Saving Money Made Easy

Saving Money Made Easy

Do you struggle to save money? At the end of the month, do you ever wonder where your money goes? Perhaps you spend beyond your means?

If so, then this guide is for you! Learn how your financial habits and mindset play a significant role in your ability to save money. And speaking of habits, you’ll see how small positive changes, turned into habits, can automatically add up to big savings!

Consider these ideas: 

1. Track your spending. Record every penny you spend for a month. Divide your spending reports into categories, such as restaurants, groceries, entertainment, clothing, house payment, utilities, and other categories. You might be surprised to learn where all your money went!
   

●     At the end of a month, analyze your reports. Identify areas where you could cut down. Reduce those out-of-pocket spending the following month and transfer the funds to your savings.

2. Clarify wants versus needs. You need certain things in life to survive, such clothing, food, water, and shelter. Additionally, there are the items you desire. When you can distinguish between the two, you'll naturally end up making some financial-saving decisions.
   
   
3. Buy only what you can afford. You may think that you have to get every new gadget and gizmo available, but if you cannot afford it, the financial struggles they cause will outweigh the enjoyment that you receive from them.
   

●     Consider using the cash envelope method of planning for your spending. Divide your expenses into categories and use a different envelope for each category. With each paycheck, divide out your money into the various envelopes.

●     Spend only the money that you’ve planned for each category. Once the cash is gone, it’s gone until more money can be added to that envelope.

●     You may want to save for a few weeks to get enough cash in your envelope for a desired purchase, at which time, you’ll know that you can afford it.

4. Do you need that expensive car? If you're struggling each month to repay the high-interest loan that you had to take out to pay for your car, perhaps you’ll want to rethink whether you need such an expensive car.
   

●     An costly car may be necessary under some circumstances. For instance, if you work as a real estate agent and show clients around upscale homes for sale, having a pricey, luxurious vehicle could boost your sales.

●     On the other hand, in reflection, if you bought the car to impress the neighbors, you might feel that the additional expense and resulting financial struggles aren’t really worth it. If this is the case, you could be better off downsizing to a more appealing, less costly vehicle.

●     Think about the true purpose of a car: to transport you from one location to another, usually on quick trips around your city. Both an expensive car and a less costly one can get you there. Plus, you’ll have the extra money to do with as you please.

5. Consider downsizing. A smaller home can save tens of thousands of dollars on the purchase price and monthly payment, plus costs for maintenance and repairs are less. A smaller place will probably cost less, even if you rent.
   

●     Imagine the amount of money that you could save with a smaller house! You may then spend all of this money for other essential things in your life, like trips or adding to your retirement funds.

●     Downsizing is an important decision that only you can make. Decide what’s more important to you - the larger house or the savings. For example, you might need extra room because you frequently have guests. Having an office could be essential to your company's success.

●     Figure out if downsizing might work for you and, if so, go for it!

6. Look out ways to have fun and save money at the same time. It is not determined by money how much you enjoy life. Remember, it’s not the material things in your life that matter most, but rather your friends, family, and the cherished times you have with each other.
   

●     Research shows that the experiences in our life bring greater happiness than material items.

●     For example, instead of going out to dinner and a movie, invite your friends over for a potluck dinner and movie night at your house. You can still enjoy a rollicking good evening together while saving money. It's possible that you'll like it even more than dining out and watching movies!

●     There are many other ways to substitute something less expensive and still have fun, like game night, sports (playing volleyball, basketball, baseball, football, soccer, bowling), card games, going camping or to the beach, and more.

●     Create your own list of activities that are fun for you without costing a lot of money. Invite your friends to do the same and then choose those activities whenever you want to get together. You’ll all have fun and save money too!

7. Develop a few modest, prudent financial practices, such as:

●     Save first. Automatically have a small amount of each paycheck deposited into your savings. You won’t miss what you never see!

●     Let your money work for you. Invest regularly so that money will grow by itself into more money! Over the years, this can add up to many thousands, or tens of thousands, more than what you put in.

●     Cook at home most of the time. Saving money by cutting down on fast food and coffee runs will add up.

●     Buy when things are on sale. Aim to never have to pay the full amount.

●     Use free or streaming services for watching television. You can likely get the entertainment you want for a much smaller price and pocket some substantial savings.

Saving money doesn’t have to be a burden. If you follow these suggestions, you'll discover that you have more money for the things in life that you truly desire!