How to Save Money!
We all want to save money, whether it's for an item you are planning to buy, for a vacation in Hawaii, or you're saving for a rainy day fund. If you want to start saving money or have started, but it's getting difficult to continue, Here are ways to save money:
Creating a plan
It's essential to set up a goal, schedule and purpose. A goal means how much money you want to save, like $500. The schedule is how long you give yourself till you achieve your goal, like 2 months. For setting your purpose, it's very essential to know why you want to save money. This gives you the determination to actually do it. Whether it's for a new laptop or you want a vacation in Hawaii. Make sure your plan is realistic and attainable. People tend to be more successful when they set a short-term plan. The more you attain short-term savings, you create a habit that makes it easier to save for long-term and more significant goals.
Goal: $100 - Schedule: Every 2 Weeks for 1 Year - Purpose: Emergency Fund
Goal: $300 - Schedule: Every month - Purpose: Retirement
Ways to Achieve Your Plan
Record Your Expenses
Always keep track of how much you make and how much you spend each month. This will be easier if you have a bank account. Once you have your data, organize the numbers by categories and total each amount. With a bank account, you can set up an automatic saving account or use apps on your phone that help you keep track of all your expenses. Use the tools that are best suited for you.
Set Up A Budget
Once you know how much you spend each month, it's easier to create a budget. It's easier to plan your spending and to limit overspending. By doing this, you know how much you can save in a month or a year, depending on your plan. Make sure to separate your miscellaneous expenses from your necessary expenses. Necessary expenses are expenses you can't cut back on, like rent and phone bills. Miscellaneous expenses are buying food, coffee, etc. Make sure to set a budget for your miscellaneous expenses so you can save more money.
Cut Your Spending
If you need to cut back in spending, there are many ways to do so:
Use resources in your community like free groceries or grants that apply to you.
Cancel subscriptions or memberships you don't use.
Try to eat outside less and cook more. By packing your lunch to work/school, you save a lot of money. If you do eat outside, eat in places where the prices are low.
When you are tempted to buy a nonessential item, give yourself 1 or more days to cool down. Ask this question before you buy "Can I live without this?" Most of the time, that helps you from spending unnecessary expenses.