You know that it is important to save money. Financial security is something that most adults strive for but many never fully achieve. Many people live on tight budgets that make it difficult to save. Others are distracted by their careers or life in general. As long as they have what they need and the bills are getting paid, they don’t have time to think about saving for the future. Let’s have a look at ways to save money easily for a vacation, buying a home, house renovations, or retirement.
How Much Money Do You Need to Save?
Saving money should however, be at the top of your priority list whether you’re single or have a family. How much you need to save is different for everyone. It depends on what you’re saving for, your income and your expenses. Still, there are a few basic guidelines available to help you determine how much money to save. One of the most popular methods to use is the 50/20/30 financial rule of thumb.
Here’s how it works:
- Spend 50 percent of your income on necessities. This includes your home, utilities, groceries, vehicle maintenance along with anything else you consider an essential to survive.
- 20 percent of your income should go into savings. This money should be sent directly to your savings account so you never even see it.
- 30 percent of your income should go on personal things. This could be anything from dining out once a week to taking the kids to the Amusement Park.
Keep in mind this is just a guideline. You may not need to spend 30 percent of your income on personal things. In which case, you can save more than 20 percent. Therefore, use the 50/20/30 financial rule of thumb as a guide to help determine how much to save and then adjust it to your lifestyle. Now that you know how much money to save each payday, it’s time to get started on that budget to help make it happen.
Easy Ways to Save Money on a Tight Budget
If you’re already living on a tight budget, saving easily might sound impossible. How are you supposed to save extra money when you barely make enough as it is? Millions of people are in the exact same boat. You know how important it is to your future, but it might seem very difficult to save when you just don’t have enough to begin with. Let’s look at how to save more money each month and a few ways you can make this happen.
Here are 3 ways to save money on a tight budget:
1. Always hold off on purchases – For any non-essential purchases, wait at least 24 hours before you make them. This lets you see when and where you can cut back and it reduces impulse spending.
2. Take advantage of employer savings matching – If your employer has a fund to match your savings, be sure to take full advantage of this. In many of them, if you contribute 5% of your pay, they will match it with 5%. You’re getting double the savings.
3. Automate your savings – Set up automatic transfers to move a certain part of each paycheck over to your savings before you ever see it. This ensures you have your savings (no matter how small) before anything else is spent.
Saving money on a tight budget isn’t easy. It’s hard to make something out of nothing, but if you follow these money saving tips and stick with it, it can happen. You’ll then have some savings that will help you get through tough times in the future, should any emergencies occur. Way to go!
Tips to Save More Money
Are you looking for ways to save more money this year? Maybe you’re saving for a big purchase, a vacation, to pay off a loan, or just to build up your nest egg. Whatever your reason for saving, here are some tips on how to save more money easily and do it smartly.
Here are 4 sensible ways to save more money:
1. Pay yourself first
Set up automatic withdrawals to take money directly from your paycheck to send to your savings account. If you don’t get paid this way, pay yourself first manually, before any of the money is spent on anything else. This might seem difficult if you don’t have a lot of money to work with as is, but it’s important that you save, even when you can’t really afford to.
2. Avoid any new debt
It sounds obvious, but this one is an important one. You need to do everything you can to avoid any new debt while you’re trying to save.
3. Creative Ways To Save Money
It’s not always easy to cut back on your spending, especially if you’re already living on a tight budget; however, if you dig deep, you can probably find some creative ways you can reduce your spending, or cut back on the bills you currently have. It all adds up.
4. Set reasonable goals
Make sure your savings goals are realistic and also that you set a timeframe for them. When there is no time limit, there is less motivation for reaching your goal. Make your timeframe reasonable and then stick to it.
Now that you have all these ideas for saving money easily, you can begin saving. If you stick with it, you’ll reach your goals and you’ll see that saving doesn’t have to be that difficult after all.