Saving money looks easy on paper but in practice might be challenging, overwhelming, or downright impossible depending on your outlook. However, there are many options out there that only involve small changes that are known to be successful
Saving money looks easy on paper but in practice might be challenging, overwhelming, or downright impossible depending on your outlook. However, there are many options out there that only involve small changes that are known to be successful. Here are some methods that can help you get on track with your money.
Keep Track of Your Spending
One way you can start saving money is by knowing how much money you spend. Keep track of what you’re spending – every cup of coffee, subscription, take out item etc. You want to note every item or service you buy. Then you can review what you spent and where you spent it and see if there are any areas you can cut back on spending. This can help you better understand where all your money is going and then help you come up with a spending plan and budget. Maybe you eat out less or cut out that $5 cup of coffee. Maybe you try generic over name brand. The little things add up, so finding ways to cut spending in the smallest of things can help you save big.
Cash Envelopes
It has been proven that you are more likely to spend less money if you use cash instead of a card. One system you can use to organize your cash is by using envelopes. The first thing you will want to do is set up a monthly budget. You will want to consider what your average monthly income is and figure out how much you can spend on various categories. You can create different categories based on your personal needs but here are some examples of some:
- Rent
- Utilities
- Transportation
- Food
- Clothing
- Fun/Entertainment
- Savings/Emergency fund
You will want to put the amount of cash you decided on into each envelope at the beginning of each month. Then as you go through the month, you will use the envelopes towards whatever category you decided on. Once the cash runs out, you have to wait until the next month when you refill the envelopes. This method is helpful because it lets you see the money you have to spend and prevents overspending. You have to really decide on the things you are buying. It might take a few tries to get the right budget for you, but in the end if you stick to it, you will see results and have extra money in your hands.
Banks
Finding the right bank that will help with your financial needs can help you save money. From online banks to traditional banks to credit unions, there are many options that can help you save money. You will want to know your options. Look into places that have no fees for things like basic transactions, monthly fees, and service fees. Also try to find a place that will pay higher interest rates on the money you deposit and charge lower interest rates on the money you owe.
Split Direct Deposit
Like the name suggests, splitting a direct deposit allows you to split your deposit into multiple accounts. You can base the split on a fixed amount or a percentage of the payment. Your employer should be able to help you set up this process. This can be very helpful if you are looking to add to your savings or create an emergency fund. By automatically having some of the money set aside in a savings account, you are setting yourself up to have money to spare whether to save for something important or for a rainy day.
If you want to get some help with your savings or have other financial needs, Mary Rigg is here for you. Financial coaches are available to help you with things like establishing financial goals, creating personalized spending plans, and repairing credit among other things.
Sources
https://www.nbcnews.com/better/business/how-save-money-using-envelope-system-ncna747451
https://wallethub.com/edu/direct-deposit/14485
https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money