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If you have struggled to save money and are tired of not having any money left over after paying all your bills, I’m going to help you.
There was a time when it was difficult for me to save money. I mean REALLY DIFFICULT. I didn’t have any extra money and to make things worse I didn’t know where my money was going. It wasn’t until I started budgeting and learning more about money that I became better at saving.
In this quick and easy to follow guide, I will give you ten tips to save money. These are very simple and effective ways to start growing your savings today!
Tell Your Money Where to Go with a Budget
The first step to saving money is to figure out where your money is going. You need to create a budget that includes your income and expenses. This will determine how much money you have left over, if any. A budget will help you to see how much you can save.
The great thing about a budget is that you get a glimpse of where your money is going. This means that you can change your budget as needed.
Ramp up Those Savings with a No Spend Challenge
A no spend challenge is just what it means, no spending. I love no spend challenges because it helps me to keep my impulse spending in check. No spend challenges can be completed in different ways. You can choose to not spend any money on anything besides your bills. Another method is to not spend any money on groceries and use only the food in your home. A common no spend challenge is to not spend money on eating out or extra activities. It’s your money, so you make the rules of your no spend challenge!
How do you save money during a no spend challenge? You simply put aside the money that you would have spent. The money saved during the no spend challenge can be put into savings.
The challenge can be completed over the span of a day, week, month, or a year. If your have never completed a no spend challenge, then I would suggest starting with a day and then increasing the challenge from there.
Save over $1,000 by Making Coffee at Home
I am a coffee lover and have spent hundreds of dollars each year on coffee runs. I like the fancy coffee drinks that run over $6 a cup. This adds up to $30 per week if I go five days a week. That’s $1,560 a year ($30 a week x 52 weeks) If you have a similar coffee spending pattern as me, then it may be time to skip the expensive coffee.
When I realized how much money I was spending on coffee, I WAS SICK. I didn’t want to give up coffee, but I was tired of it draining my bank account. I invested in a coffee machine, and I LOVE IT. I make espressos, lattes, and iced coffees with my machine.
I’m not encouraging you to deprive yourself. You can treat yourself and save money. I treat myself occasionally to a drink from my favorite coffee shop, but my savings are adding up due to skipping the daily coffee trips. If your goal is to save more money, then this tip could save you over a $1,000 a year!
Rack Up the Savings by Taking Your Lunch to Work
If you buy your lunch daily, then it may be time to consider packing your own lunch. This can save you hundreds of dollars a year. It will take some effort, but the savings will rack up!
You can choose to take your lunch a couple of times a week or go all in and stop buying lunch. It’s your choice. I know that it can be hard to say no when coworkers ask if you want to go out to lunch, but you will be amazed at how much money you can save.
To make it fun, put money in an envelope each time that you bring your lunch to work. This can be any amount that you want. Think of it as paying yourself for bringing a lunch. Now you will have even more money to add to your savings!
Avoid Impulse Purchases and Use Cash
If you often make impulse purchases, then this tip is for you. I have always had an issue with overspending and making impulse purchases. One method that helps me to stay within my budget is to use cash for my purchases.
I use the cash envelope system. I divide my cash into categories (food, gas, fun, giving, toiletries, etc.) each week. The cash in the envelopes are used to pay for my purchases throughout the week. It helps to see how much cash I have in each envelope daily and to know that it has to last the entire week. I usually have money leftover at the end of each week that I put into savings.
Invest in a Piggy Bank and Save Your Change
If you use cash to pay for your purchases, then you may have change left. When I began to use the cash envelope system, I did not like having change left over. I had to figure out a way to keep it in one place.
I bought a coin bank that counts the change as I put it in. This motivates me to keep any change that I am given and change that I find. It really adds up. I have been able to save $200 in change within six months!
If you have change in your wallet or find change, save it! Invest in a piggy bank or coin bank. See how much money you can save over a year!
Make Saving Fun and Complete a Savings Challenge
Savings challenges are a fun and easy way to save money quickly. There are a variety of savings challenges and it all depends on your preference. There are color and save challenges, scratch and save challenges, envelope saving challenges, monthly savings challenges, yearly savings challenges, and so much more!
I like low income savings challenges because they are a quick way to save $50 to $100. I repeat those often and it adds up! If you have never completed a savings challenge, then now is the perfect time!
Save Hundreds of Dollars Yearly with a Call or Click
You may have subscriptions and memberships that you forgot about. It’s time to do a little investigative work and find those unused subscriptions. They could be costing your over a hundred dollars a year, which is money that can be going into your savings.
Take a look at your bank statement or credit card statement. See if there are any memberships or subscriptions that you are not using. Call them or go on their website. Cancel the subscription with a call or click. It’s that easy!
Become a P.I. of Your Budget and Track Your Spending
If you have never tracked your spending, then now is the time to start. This will help you to see what you are spending your money on and whether you need to adjust your budget.
I thought that I didn’t spend a lot of money on groceries until I started tracking my spending. It showed that I was spending an insane amount of money on food. The food was going to waste because I wasn’t finishing it! This helped me to be aware of my food purchases and to start meal planning.
Track your spending for a week. Look at what you are spending your money on. If you are not satisfied with your spending, then it’s time to make some changes. Cut out unnecessary expenses and put that extra money into your savings!
Stop Impulse Spending by Planning Ahead for Purchases.
Saving money does not mean that you cannot buy anything. Instead of buying things on a whim, plan ahead for those purchases. Save up the money over time and pay cash instead.
You can use sinking funds to save for future purchases. If you want to go on a vacation, buy furniture, or buy a new phone, create a sinking fund for it. Choose the goal amount for the item, which is the cost of the item. Determine when you want to buy the item and save each paycheck until you have reached the goal amount. This will help you avoid high interest rates and control impulse spending.
Conclusion
I hope today’s post showed you how to save money and most of all transform your finances! If you start using these tips to save money today, not only will you see your savings grow, but you will also make better money decisions.
Now I want to turn it over to you:
Which of these 10 Tips to saving money from today’s post are you going to try first?
Are you going to skip the coffee?
Or maybe you want to start using cash for your purchases.
Whatever you choose, let me know by leaving a comment below right now.
