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Life can get expensive in a hurry as the price of essential purchases and bills add up. With some extra money in the bank, you’ll have more to spend on fun purchases, vacations, or an emergency fund.
Some of the best ways to start saving money include listing your expenses, changing shopping patterns, opening a credit union account, and creating saving goals.
Read on to learn more about these must-know saving tips.
List Your Monthly Expenses
One of the ideal ways to save more is to understand where your money goes. Create a list in Excel or with a pen and paper. Jot down items such as:
- Utility bills
- Credit cards
- Rent or mortgage
As you list items, ensure you also jot down what you spend on unessential purchases, such as dining out.
Downloading a printable budget like one of these 21 free options will help you keep track of your money.
Additionally, avoid making impulse purchases when you shop; ask yourself if you need an item before purchasing it.
Not sure how much you should save each month? Here are 3 different budgeting guides to choose from:
Change Shopping Patterns
You can also save more money by changing your shopping patterns. Strive to use coupons, shop during sales, or buy specific items that are on sale when you go to the store.
Reducing frivolous purchases will also help in this area since it may be a shopping pattern you must correct.
Open a Credit Union Account
Many have bank accounts to store their money, but these don’t usually earn interest. Another major difference between banks and credit unions is that the latter have low-interest rates on loans which will help you continue saving if you make a big-ticket purchase.
Generally, credit unions serve specific regions of the country, so search for financial institutions in your area.
Make Your Savings Earn More with a High Yield Savings Account
One reason you may struggle to save money is that you spend too much money. The best way to help yourself not spend is to avoid temptation.
That means not driving by the Starbucks on your way to work, not visiting your favorite local boutique or not going online!
Help yourself start saving money by not spending it in the first place.
Related: How to Save Money From Your Salary
You can help yourself out a lot by reviewing and then cutting your expenses. Look for unnecessary charges or things you can do without.
Maybe you are paying for 3 streaming services and cable. Cut one of those out!
Or, maybe you are paying too much for your cell phone bill. Did you know you can cut your cell phone all the way down to only $20 a month with Consumer Cellular? And, they provide the same exact service as AT&T.
You can save a ton with a plan from them, and even get as much as $700 with an eligible trade in.
In any case, you can save more money by cutting out expenses. So look at every bill and everything you spend on and find places to eliminate or reduce costs.
Find ways to downsize your lifestyle in general if you are overspending. Reduce your monthly car payment by selling your car and buying something less expensive.
Move into a smaller place, or take on a renter. These may seem like dramatic choices to make, but they will really help you get ahead. Plus, you can decide to just do these things for a few months to get your savings account going.
One of the best tips to start saving is simply to start making more. The more you make, the more you can save.
So start a side hustle, take a second part time job, or sell all your unused stuff. In this day and age there are so many ways to earn, you can take your pick.
Here are a few ways to make extra money:
- Drive for Uber or Lyft
- Get a second, part time job
- Flip items you buy at garage sales
- Sell crafts and products online
- Do odd jobs for your neighbors
- Start freelancing in whatever your skillset is
- Create and sell an online course
Related: Best Websites for Freebies
Create Saving Goals
The final efficient way to start saving money is to create realistic goals you can follow.
Make a list of your monthly and annual savings goals to know how much money you want to keep aside. Make sure these goals remain realistic and achievable based on your lifestyle.
Note how much you spend each week to ensure you remain on track with your goals. Doing so allows you to make corrections as you go, so you can remain true to your established monthly budget.
Saving money is important for your financial health and your future. You need an emergency fund to be safe. And, if you can save enough, you can use your money to make more money.
Saving money requires discipline and careful planning, but with patience and diligence, you’ll have more cash for the future. Start saving today!
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