Saving money is essential if you want to have a better and more stable future. But – saving is also challenging, so you will want to turn saving into a little fun game you will love playing. You might want to start slow by putting aside $20 every week.
If you do the math, you already know that putting aside $20 weekly will give you more than a thousand dollars yearly.
You might as well want to step up your game by opting for the stairway approach where each step stands for a month, and every month; you will want to take a step up by adding $10 to your savings goal. With this game, all you need is a piggy bank to keep your savings safe. Learn more about the best savings account that can make savings easier for you.
If you find it hard to stick to your savings goals, you can add more people to the money-saving game. For instance, you could ask your best friend or a family member to hold you accountable. And you, in turn, could hold them accountable for their savings. You could run a monthly contest to see who can save more money.
Nonetheless, here are some simple tricks that can help you save money in a more effective way.
Move Extra Money to Your Savings Account
Before payday, you will want to zero out your balance and move it to your savings account. Suppose you have $1000 in your bank account and $200 in cash – before payday, you will want to move the amount to your savings account.
Believe us when we tell you this simple method has many advantages. For instance, before payday, you know how much money you have every morning. This knowledge is often enough to start controlling your spending habits.
Subsequently, you will also stop buying unnecessary things that might be keeping you poor. And most importantly, you will be sending a fixed amount every month to the savings account, which means you will be saving money.
You need to understand that saving money is all about spending nothing more than you need. Of course, you cannot hold on to every dollar – but – you will want to get wiser about your spending habits and reach your financial goals in the long run.
Give Yourself 30 Days before Buying
Another trick that will help you save money efficiently is by following the 30-day rule. This is especially useful for impulsive buyers. Whatever you want to buy, you will want to write it down on a piece of paper. Also, write the date next to the thing that you want to purchase.
Make yourself wait for at least 30 days before trying to make the purchase. You will be surprised to know that, more often than not, you won’t have the urge to buy the item anymore. If you wait some time, you are more likely to hit the sale season and get your desired item at a reduced price.
Set Aside a Fixed Amount Every Month from Your Income
If your financial goal is to become rich, you will want to start with saving money. Believe us when we tell you that the richest people in the world start with saving. With that said, you will want to pay yourself at least 20% of your income.
Don’t be like the majority of people who really work hard, but when they get their paycheck – they usually pay money to everyone else but have nothing left for themselves.
In other words, when most people get their paychecks, they pay for their utility bills and cable, pay for clothes they don’t really need, and even upgrade their phones. But – by the end of every month – they are left with nothing.
So – here is what you will want to do: pay yourself at least 20% of your monthly income before spending your hard-earned money on anything else. If you are confused about how you could do this, you might want to set up automatic deductions at your bank.
This way, you can ask your bank to deduct 20% of your income every month and transfer it to your savings account. Gradually, you will see that your savings account will accumulate more than you could have imagined.
Subsequently, you will have money on the side that will be all yours. You can then use the money to set up your side business, build your emergency funds, or invest the money in stocks.
Always Prepare a Grocery List
If you are a small family, you should ideally be spending less than $250 every week on groceries. But – you will be surprised to know that most people spend more than they need on groceries every week. Now, if you want to cut your grocery costs, you will want to go shopping with a list you have prepared beforehand.
Also, avoid going grocery shopping on an empty stomach, as you are more likely to buy unnecessary things. Going grocery shopping on a rumbling stomach is the worst thing that you can do to your wallet. It is better to eat something before you hit the grocery store.
If you go shopping without a list, you are more likely to end up making impulsive purchases. And those things will cost you money.
So, before you make the mistake of spending your hard-earned money on things that you don’t need, you will want to do the homework every week by checking your pantry and kitchen cabinets for what you need and carefully planning your shopping list.
More importantly, once you have made the shopping list, you will want to stick to it instead of getting carried away by the colorful display of items in the grocery store’s aisles.
Apart from the above-mentioned simple steps to save money, you will also want to consider earning more. If you think about it – earning more money is another simple way to send more money to your savings account and reach financial stability.