Whether you are looking to save money in order to clear your debt, purchase a new car, put a deposit down on a new home, stage the perfect wedding,or go on the vacation of a lifetime, these simple budgeting tips will help you save money. It might seem difficult at first, but the key is to look at it as a spending plan rather than a restrictive budget. You will not be quitting spending completely, instead you will be prioritizing some financial goals over others.
Make a Budget
A popular budget that many people use to save money is the 50/30/20 budget.
- 50% of your post-tax income is used for necessities.
- 30% is devoted to things you want.
- 20% is stowed away in savings.
If you stick to this spending plan, you should be able to save a lot of money over the course of a year.
Use Digital Tools
There are lots of apps out there to help you budget. Some banks automatically transfer money from your checking account to your savings account each time you spend. You will not even notice that the money is gone until you start to see your savings grow. This is great because it allows you to save money with the minimum amount of effort.
Collect Your Change
Empty your pockets when you get home each day and put the coins in a money box. Checking down underneath the cushions on the sofa, or underneath your car seat are also great ways to help fill your pot.
Cut Down on Expensive Clothes
It is possible to spend vast amounts of money keeping up with the latest trends in fashion. However, the clothes are often overpriced and tend to go out of style very quickly. It is okay to splurge on something you really love occasionally, but for the most part you can get high quality clothing at sites like this for a fraction of the cost.
Plan Major Purchases
Always plan to make major purchases, such as household appliances, furniture, computer equipment or cars, during annual sale periods. Post-Christmas, January sales and Black Friday events are perfect for this. Another underappreciated tip is to wait two days before making a purchase, even after you have decided on which product you are going to buy. This helps prevent buyer’s remorse.
Remain a Stranger to Online Stores
A great way to limit the amount of money you spend online is to opt out of creating online shopping accounts. You are much less likely to make impulse buys if you are required to go through the arduous process of filling out all of your personal data and billing information each time you click through to the online checkout.
Make Your Own Gifts
The cost of buying birthday, Christmas, anniversary, and wedding presents for all the various people in your life can really add up fast. It is not only much more economical, but it is usually seen as more thoughtful and caring to make your own gifts to give to loved ones. Even if you don’t spend a lot of time creating arts and crafts, sites like this can give you the inspiration you need to make a great gift.