When it comes to our financial concerns, we can all agree that getting through the day, the week, and the month comes first. However, whether it’s to make sure you have savings for a rainy day, to plan for a dream holiday, or even for bigger purchases like a home or a car, making sure that you have enough money to keep some to yourself at the end can be important. But how do you do that?
Picture – CC0 License
Pay yourself first
The first rule is to set up a budget, calculating how much you spend and how much you can save with every paycheck. The second rule, however, just as important as the first, is to pay yourself first. This means taking the money that you’re trying to save and putting it aside so that you can’t spend it before you spend a dime. If you have to dig into your savings for an unexpected expense, that can be tolerated. You just want to make sure you don’t do it accidentally.
Never buy full price
Finding savings in groceries where you can is always a good idea, but it’s the expenses outside of groceries that can take a bigger bite out of the money you have left over. To that end, using savings tracking site when you’re shopping for things online, be it clothes, appliances, or otherwise, can make sure that you rarely, if ever, pay full price for the things that you buy. Coupons, codes, sales, and deals are always on, you just need to know how to find them.
Let your money grow
If you’re saving up for something in the long-term, be it a year or more in the future, then the money that you’re saving shouldn’t just sit in a bank account. The right mix of savings accounts and investments such as commodities trading can help you better grow your funds, beyond interest rates and inflation. Of course, diversifying what money you invest is important to limit the risk to your savings, as well. If you simply let your money sit in an account for years, you’re not going to get much growth out of it.
Find your unnecessary expenses
You can set a budget, no problem, but how well can you stick to it? It’s not always easy, especially if you have some spending habits that you’re not fully aware of. To that end, you should equip yourself with an expense tracker and manually make note of any time you spend money or any time money comes out of your bank (by checking your account every day.) That way, whether it’s spending too much at the cafe or letting too many unused subscriptions run, you can find the expenses that you can cut down.
If you want to make sure that you’re able to put some savings away for your future plans, then you need to be active in finding the possibilities. Hunt out the deals you want, know where to put your money, and ensure that you’re setting it aside so that you can’t spend it.