How to Save Money | 7 Tips
Wanting to know how to save money? Here are 7 tips and tricks to save you money every 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!
1. Track your spending
This may sound obvious, but you will be surprised how many ‘small’ 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!
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 Starbucks 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 $7 on coffee every morning, that it will magicly solve all your problems and you will be financially free. However this is a great way to save 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. Not only will it save you money but it will also help to build the 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!
4. Shop at bulk and thrift stores
It’s no secret that buying groceries in bulk saves you money. Not only does this save you money every month, it also saves you more trips to the grocery store! While the normal bulk markets do have an associated member fee (CostCo, Sam’s Club), normally you save much more than what you spend!
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 the fast fashion world, while also practicing the act of reusing and recycling. An extra bonus here is that some thrift stores, like Plato’s Closet or Uptown Cheapskate, 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.
5. Reduce your utilities 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. For example, 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 in your home, take shorter showers (even if its only 5 minutes less), and use cold water – this is hard, but it is an easy way to save money, additionally it has an extra health bonus, as taking cold showers has many health benefits and is much better for you than hot showers. There are tons of ways to reduce your utilities bill to save you money every month.
Not only does being energy conscious help you save money, but it’s also 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 interest you pay but lower the principal 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 more money 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! Not only does it save us money but it is also much healthier for you to cook at home!
Conclusion
How we handle our money every month will determine how we can live our lives! Whether its about personal growth, safety, our loved ones, every penny shapes our story. These 7 ways on how to save is not just about increasing your savings account, but to also improve your overall financial and personal journey for the better!