Simple Ways to Save Money
Saving money is definitely not the easiest thing in the world with so many distractions around tempting you to use your card or empty your wallet within a blink of the eye. There are so many wonderful, cool and much-needed things around you would like to buy and enjoy, but do you really need them in your life, or you can simply save the money and invest them in something bigger and better later on? It is all a matter of your financial situation and what you would like to spend your hard-earned money on, however, if you are looking for some easy-to-follow, very simple and really not that restricting ways to save some money and leave your card have a rest for a while, then you are in the right place, because today we are going to reveal some money-saving tips and secrets.
Usually the hardest thing about saving money is just getting started. So make your sure to gather all the power you possess and try to restrict yourself from buying things you don’t need, eating out all of your meals and spending way too much on going out and all that jazz. If a piggybank could help, make sure to purchase one and let this be your last non-important purchase before you put a ban on the shopping sprees and indulging yourself, at least for a while.
It could be difficult to figure out some simple ways to save your money and it is even more difficult to follow your restricting rules, but it is definitely not impossible. So if you really want to change your purchasing habits and boost your budget, we are sure that you will soon get used to the saving money mode. After all, keeping in mind that the money you manage to save will help you pursue your bigger and more important financial goals is definitely an idea to stimulate you and motivate you a lot. So if you are looking for a simple and realistic saving plan, here is our step-by-step guide.
Record your expenses
Most of the money-saving gurus will tell you that one of the most important and effective things you can do if you are going on this money saving journey is to start recording your expenses and track how and what you spend the majority of your profit on. Do not get lazy and try to keep track of all your expenses, even smaller and insignificant things like a cup of coffee or a newspaper. Everything is important, especially the smaller purchases because we often do not perceive them as a significant expense, but at the end and when all those small expenses are calculated together, it turns out that they cost you a significant amount of money you cannot neglect.
Once you have your data for a month, for example, make sure to divide all your expenses/results into groups and categories by starting with the most important and where you spend the majority of your money on, such as gas, food, mortgage, bills, entertainment, etc. Now you can have a clearer idea of where your money goes and which groups you can cut out completely, or at least consider decreasing the amount of money you are spending on some really not that important categories of expenses.
Make a budget
Once you understand your expenses better and you have a general idea of what you spend your money on, you can now start organising your recorded expenses into workable budgets. Start with outlining your budget to your outcome and then break it down into smaller budgets you plan to spend on each group of expenses. Consider cutting and limiting your budget for certain categories, plan your spending (and always keep in mind to allow yourself some extra financial space for unexpected situations that require money, such as buying medications, for example), limit overspending.
Plan how you are going to save money
Once you have a breakdown of your budget in categories, it is about time to start creating saving sub-categories within each major category. Ideally, you will be able to work things out with a 10 to 15% of your income as savings. Cut back all expenses that are not a necessity. It might sound hard and discourage at first, but believe us, one money-saving turns into your routine, it will be harder to spend money on things you understand that you don’t need.
Set your goals
If you find it really hard to find out which expenses are non-essential, or cut back expenses, you are probably not motivated enough to save money. The best motivator to put you in a saving mood is choosing something to save for. This could be everything, but make sure that it is something you really need and desire and something that you do not allow yourself on a daily basis. Perhaps you want to upgrade your IT technology or smartphone, buy a new car, invest in a business, go on that dreamy exotic holiday… it does not matter as long as it makes you reconsider all those not essential expenses.
Prioritise your goals
If you find yourself in a situation, where you have too many goals and dreams you would like to save money for, then make sure to prioritise your goals the same way you prioritise your expenses.
Pick the right saving tools
We know that we mentioned buying a piggybank at the beginning, but this sounds a bit too non-serious, outdated and risky, doesn’t it? Be an adult and save as an adult. Take your time and make your research thoroughly on different saving account options banks are offering. Make sure to choose the best saving plan that does not restrict you to a point, where you don’t feel comfortable, but also does not allow you too much freedom, so you can use your savings for something not important in a moment of temptation. Finally, check your savings grow every month and this will help you keep on track, motivate you to continue saving for your goals and help you stick to your plan.