Are you living paycheck to paycheck, struggling to make ends meet every month?
It might seem like a tall order, but there are tips for saving money that could help you.
But why is saving money important?
Having money saved in the bank can not only help your peace of mind, but it could also be a lifesaver in case of unforeseen expenses. Life doesn’t always wait for the right time to strike.
Additionally, getting out of debt, being able to afford bigger expenses such as a new car, improving your living conditions, and being financially independent are only some of the reasons why saving money is worth it.
This article will give you essential tips on how to save money every month for a rainy day. Read on!
Track Your Expenses
You’ll have an easier time saving money if you’re methodical about it. Figure out how much you typically spend every month, and most importantly, how you spend that money.
Record all your expenses, even minor ones like that daily cup of coffee. Organize the data by categories such as groceries, bills, gas, etc. and enter each amount.
There are free-spending trackers you can use to help you get started. Some apps will even automate some tasks to make it easier.
Budgeting is simple in principle, but many people forget to do it or simply prefer not to think about it.
For this, you have to know how much money your household is making, and how much you’re spending every month. Quite simply put, to save money, you have to have more money coming in than going out.
After keeping track of your expenses, you can start organizing your expenses into a practical budget. Cut down on non-essentials and prioritize what you can’t live without.
Save on Groceries
Grocery money can easily add up if you’re not watching carefully what you buy.
You may think getting those cookies and that pot of organic hummus isn’t much, but even small buys quickly add up to severely inflate your grocery bill and make you wonder where all that money went.
There are a host of tips to help you cut down on groceries. For starters, don’t go grocery shopping on an empty stomach and don’t take your kids with you to avoid being tempted into frivolous buys.
Plan your budget, make a grocery list beforehand and stick to it. Make sure to take advantage of any loyalty programs, and use coupon codes as much as you can.
The price of your shopping cart can also vary widely depending on where you shop, so watch out and compare prices, because it’ll make a huge difference over time.
Garnish Your Savings Account
Whenever you got a bit of spare money, you might be tempted to treat yourself. You deserve it for managing to save that money, right? It’s a real catch 22 that’ll never let you save any money.
With this tip, you won’t even have to think about it and you can make saving money a priority.
Set up your bank account to automatically transfer some money into your savings account every month. You can also set up your direct deposit to systematically transfer part of your paycheck into your savings account.
You might feel loyalty toward certain brands, and even think recognizable brands are better than generic products. This isn’t always the case, however.
A lot of the time, the difference in price between brand-name and generic items is due to the brand’s marketing spending. You’re paying more for that alluring packaging and those ads on TV, not necessarily for better quality ingredients.
And it works, since a lot of people are willing to pay more for these products.
Don’t be afraid to try generic brands, at least when it comes to medicine, cleaning supplies, paper products, and staple food items such as rice and beans. Your wallet will thank you.
Stop Eating Out
Going to the restaurant or getting takeout is nice when you don’t feel like cooking, but it’s very expensive.
Most people eat out to get a break from responsibilities and don’t look at the cost too closely.
But even if you only spend $20 once a week, and that’s a very conservative figure, it adds up to $80 a month, which can easily pay for your internet or phone bill.
If you usually eat out for lunch due to your work schedule, try taking Tupperwares of food with you or preparing sandwiches. What’s more, home-cooked meals can be healthier and just as delicious.
When you or your partner cooks in the evening, make a larger quantity that you can freeze. You can also take advantage of your off-day(s) to do meal preparations for the coming week. Freeze individual portions and use them whenever needed.
And if you feel like eating something exotic, preparing it yourself can be a fun challenge and turn into a playful activity with your partner.
Cable prices are on the rise, and the typical price for cable TV is over $100 a month.
With all the different ways to watch TV shows these days, you can easily find more economic options to keep in touch with your favorite programs. For instance, network apps and streaming services can be alternatives.
Cancel Your Useless Subscriptions
Nowadays, it’s easy to get swamped with multiple subscriptions, some of which we even forget about. Netflix, Spotify, Amazon Prime, and that gym membership that you never use quickly add up to hefty amounts every month.
Not to mention that some websites try to trick you into subscribing and paying them monthly without you realizing it. Watch out for subscriptions that have an automatic renewal feature as well.
It’s time to put all your subscriptions under scrutiny to see which ones you can’t go without and eliminate the rest.
Why Is Saving Money Important? It Makes Life Easier!
So, why is saving money important? It’ll save you a hell of a headache. Money problems can cause tensions in your personal life and make you feel anxious.
With these tips, you can start saving money today and make huge improvements in your life. It might require changing some habits, but if you plan well, your quality of life can stay just the same if not improve.
Check out our Money section for more essential tips on managing your money.