I haven’t always been the shining example of saving money, I admit it. I have recently started getting my budget under control and saving up a bit for some nicer things that I have wanted for a while. The first thing that I would like to get for myself is the Louis Vuitton Neverfull, as I mentioned before. These are some of the tips that I have to help you gather the extra cash to invest/put into a savings account/spend on something nice.
In this post, I’m going to cover tips on how to save the money you’re already making. I’ll be coming out with a second post shortly that outlines how to make more money.
- First and foremost! Set up a budget (it can be as rough or as detailed as you want), and stick to it.
Input all your basics, like rent, phone bills, utilities and insurance, decide how much you want to spend in your other essential categories (like food). Set some money aside as a “cushion”, and set some more aside as your savings.
- Set up a savings account for each specific thing you’re saving for. One account for the handbag you want, another for your downpayment, and a third for your dream vacation, or whatever your goals are. Here’s the trick to make it feel real. Give these accounts specific names, and set up automatic deposits to these accounts at a set frequency. (Once a month, or the day you get paid).
- Cut the coffee (and other recurring expenses that aren’t necessary to you). This could mean packing lunches every day instead of eating out and making your morning coffee before you leave, but also things like dying your hair back to its natural colour or doing your manicures at home.
To give you an idea:
A fancy coffee at a large chain establishment $5 (add another $3 for a pastry) X five days a week X four weeks a month = $160
A moderately priced takeout lunch $10 = $200
Biweekly manicures at around $30 each (plus a tip) = $70
Obviously, these are estimates, but these relatively inexpensive habits can add up to a lot of money spent every month that could be going towards that Chanel handbag or that dream vacation.
- Switch your spending method. If you put everything on credit, try using your debit card instead. Now, the money is gone as soon as you spend it, no waiting to see how much of it to pay off at the end of the month. If that doesn’t work for you, switch to cash and try to carry large bills- especially if you’re prone to making a lot of smaller purchases. You’re much less likely to break a $100 dollar bill to buy a snack or something to drink than you are to break a $10.
This also helps you to see exactly how much you’re spending. You literally watch your money leave.
This is getting a bit wordier than I hoped, so I’m going to split it in two. My next post will be on ideas to come up with more money so that you can reach your savings goal even faster. What are your best tips for saving money? Leave them in the comments or tag me on social media!
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