Making small changes in your spending habits can have a big impact on your ability to save money, even when you don’t have much to start with. Here are five ways to get started:
1. Make a budget and stick to it.
The first step to saving money is understanding where your money is going. Track your spending for a month to get an idea of your regular expenses. Then, create a budget that allocates your income towards necessary expenses, like housing and food, and leaves room for savings. Once you have a budget in place, make a commitment to stick to it.
2. Brown bag your lunch instead of eating out.
Eating out can be one of the quickest ways to burn through your budget. If you brown bag your lunch instead, you can save money and still enjoy a delicious and healthy meal. Just make sure to pack food that you’ll actually want to eat! It’s ok to eat outside once in a while, as long as it falls within your budget.
3. Use coupons and shop sales.
You don’t have to be an extreme couponer to save money on groceries and other necessary purchases. Simply taking the time to bring coupons and shop sales can help you stretch your budget further. You should also plan your grocery list around sale items.
4. Cancel unused subscriptions or memberships.
Do you have a gym membership that you never use? How about a magazine subscription that you can live without? If you have any unused subscriptions or memberships, consider canceling them to save money. Even small subscriptions can add up to quite a substantial amount.
5. Put money into a savings account with automatic deposits.
One of the best ways to save money is to make it automatic. Set up a savings account and have a fixed amount of money deposited into it each month. This way, you’ll never even see the money and you’ll be less tempted to spend it.
Saving money can be a challenge, but it’s possible to do even when you don’t have much to start with. By following these tips, you can make headway on your goal of building up your savings.
For advice on how to grow your savings account with minimal effort, check out my previous post on investing.