Saving Money can sometimes be the hardest thing to do, we have it and then poof, it’s gone. Here are 7 short and simple step by step tips to help you save money this year.
1. Record your Expenses
o First you need to figure out how much you spend. If you get paid on a monthly basis, work out how much you spend every month, including rent, bills, gas money, even down to a morning coffee. The more accurate you can be the more efficient you can be when saving.
2. Make a budget
o Once you know how much you spend, create a workable budget. Ensure to budget for expenses that don’t happen every month, such as friend’s birthdays or car maintenance. Also, give yourself a bit of breathing room and overestimate a few expenses, just so you can be prepared for the unexpected!
3. Plan on saving money
o Try and save about 10-15% of your income. If you can’t do this, it might be time to cut back and lower your spending on non-essentials such as eating out or those coffees I mentioned earlier! Or maybe you spend money on groceries you never eat?
4. Choose something to save for
o Having a goal means you’ll feel more motivated to save
5. Pick the right tools
o Sometimes it’s great to set up a specific savings account to help you with your saving plan, ones without a debit card, or even online banking. You can deposit money every month and then it will cost you if you want to touch it. Having restrictions such as these means you have no choice but to save money.
6. Make saving automatic
o Another step you can do is set up a direct deposit every month straight to your savings. This means when you get paid, your savings go directly there and it’s money you don’t see. Hopefully making it feel like you’re not even missing out on anything.
7. Watch your savings grow
o Now sit back and watch your savings grow!