Here in this article, I shared with you 10 simple ways that will help you to increase your savings. I hope these tips will help you to build a nest egg and more!
Saving money is not easy. Because it isn’t sexy. Especially for impulsive spenders. I know, things come up, you have your desires, you want to buy something so bad. But if you want to save money, you should follow practical yet powerful steps.
Some people are natural savers. So, saving money is easy peasy for them. But some people are not. For them, it is frustrating to not be able to save more money. According to researchers, more than half of Americans aren’t able to cover a $1,000 expense from their savings.
10 Simple Ways To Save Money
Since you are reading this article, I assume that you are struggling to save money as well. The good news is you are an action taker. You are trying to find out how to stop spending your money on unnecessary things and start saving money.
In this guide, I’ll share 10 suggestions with you that will help you increase your savings. It won’t be easy. You’ll have to break bad habits and focus on discipline. However, if you follow these steps, you’ll start adopting better money habits and save more.
- Be Honest To Yourself
- Define Your Priorities And Save Money For Your Needs
- Track Your Spending
- Set Goals
- Automatically Transfer Your Money
- Take Your Lunch From Home
- The 30 Day Rule
- Increase Your Income With Side-Business
- Buy Quality Products
- Do It Yourself
1-Be Honest To Yourself
If you want to start saving money, first you should face reality. Because there are some facts that you have to accept.
For example, let’s say you are spending money on clothes a lot. Even if you have enough clothes to wear. This means you have a bad shopping habit. Check your credit card debt and see yourself. Try to convince yourself to stop unnecessary spendings.
I know it is not easy to accept that you are accumulating thousands of dollars in credit cards for the things that you don’t actually need. But, trust me, once you do, you will start to head in the right direction to increase your savings.
2-Define Your Priorities And Save Money For Your Needs
You would like to buy a new phone. But you may not want to buy a standard phone. It could be your desire to buy a new model of iPhone, or the newest model of Samsung Galaxy series. You would like to buy a wireless headphone, and a smartwatch as well.
This shows that you are a fan of expensive brands and you are addicted to technology. And guess what! It is okay to want a luxurious lifestyle.
The problem is trying to buy everything at the same time. Instead of buying everything from your wants list immediately, try to define your priorities and save money first. Before you make any decision ask yourself what is the most important thing for me now.
Once you decide which one to buy first, start to create a budget for it. When you reach your saving goal, reward yourself.
3-Track Your Spending
Many of us ignore the power of money tracking apps. Because, usually we are thinking that we understand our cash flow. Unfortunately, this is not true. The truth is you should stop manually tracking your spending and start to use money tracking apps to better track your cash flow.
There are a bunch of money-management apps that do the work for you with their powerful analytic features. Plus, these apps keep you motivated by reminding you why you are saving money in the first place.
You can easily sync up all of your accounts to money tracking apps. After that these apps will do the rest for you.
There is a necessary rule that you must follow when it comes to success. You have to set your goals. Because setting goals is key for success. So, if you want to increase your savings, you should set goals.
The thing is you must be careful when you are setting goals. The last thing you want to do will be mixing reality with dreams, while you are trying to adopt a new routine. If you set unreachable goals, most likely this will break your courage.
This is why you should set realistic goals. For example, instead of setting yearly money-saving targets, set weekly or monthly targets.
Setting goals can be hard. If you want some help with setting goals, you can check the article from the link below.
5-Automatically Transfer Your Money
Personally, I am a fan of automation. Is there anything like getting benefits from technology? Especially if it makes things a lot easier for you. So, I am not seeing any reason to not take advantage of technology to increase savings.
Here is what to do. Log in to your bank account. Open a new account for your savings. Then, move to the money transfer section. Create an automatic money transfer order to your savings account for each month. That’s all.
Now you don’t need to bother yourself to make the same decision each month. That money will automatically transfer to your account for your future.
6-Take Your Lunch From Home
We are always underestimating the power of little savings. Packing lunch from home to save money is one of them. Here is the calculation.
Probably, you are paying around $10 to eat lunch outside. You are doing this 5 times per week. This means you are spending more than $200 for lunch in a month. If you make this calculation an annual basis, you are spending more than $2000 for lunch. Plus, I didn’t add extras here.
As you can see, it is not economic, and not healthy. And believe me or not, you can make it a habit to pack your lunch to work. The only thing that you need to do is to separate some time at night. You can easily find delicious and healthy lunch suggestions that you can prepare at home. Give it a shot to increase your savings.
7-The 30 Day Rule
There is a rule that you can adopt to your purchase process to prevent the feeling of regret after you buy something. I should warn you though. Because The 30-day rule requires a lot of patience.
Here is how the 30-day rule works. When you decide to make a purchase stop yourself. Set aside that decision for 30 days to see if you still want to buy this item when time passes. If you still desire to buy, do it. But if you don’t, well you know what to do.
I know 30 days can be a long time to decide to buy something. However, it works. If you trust your instincts, you can shorten this time to 14 days, or 7 days. The idea behind this rule is to wait long enough before buying anything.
8-Increase Your Income With Side-Business
When you are working a full-time job with the same amount of monthly income, there is a limit to how much money you can save. But how about how much money you can earn by creating a side-business?
Thanks to the internet it is possible to build a business on the side while working a full-time job. I am not saying it will be easy. It will take time and consume your energy. But you already know that no pain, no gain.
Be patient and work on your side business. When it comes to seeing its benefits, you will see an extra amount of money in your savings account.
9-Buy Quality Products
When you buy cheap products this doesn’t mean that you are saving money. I am not talking about big sales days. On such days, you can buy cheap products from well-known brands. However, I am talking about cheap products from bad brands.
So, when it comes to buying something, think about spending a bit more money. You may think you are spending more than it’s worth. But the truth is you are investing in quality that will last with you longer.
For example, don’t buy a wireless headphone from an unknown brand. Instead, pay a bit more and buy it from a well-known brand and use it for years.
10-Do It Yourself
Last but not least, do it yourself. Check your bills. Determine the ones that you can do at home and cut these expenses.
For example, cancel your gym membership. Today’s world there are a lot of free applications that can guide you to do exercises at home. I know, some of them have paid memberships. However, even with their free versions, you can make most out of it. If you want some help to find free workout apps, check the link below.
Another example, don’t take that language course. You can learn new languages by using free applications on your mobile phone. The only thing that you need to do is to download one of them and start practicing. If you want some help to find free language learning apps, check the link below.
This was just a very short list of suggestions to help you increase your savings. There are plenty of methods that you can try when it comes to money-saving. If you have tried one of them before, just share with us your experiences to support others in this adventure!