10 Tips to Start Saving More Money Today
No one is immune to the economic challenges ahead, especially when it comes to such high prices on goods. Have you seen the price of eggs lately?! Whether you’re saving up for a big purchase like buying your first home, or want the peace of mind of having a rainy-day fund, we all could benefit from putting more money aside and preparing for the future. In honor of January being Financial Wellness month, I wanted to share some tips that I have personally used to help save money and work towards my financial goals.
If you have debt, sometimes it can be hard to decide whether to put any extra money at the end of the month towards paying off that debt or putting it into savings. In our family, we first started with putting any extra money into building an emergency fund of $1,000. Then, once that fund reached the $1,000 goal we started putting any extra money towards paying down our debt.
Establish your budget. First take a look at what recurring payments you have every month (think phone bill, rent, car payments, minimum credit card payments, etc.) and allocate how much money needs to go to cover those. Then, take a look at your more fluid or flexible expenses, that may vary each month. Look at the last few months and find an average for how much you spend in categories, such as filling up your gas tank, paying for electricity, groceries, etc. Once you have an average, set a budget based on that amount. Then lastly, look at some of your optional extra expenses that you will have like going to restaurants, events or fun activities you plan on attending, clothes or extra misc items you plan on buying.
Establish a budget that does challenge you, and will cause you to cut back a bit, but also make it realistic and still allow you to enjoy your life. For example, if you see that for the last few months you have gone out at least twice per weekend, and you pay for fast food 3 times a week, think about ways to cut back. Maybe you reduce it to only going out to eat one weekend night and only buying fast food once during the week. Everyone’s goals and areas of potential challenges may vary, so this is really going to come down to looking at where you can improve and also prioritizing what areas you would rather spend your money on vs. another. Once you set your budget, move on to the next step.
Sticking to your budget is one of the most important parts of the process, that is going to be recurring and always evolving as your situation changes. If you’re struggling to stick to it, try using a budgeting app, or the envelope system. Each will require you to put a set amount aside for each category and not allow you to pull more than what you set aside.
Set up an automatic savings plan - typically, this looks like setting up a savings plan with your employer so that some of your paycheck gets put into a savings account. In this way, you never actually see that money which means you will forget about it and over time, it will start to add up without you even having to put thought into it.
Start small. Thinking about saving $10 a week, will be a lot easier to stick to then thinking you’ll save $200 every month right off the bat.
Consider establishing a 24-hour rule. This means that before you make any unnecessary purchase, you stop yourself and wait at least 24 hours before making that purchase. This is especially helpful if you do a lot of online shopping (guilty!). A lot of times, by the time that timeframe passes you’ll realize you don’t want it as much or you’ve found something different you’d rather put your money towards. And if you do still want it, that tells you it’s worth buying.
Calculate your purchases by hours worked, rather than cost. This can make a huge impact to test how much you truly want something. Sometimes the monetary amount doesn’t resonate with us, as much as time does. Time is so valuable and if you think about how many hours you would have to work to pay off that item, it may stop you from purchasing on impulse. Again, if the item passes the test, then you know its a worthwhile purchase.
Window shop or add to cart and delete. Now, this one I say with a little disclaimer. It’s not one you should start with, since it does require more self-control and won’t work for everyone. But once you’ve established better habits and have built up some self-control, you may benefit from window shopping, trying on items and putting them back, and/or adding items to your cart and then delete them. For me, shopping becomes a habit and something I do when I’m bored or looking for that pleasure that my brain gets from making a fun purchase. When I know that I’m in that mood but I don’t have the money to buy unnecessary items, I will actually try on items and put them back or I will add items to my cart and then delete them the next day. It’s similar to number 6, where simply thinking about it and the possibility of buying it will sometimes fulfill the impulse without actually spending any money.
Designate one day per week to a “no spending day.” Sometimes breaking up the goal into small pieces, can make it much easier than thinking you’ll need to make tons of sacrifices every single day. If you designate one day to this goal, you will have a shorter focus that will be easier to attain and can save you a lot of money overtime. As you learn new recipes, free activities to do at home, etc., you’ll naturally start spending less money as you apply them any day.
Become a couponer and bargain shopper! When you do go to shop for items you need for your home, all it takes is a few extra minutes online, to find a lot of savings. Prior to stepping foot in the grocery store, I always hop on to my grocery store’s app and add coupons for any items relevant to me. There is always at least one, but usually more, coupons that will apply to what I was planning to buy anyway. If I can save a few dollars in a couple minutes, on items I would be buying anyway, why not?! Also, paying attention to when major deals are going on, especially when it comes to clothing or other unnecessary spending, can also help you save in the long run. It also helps you build that self-control and limit impulse buying. If you know you really want a new pair of sneakers but they’re not on sale, you will wait and some of the earlier tips will come into play. Once a deal does roll around, if you still want them, you can feel confident that it was a good purchase.
What other things do you do to help save money?! I’m always looking for more ways to save money, so share your thoughts in the comments!