If you are on a very tight budget, and you are always worried about how you are going to get through one month to the next, you are not alone. The economy has got everyone cutting back on luxury items and saving more. But how can you save money effectively without compromising your lifestyle and still breathe easily? Just follow our top 5 tips below!
#1 Keep Track of Monthly Expenses
You should have an idea of what you spend during the course of a month. But keeping track of what exactly is coming into and going out of your account is key to getting a grip on your saving habits. Keep receipts, draw up an excel sheet and stipulate all the expenses of the month. This will help you avoid overspending.
#2 Draw Up a Budget
Once you have your expenses sheet ready, you are equipped with all the information you need to draw up your budget. Include your income and allocate all your expenses in a new spreadsheet. Now you are able to see if you are currently overspending.
#3 Decide How Much You Want to or Can Save Monthly
Now you can decide what exact amount you are able to put away each month. Depending on your individual needs, you can either allocate some extra cash to unforeseen expenses and dedicate a set amount to save monthly. Be sure that you cannot easily access this money.
#4 Get Your Priorities Straight
There is a big difference between buying something you need and buying something you want. Learn how to distinguish between actual needs and wants and you should be able to start prioritizing your spending allocation.
#5 Choose Something Specific To Save For
Whether it is a long-awaited second honeymoon, home improvement costs or saving for your retirement, deciding on what you want to save for will keep you motivated to save. Once you have decided what you are saving for, keep track of how your savings are accumulating over the course of a couple of months. This will also serve as motivation to get you closer to your saving goals.
Saving can be difficult, especially if you have unplanned expenses for a couple of months in a row. Hold on tight and stick to these steps and stay committed – you should be on your way to saving perfection in no-time. Did you find any of these tips helpful? Share your own money saving tips in our comment section below!