Saving doesn’t need to be complex or require major lifestyle changes; there are a number of small, strategic steps you can take towards reaching your financial goals. First and foremost, put yourself first when it comes to money matters by saving first before paying bills or debts. Other money-saving strategies include cutting dining out costs, buying used items, and opting out from marketing emails.
1. Pay Yourself First
Paying yourself first means making savings your top priority before paying bills or spending any of the money that comes in, such as building up an emergency fund or saving for retirement accounts or long-term goals. Just follow these straightforward steps and see the savings add up quickly! It may require hard work and discipline, but the reward can be wonderful. This simple strategy can save you a significant amount of money!
To see your spending over time, start tracking expenses with a budgeting app or free spreadsheet. Next, arrange automatic transfers from your checking account into a savings account each paycheck—this way you won’t miss any savings opportunities!
2. Save Your Change
Saving even small amounts can add up over time. Use a change jar or piggy bank to gather coins, or take advantage of round-up savings apps, which direct spare change from purchases directly into your savings account.
Another easy way to save is by opting for cash instead of credit cards. Doing this forces your brain to think twice before making impulse purchases and can also save you money by meal planning, purchasing generic items at discount stores, and packing lunch for work every day.
3. Keep a Shopping List
Making a shopping list can help you save money by eliminating impulse buys and monitoring progress toward savings goals. Use of a budgeting app can help you better understand where your money is going and identify any spending patterns, so that changes such as cancelling subscriptions or finding cheaper service plans may help reduce expenses.
Prioritize your needs and save for what you desire, but take the time to carefully consider any non-essential purchases before making them. Apply the “wait 24 hours” rule when considering non-essential purchases.
4. Don’t Shop Online
Paying yourself first means setting aside a portion of your earnings in a savings account before paying any bills or debts, one of the best strategies for saving money. Begin by keeping track of your spending with pen and paper—ideally using a pocket notebook—to categorize it according to needs versus wants; driving to work counts as a need, while paying monthly music subscription fees might not.
Paying with cash can also help, as it makes you more conscious of your spending and limits how easily credit card bills can be swiped through. Reduce unnecessary subscriptions such as magazines and gym memberships that you no longer require.
5. Make a Budget
Establishing and sticking to a budget makes saving easier by providing an idea of the amounts coming in and going out, helping create savings plans, avoid debt, and make informed financial decisions. Use a budgeting app to keep track of your spending. This will enable you to identify areas in which you could cut costs, such as dining in more often, cancelling unneeded subscriptions, and shopping for discounts/rewards/generic brands.
By paying with cash rather than credit cards, it can also help prevent overspending. Calculating purchases based on hours worked can provide an eye-opening way of seeing how you’re actually spending your money.
6. Shop with a Friend
Partnering up with friends or family to shop can save money. They can keep you from making impulse buys and provide another viewpoint when searching for deals. An easy way to save money is to cancel unneeded services or items, like paying for newspapers you never read and gym memberships you rarely utilize. Consider canceling any unnecessary ones, such as these, to save some cash.
Coupons can be an effortless and affordable way to save money. From clipping them from newspapers to downloading an app, coupons are an efficient way of cutting expenses on essentials like toilet paper and laundry detergent.
7. Use Coupons
Coupons offer great opportunities to secure great savings on things you know you will use—for instance, buying bulk packages of toilet paper when they go on sale can save money and protect against future price rises. Find savings online and in newspaper coupon books in various places, including cereal and bread purchases as well as batteries for the home.
Other ways of saving include setting a programmable thermostat to cut utility costs, taking advantage of end-of-season sales, and purchasing generic brand groceries and cleaning products.
8. Buy in Season
No matter if your goal is a debt-free vacation or a new car purchase, intentional spending cuts must be implemented. Setting savings goals, automating deposits, and making lifestyle changes such as buying generic, packing lunches, or using an expense tracking app can all help manage monthly spending more easily.
To prevent overspending, try shopping in-season and taking advantage of store loyalty programs. Also consider calculating purchases according to hours worked; this can help determine whether an impulse buy really makes financial sense! Lastly, reduce energy costs by turning off lights and unplugging electronic equipment when not needed.
9. Don’t Overspend
With convenient one-click shopping and two-day delivery services, it can be hard to keep spending under control. This is particularly true for emotional shoppers drawn in by new technology or trendiness, discount shoppers who purchase items just because they’re discounted, or convenience cravers who spend without much thought.
To avoid overspending, creating a budget that separates expenses according to needs and wants can help. You can do this by reviewing bank statements or by using an app to import them. Furthermore, using cash makes tracking spending much simpler.