Saving on a Budget
If you find that every month you are short on cash, you may think that there is no way you can save. However, get this thought out of your mind because it is possible to save and you have to even when your money is limited.
Here are some ways that you can save when you are on a budget.
The first thing that you need to do is to only buy things once you have shopped around.
You need to commit yourself to comparison shopping and to look for coupons and sales online, at your grocery store and in the newspaper. Then you should only buy at the lowest price that you can find.
The trick here though is to the take difference of the amount that you paid and the amount you would usually pay and put that money into your savings. This amount may seem small but this will add up.
Bank your Change
This is an old fashioned idea, but it works. Take all your loose change out of your pocket, purse and wherever you find it and save it in a jar.
Then find ways to add to your jar. When you draw from the ATM for instance put 10% in your jar.
Every month or quarter count the money you have collected and add it to your savings.
Pay Yourself First
Generally you will wait for all the bills to be paid, see what is left over and save that, but actually you should pay yourself first by creating a savings goal each month. Then pay your fixed expenses and then budget for the rest.
You should think about putting most of your paycheck into your savings and make weekly transfers to cover your expenses. You are then able to keep track and decide where the excess should go.
It can be hard to just save for savings sake, so have clear reasons as to why you are saving.
You can save for the event of an emergency, to have a holiday or any other reason.
If you don’t know why you are saving then it can be very difficult to save.
Make it Automatic
It is easier to save when you don’t have to rely on yourself to make the transactions. You can make savings automatic with online banking and set aside each month that will automatically get transferred to your savings account.
Don’t Make Debt
If you don’t have money at the end of the month to save, then you shouldn’t be putting more on credit cards. Your first goal should be to pay down any debt that you have so you can get rid of it. This allows you to work on a cash basis not a debt basis.
To avoid living on your credit cards, you should eliminate non-essentials and focus on eliminating credit card debt. If extra cash is going on credit cards then you wont be able to save.
Make a Budget
It can be hard to set a budget, but it is necessary and will teach you discipline.
Determine your fixed expenses then determine your needs for other expenses like food, entertainment, clothing, gas etc.
Decide the number of weekly expenses and try stay in the budget.