It’s easy to fall into the trap of believing that saving money is a hard task to accomplish. In our everyday lives, we get caught up in knowing that just about anything we need or desire is available, 24/7. Separating the “needs” from the “desires” is an important part of sticking to a budget- especially if you’re working to save for a wedding, a vacation, a new car – or just trying to add to your retirement fund. Read on as we discuss how to become more successful at saving money.
Learn to save money.
Yes – I said “learn” how. Some skills are ones that we take the time to learn and perfect. A good majority of adults were never actively taught by their parents to save money. Not everyone was born to be a personal finance whiz! Don’t just follow tips to save money, make it a point to learn from the solid success of others. Personal finance gurus like Dave Ramsey writes books that can help you to learn how to manage your household finances, which ultimately can help reduce debt and reduce stress.
Setting aside a certain sum each month as an emergency fund is important. In the long run, this fund can be used to in the event of an emergency, a sudden important expenditure, automobile repairs, health expense, etc. Another tip: start saving your change. Socking away the coins out of your pants pocket or purse every day can really add up. Most people can save about $40/month in coins!
Spend less and stick to a budget.
The simplest way to start is just by spending less. If you take a few minutes to review your monthly expenditures, you can still find something you’ve indulged on instead of saving up. Once you discover this little extravagance, cut back. It’s as simple as that.
In order to figure out what’s the ideal amount you can spend, keep track of your earnings as well. Unless you know what’s coming in, it’s difficult to determine what goes out. Another reason why this is a great idea is because this puts your monthly expenditure and savings in perspective and step one becomes much easier to take care of with the help of a budget. Short of asking for a raise, sticking to a budget is one do-able way to gain better finances.
Pay off your debts.
Maintaining a mortgage loan or a car payment is understandable, but excessive credit card debts is not. Many of the bills we’re racked up are unnecessary expenses. In order to effectively start saving up, it’s important to clear up your excess debt – and this takes a lot of discipline! Once you get any past-due balances back on track, pay off your outstanding debt each month. End of story. Paying your bills on time is one of the simplest ways to save money, by not incurring late fees and hefty interest accruals. All you have to do is ensure that you pay your bills on time and hence avoid late fees. These little savings contribute in towards the building up of a significant amount in time.
If credit card debt is a problem, consider using a pre-paid card instead. A prepaid credit card can help you control your spending, because the available balance on the card is whatever you have loaded on to it, or possibly the amount you have directly deposited to the card each payday. A prepaid card makes it easy to shop online, book travel arrangements, or rent a car – without the risk of running up a high-interest balance.
Lose the bad habits.
- Coffee: Buying coffee every morning before work (or in the afternoons, on your break) can cost as much as $30 each week! Save money by purchasing a thermal mug and brewing your coffee at home.
- Eating out every day. Besides saving money, packing your own lunch is a healthier alternative compared to greasy fast food. It can be difficult to make lunch every morning, but just a few times a week can help tremendously.
- Speeding I never understood why people race to the next traffic light. Technically speaking, you’re not going to make it to your destination significantly faster. With rising gas prices, it’s important to watch your MPG. Don’t accelerate too hard on your gas pedal. I’m not telling you to drive like a grandpa, but if you treat your car with TLC, you’re definitely notice an increase in your mileage!
- Smoking, drinking, and other vices. How much do you spend weekly on cigarettes? Do you spend money every weekend at the clubs? How about gambling habits?
Plan to spend money.
Say you’re on your way home but there’s still an hour to go before your kids get home from school and you’d like to kill time. Random, unplanned shopping trips can often lead to over-spending. Most of the time, we end up scouring the store for potentially useless items, just because they look interesting and/or we’d like to try them out and so usually we end up buying them. Don’t shop without a list, and a solid purpose for being in the store to begin with.
Another thought: buying bulk is in style. You don’t have to buy a truckload of groceries, but as far as non-perishable goods are concerned, try buying in bulk whenever you can. Cereals, canned goods, toilet paper, pasta, shampoo, soaps, and numerous other items can be bought in bulk. Buying wholesale ensures you pay less per piece and also saves you the trouble of making frequent trips to the grocery store every time you run out of toothpaste or toilet paper. Purchasing your prescription medication by mail or in a 90-day supply can save money over refilling each item monthly.
Become a smart-shopper.
When buying anything, it is imperative you keep track of various offers, sales, and the price differences in a mall and a regular store. These small bonuses go a long way in helping you save big bucks when you review your budget at the end of the month. Bonus tip: check farmers’ markets for the best bargains on fresh produce.
Buying online can be a big money-saver, if you know where to look for great deals. This is especially true for electronic items. Whenever you go to a retail store, write down the brand and model number, then go search for this item online. You will almost always find better prices with online retailers.
Buddy Up.
Trying to stick to a budget when your husband/wife/partner is a spender is not easy. Try to get your whole household involved in sticking to the plan and living a frugal lifestyle. If your spending plan fails during the work week, and you’ve decided to start bringing your own lunch, get some co-workers on board so you’re not eating alone in the break room. Friends and family can be a great support system ny holding us accountable for our spending actions.
When you start paying attention to where your money goes, budgeting isn’t as hard as one might think. Whether you utilize computer software programs like Quicken, a Smart phone app, or even just a ledger pad and pencil, tracking your finances can lead to personal fulfillment each month, when you still have money left until the next payday.
How do you save money? Post your comments below!
2 comments
04/01/2012 at 4:41 pm (UTC -6) Link to this comment
I like pay off your debts, especially with the gap between credit card interest rate charges and how much you are able to earn with short term money markets or deposits. I try to use all extra cash to pay down debt. My favorite savings tips has to do with driving less, whether taking the public transportation to work or ride sharing. Cutting down on mileage saves on gas, car repairs and also can chop your car insurance expenses at the same time.
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04/16/2012 at 4:21 pm (UTC -6) Link to this comment
Good points, Tom! Driving less usually means walking or walking at least a short ways to the bus stop – great for your health!