We all want to earn more than we spend. And not all of us want to cut off our expenditures. Every penny counts when it comes to saving money. Good skills and smart decisions can eliminate expenditures and help save more. And the earlier you decide to start saving, the sooner you will gain your financial goals and build your nest egg. Here are smart and simple tips to help you on your way.
#1. Start Right Now.
Good savers don’t procrastinate financial decisions in order to start early. If you quit smoking today it can bring $3,000 a year in savings. By all means, you should jump on an opportunity to save as soon as this option appears. Don’t forget to invest in your future by putting 10%-15% of your paycheck each month into a retirement account.
Look for possibilities to save significant sums. For instance, while searching for a job, if you have good writing skills and know how to list work experience on a resume why why spend an extra $1,000 on hiring a resume writing service? Pay attention to details: a thermos flask with warm coffee taken from home can save you nearly $20 a week or $1,000 a year that you used to spend on latte.
#2. Savings Goals Is a Must.
You should set a specific but realistic goal to motivate yourself. When you visualize what you are saving for, you are giving yourself time to save and try to move faster toward the goal. Calculate the targeted expenditures to save each month or year to reach your goals. Post your goal list in a place that is discreet, but that will allow you to see it often.
Put short and long goals down. For instance, “1) to pay off my credit card debt by the end of November”, “2) to save $6,000 in an individual retirement account this year”, and “3) to buy a new car in 2 years with a 10% down payment.”
#3.Learn the Difference between Wants and Needs.
Ads telling that travel around the world and five-star restaurants, new cool clothing and high-tech gadgets are real needs are the biggest lies we are sold today. Wants are never people’s actual needs and provoke to waste money on impulse purchases.
The first step to good money management is to take extra time to think about whether you really need this purchase. Waiting a month passed before you spend highly likely makes your urge to splurge to disappear. So, you can have your money saved just by waiting.
#4. Prioritize Saving.
Though it may sound simple, making saving a priority in our lives is the best recommendation for how to set up an emergency fund. When you put savings into a retirement account or other self-directed savings account prior to spending on anything else, you pay for your peace of mind first then.
If you’ve got a few loans, combine them into one, consolidating all your debts. Managing one debt is easier, paying down your loan using saved funds is faster. It grants the opportunity to have more free money that can get put into a long-term savings account.
#5. Create a Budget.
A written chart or a spreadsheet if regularly updated allows you to feel more in control of your finances and lets you save money for your goals. This is the best way to identify the amount of money you have coming in. Net income is your final take-home pay to begin with.
That means your monthly cash flow fixed in a budget worksheet should exclude the deductions for Social Security, taxes, 401(k) and flexible spending account allocations.
Include all your fixed expenses, such as regular monthly bills (rent or mortgage, utilities, or car payments.) Don’t forget about variable expenses, such as groceries, gas and entertainment.
#6. Make Saving Automatic & Easy.
In recent years, plenty of financial solutions and account types help people with short-term and long-term savings goals. For instance, round-up apps automatically save your spare change by rounding up its amount from your everyday purchases: after buying a cup of coffee that costs $5.25 the app transfers $0.75 into your savings account. Some of them analyze your spending patterns with AI and then automatically save money for you.
#7. And Never Give Up!
Everybody knows how painful saving money can be for sporters. Aside from willpower and focus, it takes sacrifice and adjustment of habits. But as soon as you get the hang of it, month by month it will unfold easier. In a little while you’ll understand how rewarding the process is.
There are plenty of money management blogs to follow and analyze. When you’re stuck with savings or save less than you’ve planned, don’t get discouraged. Take a deep breath, figure out where it’s not working for you and start again. Keep trying, and you’ll do fine.
About the Author
Gillian Grunewald
Gillian is a talented writer with a strong research approach in the career field. Has over 12 years of experience in resume, LinkedIn profile writing and editing. Education Master of Fine Arts, Writing Eastern Washington University.
