Everyone from the less well-off to the very wealthy could stand to learn to save better. Many people rarely, if ever, save any of their personal finances in ways that are sustainable.
If you’re looking for a few easy tips to help you save money every month, this article is for you. Today, we’ve got some of our top tips for saving money that anyone can use.
Your first step is going to be recording how you spend your money in the first place. If you don’t have a good grasp on where it goes, it’ll be impossible for you to slow down and save. This will be quite easy if you bank online or can track your credit card statement. Once you have this data, we can begin to craft a plan to save.
After you’ve got your data, you can begin to create your budget. Make sure you take your income into account: money going out shouldn’t exceed money coming in. Make sure you’ve got some wiggle room in there for common but unpredictable expenses. That’s things like car repair and maintenance on household appliances.
Once you’ve got your budget and you can see where your money is going, find what you can cut from your expenses. Do you often spend more money than you should on eating out? If so, consider making food at home. Do you spend a ton on coffee? If so, consider making your coffee at home, too.
You’ll want to save around 15% of your income if you can, so make sure you cut your expenses to about that point. If you find that you can’t due to your non-negotiable expenses, such as rent, gas and food, just save whatever you can after those expenses are met.
The best thing you can do to keep up with your saving is to have a goal in mind. A few examples short-term savings goals would be to save for emergencies. Having somewhere between 3 and 9 months of your pay saved up is a great place to be. That way, if you get hurt or something breaks unexpectedly, you have a bit of a safety net. After you’ve got those emergency funds set back, you can begin saving for more fun things, like a vacation or a down payment on a new car.
As far as long-term savings goals go, those are a bit more daunting but just as important. If you’re looking to move or remodel, having a down payment for that will make your life much easier and save you from getting further into debt. Saving for retirement is very important, as you don’t want to work until you drop.
If you have children, saving for their college education is another good plan. College expenses have spiraled upward year over year, so having money saved could save your child from years of debt.