One of the hardest things about saving money can actually be getting started and making a plan to save. Whether it is for a rainy day, a wedding, home renovations, or a vacation, you need to have a financial goal in mind. When you have something to work towards it is going to make it much easier. So that needs to be your first step of saving money, having a goal to work towards.
From there, you can work out what you can put aside each month. Making a budget and checking on it regularly is really key to having success with your savings. So look through your bank account and paychecks, to figure out the exact amount of money that you have coming in each month. How much is your total income? Then look through to see how much your bills cost you; everything from your mortgage or rent, to your phone bill or gym membership.
Then you’re left with the leftover amount of money each month. That needs to be divided into the things that you need to buy, like your groceries, and then you’ll be left over with the amount that you could save. You might want to put it all away for a few months and not spend much extra, or only put a portion away if you have things to buy that month. Either way, it gets you on your way to saving.
If you have looked through your bank statements and it is looking like you could make cuts in some areas, then make a plan for those changes. Could you cancel your gym membership or get a new phone contract? Can you get rid of cable TV or start making use of coupons more for your groceries? Then you could also look for other ways to help you, such as getting one of the best low apr credit cards or one that offers discounts or rewards to help you achieve your savings goals, or will help you to manage your money better. When used wisely, it can help you, as long as you’ve budgeted well and keep a watch on your spending.
The right bank account can be a good way to give your savings a boost too. If you put money away separately, it can mean you’re less tempted to dip in and out of it, as well as getting a little extra. A good savings account can give you a pretty good rate over time, so it can be a little extra money, without having to do anything else for it. Winning.
With that in mind, it can be a good idea to send your savings automatically to another account, using an automatic transfer or direct debit. It can be a quick and easy way to move the money and takes any temptation to spend it away.
Have you got any tried and tested tricks and tips that help you to save money each month? It would be great to hear what you think.