For many people, saving money is a daunting experience. I’m here to tell you that this does not have to be the case. There are small simple steps that can be taken that will result in big exciting results! The first and most basic step to take towards saving is: opening a savings account. You can do this with your bank where you have a regular checking account. Another option is to open an account online. I recommend researching all the available options and comparing the interest rates (I will post more about various options in the future).
So the first step is completed and you have your first savings account. Great! Now what? What you need to do next is to decide on an allocated amount that you would like to put away each month, or out of each pay check. Depending on whether you get paid weekly or bi-weekly, this amount will vary from person to person. An easy trick is to set up an automatic transfer to the savings account this way it happens automatically. For example, a good number to shoot for would be to try to save 20-25% of your take home pay.
The next step, and what many would probably deem the most difficult one is the act of cutting back on spending. Below I formulated some basic tips on how you can avoid wasteful spending on a daily basis:
- Make coffee at home before work instead of purchasing it. Think about this in numbers. Let’s say a medium cup of coffee costs you $1.75. that’s $8.75 per week, $35.00 per month and $420.00 gone on coffee per year!!
- Bring in your lunch instead of going out to eat. If you can’t bring something in for all 5 days, at least try to do it twice or three times per week.
- Cut back on your social activities (eating out at restaurants, going to the movies, bar hopping etc.) Think about all the money that you will end up spending at the bar on food, drinks, and cab rides. I’m not saying to become a monk. But if you limit yourself to going out a few times a month, as opposed to every weekend or every other night, that money will accumulate in your pocket and make a significant difference in the long run.
- Cancel your cable subscription!
- If you find yourself desperate to buy “that blouse” or “that piece of furniture” or “that football jersey” DO NOT buy it in the “heat of the moment.” Wait 1 week. If, after 7 days, you still feel that you absolutely need it, you can purchase it. But if you feel that you can live without an extra piece of material lying around the house, then kudos to you!
- For all the female readers, skip the nail salon and give yourself a manicure once in awhile.
- Get a membership to a BJ’s or Costco and buy in bulk!
- Also, in relation to #7, always coupon when you can.
- Use Ebates.com when shopping online (I attached a referral link so we both get a bonus! Help Support the site!). Remember that blouse that you just had to get from #5? Well now you can buy it through Ebates which allows you to get cashback ranging from 2%-20% depending on the site and offers.
- Leave your credit card at home and bring an allocated amount of cash with you that you think will be enough for the daily necessities.. If the money isn’t there, then you cant spend it, right? In the future we will talk about more advanced credit card techniques to take advantage of points and cash back.
Please feel free to comment below with questions on any of the above and with suggestions of what you would like to see in the future.
– Mrs. Trader Tony