How to Save Money | 7 Tips
No matter who you are, everyone is always looking to know how to save money! Here are 7 easy tips and tricks to save you money every single month!
While it can be difficult, learning how to save money is important! It sounds intimidating at first, but there are tons of different ways to increase your savings account every month! This includes big and small things, like adjusting your daily habits and staying disciplined. However, the reward is far worth it! Here are 7 different tips on how to save money every month!
1. Track your spending
This may sound obvious, but you will be surprised how many of those small $5 purchases here and there add up! It’s so easy to just buy something if it is cheap, but many don’t realize how often they actually make these purchases until they see their credit card statement! Seriously, you would be shocked to see that you make probably around 5 of these purchases a day. That’s ~$25 a days, which in turn adds up to $175 a week, $700 a month, and $8,400 a year!! So, while a single purchase of $5 doesn’t sound like a lot, $700 a month does – that could be your car payment!
By tracking what you spend, it will make you much more conscious before swiping your card for the next purchase. This is also a great way to see what you are spending a lot of your money on. Once you do this, you can determine how to save money by identifying what spending habits you can cut back on. Not only this, but it is also a great first step into figuring out a budget that works for you!
2. Make a budget, and stick to it!
Making a budget is a great way to save money. A budget not only forces you to sit down and take a real look at your finances and what you are spending your money on, but also teaches you discipline and control when it comes to your spending habits! You can utilize a budget to ‘pay yourself first’, meaning you put a certain amount of money into your savings account as one of the first things you do when you get your paycheck, before paying your bills. This ensures you have some savings each month.
3. Skip the morning coffee runs
I know, I know, you’ve heard it a million times. ‘Just cut out the morning coffee!’. Listen, I am in no way saying that if you don’t spend the $6 on coffee every morning, that it will magically solve all your financial problems and you will be debt free. However this is a great way to start saving money, even if it is just a little bit! Not only will it put some extra cash in your pocket, but it’s an easy and small first step to take. It will save you money but more importantly it will help to build the mindset and discipline needed on the journey of bettering your finances!
Remember, you do not have to completely cut out the coffee!! Just make it at home – it’s much cheaper, saves you time, and you can make it exactly how you like! You can even start small, instead of going five times a week, cut it down to four times. Then the next month, cut it down to three times and so on. Little changes will make a big difference over time. Also, once you start seeing some extra money in your pocket every month, you will want to continue cutting down expenses! It will motivate you to figure out how else you can save money, it almost turns into a fun little game you get to play with yourself!
4. Shop at bulk and thrift stores
Buying groceries in bulk saves you money, this is no hidden secret. Not only does this save you money every month, it also saves you more trips to the grocery store (als0 saving you money on gas)! While the normal bulk markets do have an associated member fee, such as CostCo or Sam’s Club, normally you save much more than what you spend. This is especially true if you have a big family and go through a lot of groceries every single week.
Shopping at thrift stores is also a great way to save money on clothing! You can get name brand clothes for all seasons for a fraction of the price! Not only does this save you money, but it is also great for the environment. It prevents you from contributing to fast fashion, while also practicing the act of reusing and recycling. An extra bonus here is that some thrift stores, such as Plato’s Closet, will even pay you for your old clothes! You can get cash back or store credit, an easy way to get some extra cash in your pocket. A side note here as well. Another nice tip to save some money on clothing is to shop for your clothes in the off season. If it’s summer time, shop for your fall and winter clothing, this is usually on sale or even clearance! If its winter, shop for your spring and summer clothes. This little tip has personally saved me lots of money every year!
5. Reduce your utility bill
Being conscious of how much energy you consume in a given week can make a big difference in your utilities bill. This only requires small changes that can be made. Some examples: turn off the lights as you exit a room instead of leaving them on, wait an extra week or two to turn the heat or air on in your home, take shorter showers. You could also take cold showers- this is hard, I know, but not only is it an effective way to save money but its also really good for you!! Taking cold showers has many health benefits and is much better for you than hot showers. So, not only can you improve your health by reducing your utilities bill but it will save you money every month to!
Being energy conscious helps you save money, can improve your health, and it’s better for the planet!
6. Pay off High Interest Debt
Paying off your high interest debt will save you tons of money each month. Debt payments can be a huge financial burden to you each and every month. If you are able to pay off your debt using the avalanche or snowball methods or make a small extra payment each month, you will not only eliminate the amount of overall interest you pay but lower your principle balance as well! Once you are able to do this, you can use this extra money each month to then pay off other debts you have or put it in a high yield savings account to save (and make) even more money every month.
This is a great opportunity to mention how important it is to sit down and figure out all the debt you have. As I mentioned above, paying off your highest interest debt will save you the most money in the long run. This is usually credit card debt, as credit cards tend to have some of the highest interest rates. While debt, especially high interest debt, is scary, the worst thing you can do is run away from it. It will not go away like that, you have to face it and pay it off. Even if its only a couple extra dollars towards it every month!
7. Cook at Home
While we can all agree, going out to eat is much easier than cooking at home, it’s not very nice to our wallet. There are so many easy, quick, and cheap recipes out there that you can make! Learning to cook is a great skill to have. It is better for your health and it helps you to save money every month. Cooking is also a great activity to be able to do with your spouse or kids as well! Personally, I love to cook and I have really furthered my skills this past year. It has become a fun hobby of mine and my wallet (and my waistline) are thanking me for it!
Conclusion
How we handle our money every month will determine how we can live our lives! There are tons of different ways to save money every month, you need to figure out a plan that works best for you. The important thing is to figure out and always remember your ‘why’. Whether its about personal growth, financial security, or being able to take care of our loved ones, every penny shapes our story. While money is not everything in life, it does play a huge part on how your life turns out and how you get to live it. These 7 tips on how to save money is not just about increasing your savings account, but to also improve your overall financial and personal journey for the better!