We have all been there something unfortunate happens that costs a lot of money, and you do not have any savings to help with the situation. Sometimes the hardest thing about saving money is getting started. It can be difficult figuring out simple ways to save money that is doable. Here are 9 simple ways you can save money and not break the bank when there are a series of unfortunate events.
- Record Your Expenses
The first step is to start tracking what you are spending when you are spending it, and what you are spending it on. This means tracking everything-coffee, snacks, clothes, groceries, mortgages, car payments, etc. Once you have all of your data, organize and categorize all your spending areas.
- Make a Budget
This step goes hand in hand with step number 1. Once you have successfully tracked and categorized your spending habits it is time to sit down and budget those expenses. Your budget should outline how your expenses measure up to your income. Doing this will allow you to set and spending limit and avoid things like overspending. It is always a good rule of thumb to factor in expenses that occur regularly but not every month, such as car repairs/maintenance.
- Plan to Save
As I said before the hardest part about saving money is getting started. Now that you have made a budget you can create a savings category to get you started. Try to put away 10-15% of your income as savings. If that is not applicable trying put back a little each paycheck, $10 or $20 each check. Believe it or not, if you get yourself in the habit of doing so it will be much easier.
- Choose a Goal
Setting a goal is one of the best ways to save. We all know that it is much easier to put money back if there is something that we want. Best practices would start by thinking of what you might want to save for and how long you think it will take. Remember the key is to be realistic.
- Make it Automatic
Almost all banks offer automated transfers between your checking and savings account. You have the ability to choose when and how much money you want to transfer. If your paycheck is directly deposited into your account you can even set it up to transfer automatically once it goes into your account. Start small and work your way up.
- Track Your Progress
On your journey to your savings goal mark milestones throughout your journey. If you reach your milestones give yourself a few rewards here and there. Pick a day one a week or month to look at your progress.
Saving is a great thing if you put your mind to it, and the best part is you will thank yourself later.
Written by: Rebecca Kidd