We all love surprises. Right? But not when it’s about our money. Are you always scratching your head paying your bills, feeling broke at the end of the month, and having no savings in your bank account for rainy days? Sit tight, and read carefully about these life-saving budgeting and saving tips (You will thank us later).
We are not telling you that you will be rich in one month and will have lots of savings without feeling broke. You can take baby steps as every dollar you spend matters. For example, you can start making lunch at home rather than dining out or getting takeaways. Similarly, you can make coffee at home rather than buy from Starbucks daily. You won’t believe how much difference that will make in your life. Here are some other tips:
Turn unnecessary lights off: We are habitual to having all lights turned on all the time. You will notice a huge difference in your electricity bill if you adopt this habit
Are you paying for streaming and subscription services that you no longer use? It’s time to cancel those subscriptions. You can use family payment plans and that way split the bill between different people
Stop making impulsive shopping decisions. You need to plan each and every purchase you do and think twice before buying it, do you really need it or not.
Use the 50-30-20 Rule
The 50-30-20 is the best budgeting rule so far. That means you allocate 50% of your monthly income for basic expenses (bills, groceries, and utilities). 30% of your income will go to your luxury spending and 20% will go to your savings.
You will gradually start feeling a balance in your financial life and will start having your expenses in control and using your money more efficiently. These three categories are so basic to budgeting and saving and will save you the hassle of digging into specifics each time you spend your money. Trust us this rule is the answer to all your money problems without doing lots of maths. You need to plan ahead.
Start Using a Budgeting App
Budgeting apps have become so famous and we all have downloaded them at some point and then deleted it later on. But did you know you can increase your savings to ten folds if you start using a budget app? There are a lot of apps that can automate your saving process and deduct money from your account when you get a paycheck. Also, these budget apps track your expenditure, and savings and even predict your spending. You can create three categories according to the 50 30 20 rule and monitor everything and even analyze where you can cut off your expenses and save more.
Compare Insurance Rates
It is not smart to stick to one insurance company for a lifetime without having the idea that you can get lots of discounts if you change your company. You may also get a discount if you get both your car and home insurance from the same company. Always double-check that your company is giving you discounts that you are entitled to as per the company policy.
Find Ways for Saving Your Rent Bills
Are you living in a rented space and always have trouble paying your rent? You may consider moving to a small space or try finding an apartment with the same amenities but a lower rent. You can also consider areas closer to your work location to decrease the fuel charges and save your time as well.
Learn About Bank Bonuses
Did you know that banks offer bonuses up to 250$ when you have direct deposits and have a minimum balance in your account? Before you sign up for a bank bonus read all the instructions with care and follow all the requirements. Also, some banks have minimum balance requirements that you need to maintain and have some fees that may surpass the bonus amount.
Automating Your Savings
Forgetting about saving is very easy and spending your saving money is easier. Therefore automating the whole saving price is the best thing you can do to secure your future financially. There are a lot of banks offering this feature and cutting your saving from your paycheck. In case your bank does not offer that service, you can use some third-party app and move your money directly to your saving account. It will be like you never had that money.
Stock Your Weekly Food and Monthly Grocery Items
Stocking up your pantry monthly and buying weekly foods for cooking (vegetables, meat, cheese, etc) can help you take control of one of the most expensive categories in budgeting. As discussed earlier you can make your own food and cut down on eating out.
Travel Cheaply
After the COVID traveling industry has seen a hike and all Americans went to spend the summer holidays. However, when making travel plans, you need to create a trip budget in advance and allocate a fixed amount to each category like travel, hotel stays, food, shopping, etc.
Book your flights in advance for a cheaper trip, and plan your stay at an Airbnb or less costly hotel. Consider eating a few meals outside and preparing some yourself. Also, consider using your credit card to avoid transaction fees.
The Typical American Budgeting and Saving Pattern
Almost one out of 3 Americans have difficulty paying for a $2000 emergency. Americans who dont have enough saving end up in debt with wavy interest rates leading them to financial setbacks for years. A recent study showed that Americans tend to spend more than save and that results in them being broke for years.
When you are trying to save money after you have made your expenses is very difficult. Consider saving first then budgeting and spending. Making direct deposits into your saving account is the best way to save money and have increased financial security. After all, you won’t miss what you won’t see. You won’t miss the money you didn’t have in your hands. Good luck and happy savings 🙂
Disclaimer
Information provided on InflationCents.com is for informational/entertainment purposes only. This information should not be considered as professional advice. Please seek a certified professional financial advisor if you need assistance. Rates and offers provided by advertisers can change frequently and without notice. We attempt to provide up to date information, but it could differ from actual numbers. Inflationcents.com may be compensated by 3rd party companies that are mentioned either through advertising, reviews, affiliate programs, or otherwise. All reviews and articles are based on objective analysis and no compensation will tilt our opinion.
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