Tips For Saving Money

There are many benefits to having a hefty savings account, but we all know it can be hard to get there. In today’s consumerist society, the temptation to overspend lurks around every corner. New smartphones, fast fashion clothing stores that put out new items every week, expensive lattés and Postmates delivered dinners all seem to be more important in the moment, than throwing that hard-earned money into a savings account. Essentially, our wants disguise themselves as needs and the urge to buy buy buy takes over.

The journey to saving money may seem overwhelming but with just a few habitual adjustments, you’ll be there in no time. Check out these tips & tricks to grow that savings account and move towards days of greater financial freedom…

1. Make a Budget

It’s difficult to arrive at your destination, if you don’t know where you’re going. A budget is basically a map for your money saving journey. Get your spreadsheet on and create your own personal budget, based on each of the expenses that you HAVE to pay every month (think rent, bills and essential groceries). Include the income that you have coming in and compare your monthly income with your expenses. Do a little math and this will leave you with the amount of “extra” money that you earn every month, or your surplus. At first, it may be very little, but as you continue on your money saving journey, this number should grow.

2. Pay Down Debt

Debt is often a huge roadblock when it comes to saving money. Many people have to choose between the two, until debt is under control or paid off all together. A popular strategy for paying off debt is the snowball method, where you pay off your debts in order from largest to smallest.

3. Cook More Food at Home

Ordering meals for delivery/pick-up and dining out at restaurants should be a special occasion for someone who is trying to save money. The additional fees for a single meal (tip, tax, service fees, delivery fees, increased price on foods) will start to add up and dig into your budget. Strategically planning out your week’s worth of food and sticking to a grocery list will ultimately save you money. This may require you to do some meal prepping at the beginning of the week but your bank account will thank you.

4. Borrowing Over Buying

Need a fancy dress for ONE occasion? Need a power tool for ONE project? Need anything that would be a one time or temporary use in your life? Consider putting a post up on social media or calling around to friends, to see if you can borrow the item you need, instead of buying it brand new.

5. Thrift Shopping

Many of us know that if you buy a brand new car, the value depreciates as you drive it off the lot. That doesn’t make it any less useful though, right? This concept is true for most things. Consider thrift shopping and second hand when you need new clothes, furniture or many other things. It feels good to give something a second life, it’s more sustainable for the planet and it’s more friendly for your bank account.

6. DIY

Need something fixed around the house? Did you rip an item of clothing and need it sewed? Need your oil changed? Learning some basic skills to do things yourself, will save you money on using an outside hire. Sure, a handyman may be necessary for larger projects, but most people would be surprised what they can accomplish on their own, if only they took the time to learn and apply themselves.

7. Delegate A Monthly Max for Non-Essential Purchases

Having a set amount for non-essential purchases should help you to stay on budget for the rest of the month. Similar to those who have strict diets, with one cheat day per week. Looking forward to your non-essential purchases will keep you on track and help you cut down or eliminate impulse purchases. This is a strategy to help separate and control the wants verses needs.

8. Use Surplus Money Wisely

Many people who receive bonuses from work, tax return money or other types of surplus funds will often spend this money on non-essential purchases. They will get excited and plan an expensive vacation or go on a shopping spree. This money could be better spent by paying off debts or putting this money into savings. Even if you only save a portion of this money, it would be more advantageous than not saving any of it.

9. Save Money Automatically

A good method for saving money, that requires very little effort, is to set up your bank account for an automatic transfer of funds to your savings account each month. It can be just a small amount, even $25. Similarly, you can set up your direct deposit to send 10% of your paycheck to savings.

10. Cut Down Your Monthly Payments

When is the last time you checked how many subscriptions you’re paying for each month? How expensive is your cable bill and can you cancel cable all together and replace it with streaming services? Can you cut down the data on your cell phone bill? Would it be cheaper if you switched insurance providers? Sit down and analyze your monthly payments and look for ways that you can cut them down. It may seem tedious, but you are likely to shave off some money that can be moved to savings.

        The ultimate strategy for developing money saving habits is to control your impulse purchasing and become a minimalist. Have a plan (budget) and follow the steps to achieve your savings goals. Once you start to see results, it will feel rewarding and encourage you to continue onwards. You may start to find even more ways to save money, along the way!!