Sometimes a hard thing about saving money is where to start. Saving money is actually easier than people realize but it seems like a daunting task with the way on how comfortable people can get with their spending.
- Track Your Money
Go through your average day and identify where you spend your money. By knowing where you spend your money you can determine what things you can cut back on and to put that money else where.
Grab your phone or a little notepad and every time you spend money, even if it is a $1 tip, track it. Write it down how much you spent, where you spent it, and what it was on.
- Cut Back On Expenses
After your budget time frame take a look at your lists and identify what you can cut back on. Identify non-essentials is an amazing way to cut back on your expenses and start saving money.
Below is a small list of common things that you can cut back on and an alternative to start saving money:
- Morning Coffee or soda
- Make coffee at home with a coffee maker or your soda with a Soda Stream.
- Cancel Subscriptions
- Cancel subscriptions you don’t tend to use on a regular basis
- Eat at home more
- Make a conscious effort to eat at home more or maybe even start a meal plan.
If you would like to learn how to meal plan on a budget take a couple of minutes to read over our article on budget meal planning.
- Eat At Home More
Opt to cook your own meals at home to save even more money. Statistically speaking the average meal when eating out is $13 but by contracts the same meal when prepared at home is, on average, $4. That is a $9 savings per meal.
Choosing to eat home cooked meals just 3 days out of the week will save you over $100 A MONTH, now just imagine if you chose to do that 5 days a week?
- Set A Savings Goal
Create a savings goal for yourself along with a reward to go with it if you manage to reach your goal. Start with a small goal and small reward, maybe $20/week with a reward of a movie rental. Small simple goal which can easily be achieved just by choosing to eat at home for 3 days of the week.
If you saved an extra $20/week for an entire year that comes out to an extra $960! That is a lot of extra money to have, especially around Christmas.
Don’t stop there though, if you are consistently hitting your weekly savings goals why not add an extra level above it for more savings?
- Control Your Impulse Spending
Really like those pairs of shoes or that new jacket? Why not wait for it to go on sale or even find a coupon for it. Control your impulse shopping when you are out and about, remind yourself that you are saving money and with the reminder of a savings goal this may be easier than you think.
While impulse buying is fun its actually a very expensive habit to get into, Americans, on average, spend $183 a month on impulse purchases. That’s $2196 A YEAR, couple that with the savings goal from tip #4 and you can have an extra $3000 a year.
- Calculate Purchases By Hours
Instead of looking at an item by its price look at it in hours…hours worked. What seems like a simple mental math tactic can lead to HUNDREDS in savings at the end of the year.
For example if you are considering a $200 jacket and you make $15/hour, simply ask yourself if that jacket is worth working over 13 hours to purchase.
That means for the next 13 hours that you will be working all that money is gone, no coffee, soda, snacks from the vending machine, nothing.
- Pay Off Credit Card Debt Each Month
Paying off your credit card debt each month is a lot more valuable than people realize. It helps you save money by not paying interest rates, getting hit with late fees and it helps build your credit score.
This also helps reduce the amount of bills that you have to pay which will reduce your stress in the long run.
- Coupons, Coupons, and More Coupons
Coupons can help give you a little boost every month in your savings goal, especially when out grocery shopping. A lot of grocery stores have little coupon booklets right when you walk in for anyone to grab and use.
Take advantage of them, there is nothing wrong with using a 10% OFF coupon or a BOGO. The only outcome is you get to save money.
- Shop on Wednesdays
Why is Wednesday so special? Well it’s because many grocery stores launch their new sales midweek, typically on Wednesdays. Not only do you get first access to the new sales some stores may even still honor the previous weeks sales.
Wednesdays are also typically not as busy in stores so there is an added bonus.
- Ask Friends and Family
Simply ask your friends and family for help. It doesn’t have to directly be financial help but even help with things around the house. Have a friend or family member who is good with plumbing? Ask if they can help with your sink and ask what they want in return or simply offer your services to them for free.
It’s easier to give up a couple of hours during your weekend than to pay someone $200. Plus this helps with keeping your social life active.