a money saving expert might be a financial professional, able not only to mind their own money but assist others in learning to save and invest wisely. Becoming a professional money saving expert may take some education and career adjustments, but just about anyone can get better at managing personal funds.
Nearly all financial experts stress that organization is the key to becoming a money saving expert. Knowing how much money is coming in, where and why it is going out, and how savings can be maximized cannot be done without properly organized finances. To get funds in order, it may be worthwhile to start a spreadsheet budget or download free budgeting software. Some software can even directly link to bank accounts, giving it the ability to track income and expenditures and compare them to savings goals. Learning how to track a budget can teach valuable lessons about where money that could be saved is really going.
A money saving expert is likely to have some basic knowledge about investing. Traditional savings accounts typically have such a low interest rate that they are only marginally better than stuffing money under the mattress. Not only that, traditional savings accounts are easy to plunder for impulse spending, which can set back a savings plan by years. Consider investing at least some part of savings in a retirement account, money market fund, or other high-return, relatively safe investment. Using higher-interest savings accounts helps money work harder to generate more money, and can also reduce the risk of diving into savings by imposing stiff penalties on early withdrawals.
Naturally, the best way to save money is to earn more than is needed for basic expenses, but many people feel that a full-time job is the extent of their earning capacity. In truth, there are many small ways a money saving expert can earn extra cash through activities that don't take up a lot of time. Building an informational website and linking it to advertisements is one way to passively generate income. Some people make extra money by selling unwanted items through auction websites or even yard sales. In towns with a lot of movie and television production, a person can even earn a few hundred dollars as an extra for the day.
To become a professional money saving experts, a person will usually need at least an undergraduate degree in finance or accounting. In some places, a person can also take an exam to become certified as a professional financial advisor, though this may require work experience and education as well. Professional money savings experts often find jobs as estate planners, financial advisors, investment managers, or even radio and television personalities.