Saving tips. Don’t chase unicorns.
Do you want to save money but feel overwhelmed by where to start? Or, are you like 38% of Americans who need to focus on reducing expenses before you can save? An excellent way to start saving money is to evaluate your lifestyle and goals. We all want to enjoy life, but balancing expenses and income can often add stress. Saving shouldn’t feel like chasing unicorns.
Here are some tips that may help you start this journey and reach your goals with less stress.
Make a budget and track your expenses
This tip is a classic, but it is crucial to know how much you are spending. Start by adding larger expenses like rent, utilities, and subscriptions. These recurring expenses will help you know how much you need to make in order to start saving. You can use Excel, Google Sheets, or a notebook to stay organized. Technology will help project these numbers into the future.
Next, track your other expenses, like groceries and food/drink out. Compare how much you spend every month to how much you earn. You may be surprised how fast small expenses add up. You should begin to notice places where you can spend less. It is best to do this every month, and you can get help from free apps, like Spendee or Mint.
Set a saving goal
Be realistic with yourself, but set a goal that makes you excited to save. It’s okay to start small to guarantee early success. Remember, saving is a habit you need to build over time. Like training for a marathon, you have to start with short distance runs. Don’t aim for a new car when you cannot save for a holiday trip.
Cut down small expenses
If you’re like me, you’re now spending a lot of time indoors looking for ways to indulge yourself. You’d be amazed by how many times I walk to the kitchen looking to snack out of boredom. This increases my grocery store expenses because I buy more snacks than needed. Consider making a shopping list and be thoughtful about what you need. Again, small purchases add up fast!
Check your subscriptions
Subscriptions are easy to get, so we end up with a lot of them. Take time to check every charge on your bank statement, make a list, and cancel any that you can do without. That $9.99/month app you don’t use will save you $120 over a year. Apps like Trim, Truebill, or SubscriptMe can help you sort through your expenses.
Don’t forget to treat yourself
Saving should be gratifying and shouldn’t be the enemy of your lifestyle. Once you’ve built the habit, you can find ways to treat yourself and have an exciting life. A good exercise is to find a way to save a little more to offset the expense of your treat. Once you have a long term habit, you can set your average monthly savings amount to auto-deposit into your savings account.
The best savers are conscious of their expenses. It’s not easy to go the extra mile and develop this mindset. Remember that the goal of saving is to bring joy to your future. The best way to acquire this habit is to feel good about it. Be realistic with your goals, and enjoy when you reach them!
Disclaimer: This article is for informational purposes only and is not a substitute for professional financial advice. Opinions, tips, advice, or other information in this post do not necessarily reflect those of Linus.
To learn more about how Linus can help you maximize your return on your savings, visit www.getlinus.io.
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