Do you ever feel like it’s difficult to save money no matter how hard you try? You try hard to spend less, but something always comes up. Life gets in the way—the bills keep piling up, your car breaks down, your home needs some renovation, it’s always something or the other and savings take a backseat. Sounds like a familiar story, doesn’t it?
The fact is that you’re not alone and you don’t have to wait for things to fall into place before you start saving money either. Spoiler alert: If you wait for the “right moment” to arrive, it never will. ‘Now’ is the perfect time to begin saving.
To make things even simpler, we’re jotting down 5 super easy strategies for you to start saving money and breathe new life (and money) into your budget.
- Record Your Expenses
To begin saving money, you must first determine how much you spend. Keep track of all your costs, including coffee, groceries, and cash tips. Once you’ve gathered your information, sort it into categories like petrol, food, and rent payments, and add up the totals. Always double-check your credit card and bank statements to make sure you’re not forgetting anything. This way you’ll always know how much you are spending and also get a fair idea what are your fixed expenses and where you can do with a little cutting back.
- Start a Budget
Once you start organizing your recorded spending into a viable budget, you will have an idea of how much you spend in a month. Your budget should show how your costs compare to your income, allowing you to budget and avoid overspending. Always remember to account for costs that occur on a monthly basis but not every month, such as your car/bike service and maintenance.
- Automate Your Savings
Automate your savings contributions if you’re not sure your resolve will stick or if you want to make the process easier. A percentage of your income will be automatically deposited to your savings account, or an amount you specify will be transferred from your checking account to your savings account each month. You won’t miss the money that was never in your possession to begin with.
- Monitor Your Small Spending Habits
Savings efforts aren’t always thwarted by large costs; tiny expenses might build up to be a significant financial drain. To reduce your expenditure and improve your financial reserve, follow these steps:
- Look for the best deals on utilities, insurance, TV, internet, and cell services by shopping around. Also, make sure you take advantage of any discounts you may be eligible for.
- Check your bank account statements for less visible costs, such as account maintenance, ATM use, or a low balance. If your accounts have a lot of fees, it might be time to switch to a less expensive banking institution.
- Monitor your everyday expenditures and eliminate unnecessary expenses such as out-of-town meals, snacking trips, and expensive coffee.
- Explore free and low-cost entertainment choices such as local concerts, theatre, and athletic events, as well as parks, beaches, and hiking trails.
- Bring in Extra Money
When cutting costs isn’t enough, the only option to generate enough free cash for savings is to raise income. You can do the following:
- Get rid of things you don’t use often by selling them online
- Reward points from a credit or debit card can be redeemed for cash
- Request a raise or more hours at work
- Take up a second part-time job or make money from your interests or abilities by teaching, yard work, dog walking, writing, creating, performing music, or handyman work.