As you embark on your journey of financial abundance, it is very important that you start saving and begin to grow your net worth. Saving money is not hard but it requires discipline, focus, determination and a plan. The best way to reach your financial goals is to have a plan and then take action. Taking action can come in many ways, with this in mind, here are the best strategies to start saving money today.
Start with a Budget
A budget is a critical step in saving more money because it enables you to see where all your money is going and gives a snapshot of your financial life. Budgeting can be done in many different ways and can be as simple as documenting your income and expenses in a simple spreadsheet or even in a notebook. We talk extensively about organizing your finances and making a budget here. The great news is that there are many budgeting apps that provide different kinds of functionalities in tracking your budget. Some of the best ones are: Mint, You Need a Budget, Good Budget and Digit. They all provide automated ways of budgeting and give you a good view of how your money is allocated.
Make a Savings Goal
Having a goal is essentially in allowing you to save money. Ask yourself the question, why do you want to save money? Do you want to save money to buy a house? Are you saving up to build an emergency fund? Decide on a savings goal and start the process of getting to this goal. A goal will keep you accountable and let you know if you are on track.
Automate your Savings
If you want to save some serious money, you will need to automate your savings. Open a high interest savings account and set up an automatic deduction that comes out either every month or bi-weekly, whatever works for you. You can start with any amount that you have – whether it’s $20 or $50, the most important step is that you get it done. Automation is awesome because this money will go toward funding your savings account and with each month, this amount will grow and you will not have to think about manually saving this money.
Another way to automate is to reach out to your HR Department at work and have them automatically send an amount to your savings account. This will ensure that when you get paid, you are able to pay yourself first and save. It is very easy to focus on paying bills first and neglecting the importance of saving something for a rainy day. With this approach, you can set it and forget it and not worry about scrambling to save after you’ve met all your monthly commitments.
Cancel all unnecessary subscriptions
Subscriptions are amazing – you pay a monthly fee and you get access to certain services that provide an entertainment value or some other benefit. However, these subscriptions can become expensive very quickly and they can drain your monthly finances. Using our system of organizing your finances here at Abundance of Jo, go through your expenses with a fine-teeth comb and cancel all the subscriptions that no longer serve you. This will free up some extra funds that you can allocate to your savings account and give you a greater chance of reaching your savings goal.
Pay Down Debt
Are you drowning in debt? It could be student loan debt or credit card debt – any type of debt will make it difficult for you to start saving. Try to pay extra funds (if possible) to your debt so that it can be reduced and eventually get paid off. As you focus on paying off your debt, try to still save something – even if it’s a small amount as having an emergency fund is critical. If you encounter any sudden expense like your car breaking down or a medical emergency, you want to be in a position to make those payments so that you don’t continue to rely on your credit cards or any other type of debt.
Maximize Your Employer’s Pension Contributions
Most employers offer some form of pension matching program – where they will match up to a certain amount of money that you contribute to the pension program. This is essentially free money, so do the obvious – participate in these programs and try to maximize the contribution so you can get this money. Another way to save money is tapping into any employee discount programs that you may have access to at your company. Reach out to HR and ask about these offers – they may include discounts on hotels, cell-phone service or even car insurance. Use these discounts and you can save some serious money and keep you on track on reaching your financial goals.
Start Meal Planning and Use a Grocery List
While dining out can be a pleasant and fun experience, it can become expensive and can add up. At the beginning of the week, plan out all your meals for that week and based on this, build a grocery list with all the items you are going to need so you know exactly what to get when you go to the grocery store. Meal planning also allows you to save ample time in the week as there is no time spent trying to figure out what to cook which makes you less likely to buy food or dine out.
Conclusion
Saving money is a very important part of building wealth. In the end, when it comes on to money, it is not only how much you earn but it’s actually how much you keep. This is very important and having a savings goal to work toward will give you the focus and drive to build a solid saving habit. There are many ways in which you can save money, these strategies will get you moving in the right direction.
As you start saving, it’s essential that you get your finances in order, subscribe to our newsletter and get a FREE copy of our Money Guide that will give you the steps you need to build a solid financial foundation. In this Guide you will learn how to calculate your net worth, organize your finances and set a financial goal for you to get on track.
Let me know in the comments, which of these tips will you use to start saving today?
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