Looking to bolster your cashflow in the coming years but not sure where to start? Most people believe saving money is just not a possibility with their current job and lifestyle but this simply is not true. Everyone can save money if you follow simple guidelines and be strict on yourself.
Map Your Monthly Expenses
The best way to save up cash is to think about what your monthly expenses are and then create a savings plan that accommodates them. This is typically done with a bank account, but there are also apps on the market, such as Acorns, which automatically invest spare change from everyday purchases into diversified ETFs. In order to do this, you’ll need to set up an automatic transfer from your checking account every month as well as link your bank account with their app on your smartphone.
The most important thing with this is to track your expenses, so you can see exactly what you are spending money on. Then, set up a budget for yourself and go through every expense you have. If there are things you can cut out of your budget, do it. However, don’t cut out what you need in order to pay bills or buy food. You’ll want to keep these things in your budget because they are necessities that everyone needs in life.
Setup A Personal Savings Tax
Just like we pay tax to the government a good saving tip is to place a little bonus tax on yourself. This may be 10-15% of your weekly paycheque but considering this a “savings tax” makes it easier to make sure you’re not thinking this is in your budget. If you’re getting a monthly paycheque, then add 15% to that. This will be your tax on yourself and when you get paid again the following month, you take away this tax.
Take Advantage Of Your Employer’s Savings Plans
Many employers offer savings plans in which you either deposit a percentage of your income or set an amount and they’ll match it for you. There are also tax savings to go along with this, so it’s a good idea to take advantage of these if possible.
Join The Save More Tomorrow Plan
This is a fantastic plan where you set aside small amounts of your income every couple of weeks and then at the end of the year put aside more money. This will help to ensure you save enough throughout the year because by the end you’ll be saving more than you would otherwise. You can use this method whether or not your employer offers it as well.
Do Not Spend Money On Lattes
As a society, we seem to equate money spent on food and entertainment with a good time had. However, this is not the case. Just by looking for a more affordable coffee shop or stopping by a grocery store on your way home from work you can save a lot of money on that cup of coffee every morning. You could also use that time to read or study if you’re working towards furthering your education or career.
Use A Mint.com Account
Using a Mint.com account can really help you to keep track of your spending and save money at the same time. This is a free account that allows you to see exactly what you are spending money on, where it’s coming from, and varying options of where it’s going. It will also show you how much debt you are in, if any, and how much more debt is on the way if you continue spending as normal.
Pay Your Bills In Full
When you have a bill that you must pay, pay it in full rather than splitting it on a date. In some cases, this may mean paying for an entire month on one bill instead of paying your rent and electricity in two separate payments. This will save you money in the long run and means none of your bills will be late.
Invest Your Savings
Don’t Forget To Invest For The Future
Finally, if you’re looking to save money in the long term, it’s also a good idea to invest. There are many great savings plans that allow you to invest your tax return in exchange for lower taxes, but there are also fun methods of investing in entertainment companies or even real estate. Investing is the best way to save up cash because when you do so, over time your profits can turn into something bigger than what they were when you started.