Save Money, Everyone has good intentions for saving money, but something always comes up. The car needs new tires, you need to get a new set of shoes/bags, the house needs a new roof—and just like that, saving money takes a back seat to life stuff. So you put it off. We often tell ourselves we will find ways to save money once we reach a certain milestone, like when you hit a specific age or get that raise you have been expecting.
Sometimes the hardest thing about saving money is just getting started. But in reality, you’ll only start saving money when you learn healthy money habits. The best way is to let your future needs to be more important than your current wants. You don’t need everything to line up perfectly before you start saving magically. Little savings can add up, especially if you do it consistently over time, and not doing several things all at once may mean that you can save each month significantly.
This step-by-step guide on how to save money will help you develop a simple and realistic plan so that you can save for all your short- and long-term savings goals.
Create a budget
Organize your recorded expenses into a workable budget. Budgeting helps you prioritize your expenditure and find a balance between spending and saving money across a whole month.
By checking your credit card statements, bills, bank statements, and receipts, you can work out all your regular expenses, such as your rent or home loan, transport, insurance, groceries, and electricity. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance.
Cut down on expenses.
A great step to save money is to figure out how much you spend on both business and personal and find a way to cut down on them.
Keeping a good record of your expenses over time will help you review your spending habits and cut off unnecessary spending that may be eating up your finances.
If your expenses are so high that you can’t save as much as you’d like, it might be time to cut back. Figure out how much you spend on both business and personal; identify nonessentials that you can spend less on, such as entertainment and dining out. Look for ways to save on your fixed monthly expenses like television and your cell phone, too.
Here are some ideas for trimming everyday expenses:
- Use resources such as community event listings to find free or low-cost events to reduce entertainment spending.
- Cancel subscriptions and memberships you don’t use—especially if they renew automatically.
- Review your cell phone needs
- Commit to eating out only once a month and trying places that fall into the “cheap eats” category.
- Give yourself a “cooling off period”: When tempted by a nonessential purchase, wait a few days. You may be glad you passed—or ready to save up for it.
3. Say goodbye to debt
Monthly debt payments are the biggest money drainage when it comes to saving. Debt robs you of your income! So, it’s about time you get rid of that debt. The fastest way to pay off debt is by listing out all your debts and start paying them from smallest to largest. Sounds intense, right? Don’t worry; it’s more about behavior change and determination than numbers. Once your income is freed up, you can finally use it to progress toward your savings goals.
Set Saving goals.
One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—perhaps you’re getting married, want to buy a house or start a business, or saving for retirement. Then figure out how much money you’ll need and how long it might take you to save it.
After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs.
Make savings automatic
Did you know that you can save money without thinking about it? Yup, a common problem when it comes to saving is that we often forget to do it. One of the best ways to save more money every month is to automate savings.
You can set up your bank account to automatically transfer funds from your checking account into a savings account every month. If that sounds scary to you, you can also set up your direct deposit to automatically transfer 10% of each paycheck into your savings account. This helps you save without having to think about it.
6. Start a Side Hustle
A good side hustle is about having extra income for you. A side hustle is any activity outside of your day job that helps you make more money. If you want to save money fast, your best bet may be a side hustle. There are countless side jobs you can start to make money on the side.
Delivery driver jobs are among the best because you can earn $20+ per hour.
Create and sell your own handmade goods.
Become an influencer
An underappreciated benefit of side hustles is that they can act as a sandbox where you learn how to make extra money legitimately.
7. Spend extra or unexpected income wisely
When you get a nice work bonus or start a side hustle that brings extra cash, inheritance, or tax refund, put it to good use.
If you’ve still got debt in your life, you’ll be better off using those funds to pay off your loans or the balance on your credit card instead of stashing that money away. If you’re debt-free, use those extra dollars to build up your emergency fund or put in your long term savings funds.
Master the 30-Day rule
Waiting 30 days to decide on a purchase is an excellent way to help you save.
Quite often, after a month has passed, you’ll find that the urge to buy has passed as well, and you would have saved yourself some money simply by waiting. If you’re on the fence about a purchase anyway, waiting a while can give you a better perspective on whether it’s truly worth the money or classified under your wants.
Watch Your Savings Grow
Review your budget and check your progress every month. Not only will this help you stick to your personal savings plan, but it also helps you identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.
There are many ways to save money every month. All you have to do is give some of these ideas a try. While they won’t all apply to you, you can combine multiple options and save several hundred dollars each month.
If you ever find yourself spending more than you earn, ask yourself what you could cut out or cut back to save some money.