I hear you asking yourself the question, “How am I supposed to save money if I hardly make enough as is?”
I get it. I really get it. Without a good foundation to begin with, it’s hard to even imagine yourself in a comfortable financial situation. It’s even harder imagining yourself being able to do the things you want to do with the money you don’t (yet) have!
Luckily for you, many people have traveled this road before you got here- including my family. Here’s how we have learned in only 6 months how to save money AND live with a better quality of life
1. Create a budget.
Here is a previous article I wrote about budgeting for beginners. I suggest you take a look at that for a step-by-step process of creating a simple budget. Knowing the basics of spending is important for understanding how to save!
2. Cut the subscriptions.
This is easier said than done. We get used to living the lifestyle we have been leading- but that’s the same problem that got us into our current situation to begin with! According to a study performed by West Monroe Partners (a management and technology consulting firm), 84% of Americans underestimate how much they spend on subscriptions each month. Recent data shows that the national average spending on subscriptions is $273! That’s a good chunk of change that can easily be pared down!
3. Rethink your grocery list.
Well, first of all, just making a grocery list can keep you on track to spending less since you’re not just picking things up randomly as you see them. Once you’re past that, consider what you’re buying and where you’re buying it from. Is it possible (and maybe even likely) that some of your smaller local grocery stores are going to cost less than larger grocery stores for the exact same items.
4. Set a limit for eating out.
This is easier than just saying “don’t eat out as often.” If you actually set a hard limit for yourself, you’re much more likely to adhere to it. For example, I allow myself to eat out once a week from a cheap place and once a month from a restaurant. Easy math, quick savings!
5. Quality, not quantity.
Saving money is all about being creative and frugal with things. Buying reusable items saves you money in the long run, and it often feels better to use something nice than something that’s basically trash as soon as you use it. For example, a box of 100 plastic straws on amazon will run you about $8. Over the course of a year, that’s about $32 dollars if you use one straw for one drink every day. On the other hand, a single reusable straw costs less than a dollar on amazon. That’s over $30 in savings for a straw. What can you do with that $30? You can change your oil once, eat several meals, invest it, or put it towards a larger savings goal. This specific $30 won’t take you far, but a penny saved is a penny earned!
6. Put systems in place to set yourself up for success
Let’s say you get paid $800 one paycheck. By the next paycheck, you have $100 left over in addition to the new money coming in. Yay, an extra $100! Right? Wrong! That is not an extra $100 for spending money- that is an extra $100 towards your savings goal. Having a saving mentality is the most important piece to this puzzle.
For more personal finance tips and information, check out the Personal Finance section here on my blog.
An Olive Writes 