The idea of saving money can be an intimidating one for many, and too often, individuals get stuck in the thought of "Where and how do I begin?"
The truth is you are not alone. Today, for many individuals and families, paying for daily living costs well, having enough to put away for future savings can be a struggle. With the proper dedication and planning, you will soon see that saving money does not need to be as complicated or intimidating as previously thought.
Before we go through our 10 helpful hints, we need to say that these tips do not work unless you do. There is no easy route to riches, and only when you begin to change will you genuinely see changes. Additionally, there is never going to be a perfect time to start saving like now. People often say, "I'll start next paycheck" or "I'll start this weekend." The truth is that no matter how little or how much you have to start with, the only thing that matters is that you start.
Understand that these tips may not entirely fit your savings styles or goals, alter and tweak them to fit your financial situation and needs.
- Focus on your debt.
Do you know offhand how much your monthly payments are? If you don't, you should. The truth is, we often get into a routine of paying our debts each month without thinking of the bigger picture. Sure, that loan or car payment may only be $100 a month, but how much of that is actually going to the loan? Taking a closer look might surprise you. At times as much as half of your payments could be going to interest! See why it's taking so long to pay off that car? So, how should you go about dealing with this? There are multiple methods! The debt snowball method is one commonly used. This method is where you pay off the smallest debts to the largest. The idea is that you will get rid of the smaller payments quicker, clearing up more cash flow to save or put towards the more enormous debts.
- Cancel monthly subscriptions.
Although this seems like a relatively simple and straightforward idea, it can be surprising how often individuals skip this step. Do you know exactly what comes out of your account monthly? Chances are you don't. We usually sign up for services that charge us at regular intervals like Netflix, Disney +, Crave, Twitch, etc. Although these services may only be around the $6-15 range, they can quickly add up over time and with multiple ones.
- Eat at home or pack a lunch.
Buying that daily coffee or that weekly lunch may not seem like much at the time, but they add up quickly! Take a morning coffee, for example. If you buy a regular-sized coffee each day Monday to Friday at just $2 a day, you could be looking at saving over $40 extra a month! That $40 may seem like nothing now, but that's an additional $480 a year just for making your own coffee. Imagine what making your lunch could save you!
- Is it a need, or is it a want?
One of the easiest but most challenging ways to save money is really looking at our purchases. Do we really need that new $30 shirt? Or do we have wonderful ones at home? The truth is, we quickly start to confuse wants for needs. Sure it can be nice to have fancy new things, but you know what's even better? Seeing that bank account grow.
- Groceries.
We all need to eat, that's no question. However, do we really need that $30 steak or the $10 ice cream? The truth is, most households overspend on their groceries. To help combat this, come up with recipes and meals that you or your family like to eat regularly. What do you need for these recipes? Make a list planning out the meals for the week, and when you go shopping, you'll know exactly what you're going to need. Oh, and never go grocery shopping when hungry, but we all know that!
- Put money away automatically regularly.
One of the simplest ways to save money is by setting up an automatic savings plan. A good rule to follow is a minimum of 10% on each paycheck. If you are young enough to be living with parents or have roommates making it easier to save more than 10%, it is highly recommended. Although this 10% can seem like a large amount at first, the truth is when you begin to take this amount off before you are paid, you will not notice it. Think of this, if you had put away 10% of each paycheque last year, well only making $50,000 through the year, you would be sitting on $5,000 worth of savings at the end of the year. Not bad for just 10% each time.
- DIY with everything you can.
Need an oil change? Do it yourself. Need the grass cut? Do it yourself. What about that leaking pipe? You guessed it, fix it yourself! The truth is with the internet at our disposal, most people can find instructions or videos on how to do something (I mean, you are reading instructions right now, so). Although this can require a little elbow grease, the rewards of doing something yourself are not only the feelings of accomplishment but the extra cash you saved doing it!
- Not using it? Sell it!
When was the last time you used the old bike in the garage? What about that bin full of clothes? The truth is, most people have items in their home that they no longer are using that could be sold! Sure, selling some of the kid's old toys might not make you a millionaire, but if it frees up some space and makes you some cash, why not?
- Get a side hustle.
Whether it's doing some yard work, making art, tutoring, hauling junk, whatever it may be, find a way to make extra money. This can be challenging at first because most people second guess themselves. "How could I ever come up with a side hustle?" It's not nearly as hard as you think. Begin by thinking of your strengths and different interests. Youtube and google have numerous ideas and videos on how to get started. The rewarding feeling of being your own boss and making your own money is like no other.
- Invest.
The final saving tip we have is to invest. When looking at a traditional bank account and the amounts needed to qualify for higher rates, it can discourage the beginner trying to grow their savings. Some individuals choose to place their savings into mutual funds or other similar investments. This strategy is not for everyone, though, and requires an understanding of the investment you are looking at. Make sure to look into the returns from previous years and the rates and fees associated with them.
Although these tips may seem simple with the proper planning and execution, they bring excellent results. The power to stop living paycheck to paycheck is within you. However, it requires that you put your attention and focus towards improving upon this instead of ignoring it. No matter how much money you make, the truth is possible to be richer than you ever imagined. I hope that these tips helped you and if you're interested in learning more, please follow along with the blog for daily posts!