We all try to make as much money as we can. So, if you spend all of this money as soon as you make it, are you making enough?
You don’t need to start by saving half of your monthly paycheck. It’s better to stick to a plan saving small amounts and then building on that. With some discipline and perseverance, you will find yourself with more money at the end of every month.
Granted, the points we mention below are not going to create a fortune for you (unless you’re saving massive amounts). But, given time, managing finances will be something that will help in the future.
Here are 5 ways to start saving money today!
1. Automate your savings
One of the best ways of saving money is by automating the process. This takes away any deliberation you may feel when you’re putting away some money from your paycheck. When we have to think about it, we always plan for future spending which can prevent us from wanting to save the same amount every month.
Imagine you want to save $200 every month. If you were to do this manually, there may be times when you would want to spend that money on a night out or a new gadget. If you have the money in hand, it can be hard to stop yourself from spending it. But, if that option was removed from the equation, the $200 will be immediately credited to your savings account when your monthly paycheck comes in.
To help with this, there are multiple apps out there that can automate your savings. These are designed to help you create a savings habit by moving the money to your account on your behalf. One such app is called Digit. All you need to do is set up a savings goal. The app will automatically set aside a portion of your income every month to reach this goal within a prespecified period of time.
2. Set up automatic payments
We all have monthly expenses, be it utility bills, credit card payments, installments, or loan repayments. If you don’t make these payments on time every month, you are likely to be slapped with a late or overdue fee.
It may not seem significant at first as you will only be paying an extra $5 or $10. However, these amounts can quickly add up and accumulate. In the case of credit cards, you will have to pay much more than $10 depending on your situation. Setting up automatic payments for bills that are recurring monthly can help you save more money in the long run.
The simple part about this is that most banks offer this service with their accounts. You can set up automated payments to selected vendors as soon as your monthly paycheck comes in. This method though is only suitable for those who have a fixed salary. If you’re on a variable income, you could dig yourself into a hole without enough money to last you the whole month.
3. Prep when grocery shopping
Your monthly grocery shopping can be one of your biggest expenses for the month. Without a preplanned list, it is easy to go over budget by grabbing items you don’t really need and adding them to your cart. One way you can save a little money every month is by creating a list of groceries you will need and only shopping for those items. Avoid impulse buying and you will notice a gradual increase in your savings.
Another way of saving money while grocery shopping is to use an app that offers cashback rewards and monthly deals on groceries. Checkout 51 is a mobile app that can save you a few dollars each time you go shopping or pump gas for your car. You only need to take a photo of your receipt and you will be eligible to earn cashback. They also include many large name brands under their offers section so you will be paying less for the same products you purchase every month.
4. Cancel unused subscriptions and memberships
With all the business advertising surrounding us every day, it’s easy to sign up for a subscription or membership that we may not even end up using. You may even have signed up for a trial period but forgot to cancel it before the trial ends.
Unless you get the notification, you may not even be aware that you are being charged for subscriptions you aren’t using. This results in unnecessary spending that you could instead be saving or using for something more important. Your first step should be to analyze your previous bank statements, identify any monthly subscription payments you are making, and unsubscribe from them.
Once you do this, you can sign up for a fintech app designed to help you save more by analyzing your spending pattern and “trimming” down your spending. Trim is one app that can help you do this. It will automatically check for any subscriptions which you can then ask the app to cancel on your behalf.
5. Plan ahead with coupons and sales
Before you make any purchases for the month, you can search online to identify any coupons or discounts you can get from specific stores. With multiple purchases, you can save a large amount every month by using these discounts. Honey is a browser add-on that will help look for any coupon codes in the websites you are looking at. With one click, you can apply the coupon at checkout to save big! You can even earn additional gift cards by continuing to shop with Honey.
Take charge of your finances and spend less time worrying about making your monthly payments. Save up for emergencies and to invest in your future. Put some (or all) of these ideas into practice and watch your savings gradually grow into a fortune over time!