Money

5 Simple Ways to Start Saving Money

5 Simple Ways to Start Saving Money

Saving money is an important life skill but it doesn’t come easy for everyone. And anyone would prefer to have some kind of financial safety net, instead of constantly living paycheck to paycheck. 

Expanses never cease and they always increase, and starting to save money can easily seem impossible. But, regardless of the reason why you need to start saving money, whether it’s to buy something, to be able to afford some luxury, or just to feel safe if you start making some changes right away, it will pay off soon.

Here are some tips that can help you finally see some funds on your account at the end of the month, and make your financial future seem brighter. 

1. Just Start

The easiest way to start saving money is to simply start putting money aside. Have some percentage of your salary automatically transferred to your money account every month. And then, forget that that money exists. Pretend as if your paycheck is smaller than it is, as if that’s the only money you have, and you have to make do with it. If this is something you think you can do, go for it. However, this way of saving isn’t always realistic for everyone.

2. Learn How You Spend Your Money

The first thing you need to do is make sure you know how much money you have and how much you spend. This can make a huge difference in your efforts to start saving. To do this, you must start tracking your personal finances for thirty days. This means knowing exactly how much money you had on day one, for instance when you get your salary and note everything you spend on. 

To make this easier, instead of writing down each product, you can make categories. For instance, instead of writing “oranges” and “cucumbers” separately, you can write down “fruits and vegetables”, or simply “food”. 

3. Learn What You Can Live Without

Most of us spend money on things we don’t really need. Sometimes it may seem as if we don’t have a choice but to spend on something.

Sometimes these expenses can seem so small, that we can easily disregard them as insignificant. Spending $20 a week on something may seem insignificant but when you think of it like $1000 a year, it suddenly becomes significant. If you take a closer look at what you are spending on, you will likely find things you can easily change to save money. 

For instance, you may notice that you spend too much money on snacks or take away food when you are at work, and instead start preparing your meals from home, or find another way to reduce this expense. Other expenses that may be unnecessary include buying clothes you don’t need or never wear, too much food that you throw away, paying for services you don’t use, such as the gym or a streaming service, going everywhere by car, and so on.

4. Count the Small Expenses

You should also take the small expenses into account, or things on which you spend a small amount of money every day, such as snacks or coffee. Even if the amount seems insignificant, it piles up, and if you reduce this expense, what you save on it may end up being the beginning of your safety net.

For example, you might end up paying just a few dollars as subscription fees for streaming platforms. But when you add up everything- Netflix, Hulu, Prime, Disney, Spotify, Apple Music, etc. you are looking at hundreds of dollars. Stop spending a single dollar on them and start using The Pirate Bay instead. Get all your movies, tv shows, and music albums on the platform.

5. Save Money on Utilities

This is a classic one. Imagine how much you spend on bills every month, and imagine finding a way to reduce those expenses. For some this may sound unrealistic, and for others simple. But it’s really neither. Of course, there are some simple ways to reduce your bills, such as switching to energy-efficient light bulbs and appliances, turning off lights and electronics, etc.

However, it will also take a lot of effort. Especially because it may mean changing some life-long habits. For instance, most of us don’t use appliances efficiently. You may run your washing machine with just a couple of pieces of clothes, or rinse the dishes before putting them in the dishwasher. Cleaning the air conditioner vents and changing filters, are also good examples of how with a little effort you can reduce your utility expenses.

DIY Home Energy Audit Checklist created by Mendel Plumbing and Heating

Key Takeaways

The world is as it is, and regardless of your attitude towards money, without it, you can’t survive. This is why it’s important to start saving as soon as possible, and why if you don’t know how to, you must learn.

In a nutshell, to save you must know how much you spend and on what. Then you should find which of your expenses are unnecessary, reduce some of those that are necessary, like food, clothes or utilities. Finally, the simplest and the hardest part – put money aside.

About Author

Dana Cull

Dana is a digital content creator with a self-confessed obsession with writing. She is also an avid reader and loves to spend her leisure hours watching documentary films from different directors across the world.