Do you ever feel like you’re not good at saving? Discover how to save money with these 7 simple tips. Have there been times when you make plans to save, but it always falls through? Something always comes up; maybe the children need new braces, or you have to pay for a new course, or your house needs a new roof. It’s not like you don’t want to save, but saving money is always taking the back seat.
If you want to know how to save money effectively, you should first know that little drops of water make a mighty ocean. That is, every little change you make will add up quickly in the future. Also, set realistic saving goals and walk towards them.
Sometimes, we wait for the right time when there are no more expenses before we start saving. That’s not ideal. The best time to start saving is now. If you’ve been struggling with how to save money, these 7 proven tips will help you save more.
If you are trying to save but have a huge debt on your neck, start with clearing off the debt. It has been proven that spending more to pay off monthly debts puts a hole in your income (because of interest payments). The best way to get rid of your debt is to use the debt snowball method. Here, you pay off your smallest debts before paying the biggest ones. Once you are free from paying debts, you can make progress and easily save.
2.Track Your Spending
You need to know where your money is going to make changes effectively. So, keep track of all expenses. This means taking note of every coffee, cash tip, pizza, and regular monthly bills and subscriptions. You could use a pen and paper for easy recording, a free-spending tracker app, or a simple spreadsheet. Once you have your data, organize the amount spent into categories such as mortgage, gas, food, etc. Double-check with your bank statement and credit card to be sure you include everything.
3. Pay Yourself First
Immediately salary hits the account; most people have the habit of paying bills and clearing debts neglecting themselves in the process. Set up an automatic debit from your checking account to a separate savings account before spending. With time, the money will accumulate and can serve specific goals. So, if you have a goal, like a December vacation or just establishing an emergency fund, this will do. Whether it’s $100 that’s deducted monthly or $500, doing this is a healthy savings plan.
If you don’t want to spend time doing these monthly transfers, there are digital apps that will do the work for you. Do your research and see if they are a great option for you.
4. Find Creative Ways To Cut Down on Spending
If you can’t save as much as you want to, you can cut back on your expenses. Check out this article on How to Drastically Cut Expenses. Look at your expenses sheet and identify areas you can spend less on. These may include entertainment, dining, and monthly expenses and plans. Some creative ways that will help you spend less include:
Ask for discounts (and pay in cash): You’d be amazed at the special offers you’re missing out on because you never ask. Next time you get tickets at a museum, movie theatre, or sporting event, ask if they have special discounts for students, senior citizens, teachers, or military members.
Search for free activities: Find free or low-cost entertainment events in your locality using your local resources.
Eat at home/ pack your lunch: This is another great daily money-saving tool. Make most of your meals at home and pack your lunch instead of eating out daily.
Cancel automatic subscriptions and memberships: It’s high time you cancel subscription packages you don’t use regularly. Ensure you turn off auto-renew on purchases. You could share memberships with friends and family for important subscriptions you use, like Netflix or Hulu. This helps you and your friends spend less.
Delay purchases: If tempted to buy a non-essential item, consider waiting a few days before buying. You may realize you no longer need it. If shopping online, you could just leave it in your cart. Sometimes, the retailer may give you a coupon if they notice you abandoned the cart.
5. Set Savings Goals
You can achieve anything when you set realistic goals. The same thing applies to money. Set a specific and realistic goal. It could be either a long-term or a short-term goal. Categorizing helps you estimate how much you need and how long you would need to save daily or monthly to reach your goal.
An example of a short-term goal is a down payment for a car or a year-end vacation. A long-term saving goal could be retirement or saving for a child’s college.
6. Spend With a 50/30/20 Budget
It’s always best to spend with a budget. A good rule of thumb is to follow the 50/30/20 rule for money management. This means you spend 50% of your income on necessities, 30% on wants, and 20% on savings and debts. However, if any of your allocations exceeds these percentages, you could adjust appropriately.
7. Prepare Before Going Grocery Shopping
To prevent overspending, prep before going grocery shopping. Even after making a budget, most people are surprised with what they spend at the grocery store every month. So, before stepping out, check what’s in the pantry. Please make a list to prevent impulsive buying, and stick to it. If possible, leave the kids at home, so you don’t buy more than you really need.
Final Thoughts On How to Save Money
Knowing how to save money effectively is essential. Start by eliminating debts and set specific and realistic saving goals. You could also reduce (and indirectly save) by cutting down expenses. Saving money can become the next easy thing for you. With the right mindset, change in habits, and financial tools, these will set you on the right track.
Disclaimer
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