If you are looking for ideas to save money, there is no need to look no further. We’ve got saving tips that will be some motivation to save money for you so you can reach your goals faster.
The Importance of Saving Money
Why should you save money? Well, the number one reason that Americans are stressed is due to money, according to a survey by Northwestern Mutual. The importance of saving money is centered around how it provides us with a safety net if we were to lose our jobs, have a medical emergency, or another unexpected situation. Motivation to save money could also come from:
Being able to pursue a dream job. If you’re stuck in a job because you don’t have financial freedom, how great would it be to a pile of cash reserves? That could provide the ability to do something you enjoy.
Save to have fun. It’s ok to put away a little money that won’t leave you feeling guilty about enjoying a vacation or buying a new motorcycle.
Leave a legacy. Wouldn’t it be great to have no debt and leave your family with a financial cushion? Honor them by leaving a legacy of wisdom and financial fortitude.
Determine Your Saving Plan
Before learning how to save money, you should have a goal in mind. A saving plan is an investment that you regularly contribute to reaching a short-term or long-term goal. Here are a few ideas:
Create an emergency fund
Establish savings buckets for different goals like a vacation, retirement, etc.
Save all or a portion of a type of income, i.e., commission, bonus, tax refund.
10 Ways to Save Money
Now that you have set your goals, it's time to save money. Use all or some of these 10 ways to save money:
The First Saving Tips: Cancel Subscriptions and Memberships
Review all your memberships (the gym) and subscription services (Netflix, boxes) and get rid of the ones you don’t use or get a lot of value from. You won’t miss them.
Pay Off All Debt
Our debt keeps us from being able to save as much money as we want to. You won’t be able to save money if you are in debt. Pay them off and become debt-free. The snowball and avalanche debt methods are two popular ways to accomplish this.
Create a Grocery list
One of the best ways to save money is to create a grocery list when doing your shopping. It's easier to stay on track and in the aisles that you need to be in. Finding out when the store has a discount also can be the best saving tips to try!
Auto-Save Every Month
Learn how to save money by automating it. Have a portion of your paycheck automatically move a portion to a separate account. You’ll never see the money in your main account, so you aren’t inclined to spend it.
Start Tracking Your Spending
Another great savings tip is to track your spending for a month. Writing down or tracking your spending on an app will make you more conscious of your purchases. You’ll also be able to review it and find the problem areas.
Go Cash Only
Studies have proven that people tend to spend less when they use cash. It’s one of those cost-saving ideas that work because of the psychology of having to see and feel that money being spent visually.
Have No-Spend Days
Do you want some extreme ideas to save money? Assign a day of the week that you aren’t allowed to buy anything at all. This idea can help change your habits and mindsets over time too. Add more no-spend days or go up to a month without making purchases to challenge yourself.
Establish a One-In/One-Out Rule
Do you want a new pair of shoes? Then you need to get rid of an old pair. This rule could work for a lot of the items that we use every day. As a bonus, it will keep the clutter down in your home.
Plan Free Activities
Do fewer activities that encourage you to spend more money like going to the mall or the movies. There are plenty of cost-saving ideas on alternative activities that are just as fun. Talk a walk to the park with a friend, attend a free concert, head to a free museum, etc.
Use Coupons and Discount Codes
There are certain things that you are going to have to buy. The price of almost everything is negotiable when you have a discount code or coupon handy: review coupon mailers, grocery, and use technology like Honey to help automatically find codes.
Those are 10 ways to save money that you can try. However, remember not to cut off your habits extremely!
About the Author
Anjana Paul is a banking professional who is passionate about helping others make better choices when it comes to money. In her spare time she is a freelance writer with years of expertise in the financial industry. She primarily writes about topics such as student loans, building credit, budgeting, retirement and other personal finance topics.