Saving money is hard for a lot of people, including me. I struggle with saving money for the sake of saving. It helps me when I have a goal I am working towards and motivates me to actually start saving money. Actually doing these tips I am about to share will help you feel more financially stable in your life. They will also help you grow your savings account and feel freer in your day to day life.
go and Create an emergency account
I hate to say it, but your credit card shouldn’t be used in emergencies. That is a bad way to build up debt. Creating an emergency account is exactly what it says. It’s just for emergencies. Trying to even just save up $1,000 can get you out of most emergency situations (broken down car or not enough rent money). I know it is much easier to use a credit card and sometimes being able to save this extra money isn’t possible. Try to save whatever you can and put that money into your emergency account.
Create a budget that works well for you
I honestly didn’t get into budgeting until I moved out to Germany. I was never any good with money and honestly, I’m still not the best. But I am better than before I moved haha. Creating a budget is going to help you figure out where you are spending most of your money. That way you can see how much you can put into the saving/emergency accounts every month. When you are creating your budget remember to give yourself a little extra money to have some fun. If you create an extremely strict budget, you aren’t going to be happy at all.
stop using your credit cards
A lot of people I know say that using a credit card is an excellent way to build up your credit score. Unfortunately, most people don’t use them for building credit. Now, if you DO HAVE TO use a credit card, pay it off as fast as possible. You don’t want to get hit with massive interest fees and build up more debt if you don’t have to. I also know some people who use credit cards to get points or miles for flights. That works too but PAY IT OFF ASAP!
Figure out your financial goals
A few of my financial goals are to save enough money to buy a new laptop, house down payment, travel more and pay off our car. Those are some big expenses that are going to be coming up later in life. After you figure out your goals, you need to figure out your plan for saving that money. How much money do you need to put into your savings account per month? What things can you cut back on that will bring in more money? That’s where your budget will come into play and really help you figure those numbers out.
pay your bills on time
I know this is an easy one for most people but I wanted to put it on the list anyway. Paying your bills on time will help you avoid late fees which can add up if you pay NONE of your bills on time. A couple of ways to make sure you’re paying in time is to set up automatic billing with your bank. This is probably the easiest way to do it. You can also write down in your calendar when each bill is due when so that way you can have enough time to pay it before it becomes too late.
use cash, not cards
It is so easy to go out shopping and pay with your card. It is easier and more convenient than running to an ATM somewhere to get cash out. If you plan on going out shopping always bring a set cash amount and a list of things you need to buy. When I go clothes shopping I ALWAYS end up buying things I don’t really need. That’s easy to do when you have a card to swipe. But if you only bring $100 then you can only spend that amount. Doing this will help you stay within your budget and not overspend by buying too many extra things.
save. save. save.
Saving money is 100% the best financial habit anyone can have. Try to set up where once you get a paycheck, a certain amount is deposited in your savings account so that why you don’t always have to think about doing it. Saving money can help you be able to pay off debt, buy a car, buy your first house or anything else that will come up later in your life. Figure out what you can save per month by setting up your budget! Everyone should start saving money today because you never know when you will end up needing extra money. Plus, it’s nice to see the amount of money grow bigger and bigger each month.
Create a personal budget
Having a set amount of money for you to spend each month on yourself (not bills) will actually help you end up saving more money in the long run. I have a set amount of money I want to spend per week and its around 40 euros. Thinking about it, how can I spend that much per week? Well, that 160 euros per month are used for clothes, shoes, skin products, hair products, bus tickets, going out to eat and other miscellaneous things along the way. I usually end up using most of the money, especially if I need to get some more expensive things like next month. I need to get a haircut (50 euros) and new headphones (30 euros). That’s already 90 euros “gone” and it’s not even March. So having this set amount each month helps me plan out what are necessities that I am going to need to buy in the next month. Then I can plan my budget accordingly.
Pay more when you can
Say you have a credit card bill waiting and it’s $1,000. Your minimum payments are $50 per month. Then you can plan that $50 automatically into your monthly budget. Now, look where you can cut some extra expenses. You don’t need to buy a coffee every day, make it at home and bring it with you. That will save you an extra $15 a week that you can put towards your credit card bill. So add that on top of your $50 that way you can pay off your debt sooner and avoid interest fees, late fees, and so you just don’t have to worry about it anymore.
don’t buy name brands
I hate to break it to you but you actually don’t need to buy every clothing item or cleaning supply name brand. Those $25 Zara jeans are just as good as the $75 Levis ones. Name brands are more expensive because of the name. A lot fo the time, they use the same materials for both brands, just made in different factories. I have also noticed my off-brand paper towels clean up spills just as easily as the name brands. I also tend to buy biodegradable products and they work even better in my opinion.
Saving money is complicated a lot of the time but with these 10 tips, it doesn’t have to be. Saving money is rewarding in so many ways. Just knowing you have money in your savings for emergencies or to go and buy a new couch, you will feel so much more relaxed and at ease when it comes to those purchases.
I hope you enjoyed reading and let me know what you think down below in the comments! 🙂