Everything I have learned about saving money has not led me to the places which I dreamed of being in. Putting money aside is smart, but how do you handle everything else: bills, necessities, and other miscellaneous things? These things do not just go away when we want something new.
This guide full of money saving tips will help you to establish exactly what needs to be done in order for you to be financially stable.
You must be really honest with yourself when getting your finances together. Swindling yourself will only put you in the hole deeper.
To begin, you will need a journal, notebook, just something to keep track of your financial goals and progress. In this journal, on the second page, you will write down every one of your recurring bills. Your phone bill, insurance, rent, payment plans, etc.
Now that you see everything you HAVE to pay, add everything up and you now have your monthly expenses.
The next step is where you shouldn’t swindle yourself. Think about the things you tend to or are bound to spend your money on in any given month. Recall how many times you eat out, how much you tend to spend on groceries, how often do you go to the club or go to the spa, etc.
These are the many things that soothe us or is just part of our self-care routine. Whatever it may be, write it down under miscellaneous. Then, write down how much you think you’ll spend on these things.
Moving forward with these money saving tips requires you to actually have a source of income.
If you are on a salary, the first portion of this section will not apply to you. To those of you that are not on a fixed income, or people receiving wages and/or tips, listen closely.
Be real with yourself. On average, how many hours do you work per week? What is your hourly rate?
After completing these calculations, you know how much money you have to work with each week. Now multiply that number by four to see the amount you have to work with on a monthly basis. In my case, it was six hundred dollars a week.
For those of you with a salary, divide your salary by four to be on the same page with everyone else.
Take a look at your expenses and income.
Obviously, if your expenses are higher than your income, then something has to give. The wrong mindset to approach this problem is what many people think, “I need to make more money.” This is where the discipline as stated before comes into play.
Your bills have to get paid. We may want that video games or our nails filled in, but is it worth your financial security? You know yourself, so if something needs to go, think about it and then decide.
Everyone is saving towards something, so make sure to set a monthly savings goal. Divide that number by four since we are still working on a weekly basis.
This number needs to be high enough to achieve your goals, but also low enough that you will not be taking money away and diverting it to those miscellaneous expenses you left back in step 3.
Money saving tips are just that, tips for you to follow in order to still have some money after your check. What you do with that extra money is completely up to you.
We’re now going to add everything together. This includes your weekly expenses for bills, miscellaneous items, and your savings, then divide that number by seven.
You are looking at the number that you need to make every day in order to handle all of your financial responsibilities.
The final step of this guide requires you to pay yourself. The daily number you just calculated is the amount you HAVE to pay yourself every day.
No matter how often you work, you see or have that money put up in a bank account. Working with cash might be easier because of many banks having a transaction and withdrawal limit. In this case, revert to the weekly balance.
If you stick to these steps, all of your bills will be paid, you will have a decent savings account holding, and you will still be able to indulge a bit.
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