Saving money each month may seem like a hard task, but it doesn’t have to be! Saving money consistently is an essential financial habit everyone needs to develop as it is one of the critical components of personal finance.
I have put together 14 ideas that can help you save more money every month in this post. These are ideas that you can start now and develop over time. So grab a pen and a jotter now.
1. Use The 50/30/20 Rule
The first step to saving more money each month is to know how to manage your income. There’s no better way to manage your income than using the 50/30/20 rule of money. You should try to use this rule to manage your income as it is the first step to saving more money each month.
This rule simply means 50% of your income goes into your needs, that is, the things you can’t do without like food, shelter, clothes, etc.
Then 30% goes into your wants. These are the expenses that you can live without and still enjoy your life. They are things you buy for fun or leisure.
Then 20% goes into your savings or investments.
2. Have Savings Goals
Have a specific and realistic savings goal. Your goal might be to save $5,000 in a year or to have $2,000 in your emergency fund at the end of the year. But make sure you take into consideration your income and expenses when setting your savings goals.
3. Cancel Unnecessary Subscriptions
These days we now have so many apps and services that we can subscribe to on our phones like streaming services and so on. Some of these subscriptions do add up to a lot if you calculate them. Take a look at all your subscriptions and see the ones you don’t use at all or regularly, and cancel them.
4. Pay Your Debts Fast
Paying debts can be a whole of a burden on you and your money and this can really draw you back from achieving your savings goals. If you can find a way to pay off your debts fast, you will really do yourself a lot of good. You will free yourself from that burden and be able to comfortably save more money.
5. Pay In Cash
Yeah, I know when you spend cash you are still spending money. But the psychology of spending cash makes us more mindful of giving up everything than just swiping your card or paying online. So paying in cash helps you to be mindful of how you spend your money because you won’t want to see your wallet empty.
6. Work Out At Home
I’m sure you might have seen on Instagram how some of your favorite influencers or even your distant friends are joining different gyms and you feel intimidated to want to join.
What you don’t know is that those gyms cost a lot of money especially if you are going to be paying for an annual membership. To save money, you can buy a yoga mat to work out at home, or you can go out for a jog in your area.
7. Use High-Interest Savings Apps
The best way to save your money and maximize your savings is to use a high-interest savings app. There are some finance apps that can allow you to save and they pay interest rates that are higher than the ones you get in the banks. Tap here to check them out.
8. Use A Shopping List
We’ve all been to the store to buy things without a list and what happens is that you come back from the store with things you never had in mind to buy or things that you don’t even need. Sometimes you can even spend more than what you plan to spend in the store. So it’s a great idea to always go to the store with a list of items you need to buy.
9. Buy In Bulk
Buying in bulk can really help you save a lot of money. However, you should only buy in bulk if you know that you are going to need the items. And make sure they are things that can’t get spoilt, damaged, or expired if not used in time. This idea is better for non-perishable items.
10. Plan Your Meals
One of the easiest ways to reduce your expenses and save more money each month is to prepare your meals and reduce how you spend money in restaurants. If you regularly eat in restaurants, you should reduce the rate at which you go and buy foodstuff and prepare your meals yourself.
11. Sell Unused Items
Most of us have some unused items in our kitchens, stores, garages, and wardrobes that we don’t use anymore but we can earn some money by selling them, even if it’s at a very cheap price. You can put them up for sale in different online marketplaces you can find to bring some cash in.
12. Automate Your Savings
There are so many high-interest savings apps that can allow you to set up automatic transfers from your bank account to your savings account every day, week, or month. This way, you don’t have to do any additional work or spend time and energy thinking about making a transfer to your savings account.
This strategy can be really useful especially if you have a savings goal or you lack the habit of saving money.
13. Use Discounts
Take advantage of discounts from your favorite stores or vendors to save on some expenses. You can use coupons on different websites to get discounts on your purchases. You can also ask for discounts even when there are no discounts. There’s no sin in asking.
14. Track Your Expenses
Keeping track of your expenses really helps you to know how you are spending your money every month and this helps to know if there are some expenses you need to reduce. You can use a budget app or a budget template on google sheets to get started. Or check out these five steps to track your expenses every month.
Saving more money every month is a habit that you need to cultivate and develop over time. With these 14 ideas listed above, you can 10X your savings in a year.
Let us know which of these ideas you will be starting with next month. Leave a comment in the comment section below. Don’t forget to share this post.
>> MUST-READ: How To Create A Budget & Stick To It