You know you need to save money, but you don’t really have any extra cash to stash away. Sound familiar? Finance experts constantly offer advice on what we need to save for – emergencies, retirement, a down payment on a home, and more – but when it comes to actually saving the money, how do people do it? The secret to getting started is starting small. Cutting ten or twenty bucks here and there can add up to a monthly savings of a few hundred dollars. Here are five ways to put more of your spending towards your savings goals.
1. Automatically transfer money from your paycheck to your savings. If you don’t ever see the money, you won’t be tempted to spend it. Automatic transfers are genius because they move the money out of your checking and into your savings before you can even see it. You can set this up once a month or bi-weekly, and you can choose an amount you’re comfortable with.
2. Downgrade your cell phone plan. Moving down to a cell phone plan with less data might save you twenty bucks a month or more. You can even switch to a low-cost provider, like Metro PCS or Cricket, and pay $30 or less a month.
3. Watch out for auto-pay. Do you need all those things you have on auto-payment? Spotify, Tidal, Netflix, your gym membership, and so on? Sort through these items, and only keep what you actually use on a daily basis. Drop everything else. And if you actually miss it, you can always get it back.
4. Shop generic. Americans tend to overspend on food, drinks, and pharmaceuticals. Don’t be a slave to name brands, and start buying generic. This can save you a ton of money in the long run.
5. Raise your profile. The best way to save more cash is to make more cash. Discuss a raise with your boss. And if you get it, put all that extra money into savings. You can also consider getting a second job, if you have the time for it, and stashing away all of your hard earned paychecks into a savings account. Just don’t forget to treat yourself every now and then. That will make saving a lot easier.
