With the ever-increasing cost of living, we understand that it’s hard to save money and even harder to keep it over extended periods. However, the more you can save, the better position you’ll be in for your future and your present, and regardless of how much, the extra cash you save can make a positive difference in your life. The most valuable aspect of saving money is that you get to choose when and where you’re going to direct or invest this money into something that matters to you.
Nevertheless, you might still think that saving money is hard, or you just don’t know where to begin with your cost-effective journey. For that reason, there are some simple steps you can take that could make all the difference in the world, whether you succeed or fail in reaching your money-saving financial goals.
Make It Clear How Much Money You Want To Save
The best way to start saving money is to set a goal for how much you want to keep at the end of the year, month, or following few months. From there, you can establish monthly or annual goals to achieve as you get closer to that final figure.
With that said, and to make things easier for yourself, you can start some pre-made saving challenges that can help you reach your goal. For instance, if you want to save a certain amount of money over six months, you can go with the 6 month savings challenge and stick to it. Challenges are easier to stick to because you can track your progress weekly, ensuring you don’t miss an input by crossing out the completed fields.
On the other hand, saving money on a whim won’t end up doing you any favors in the long term since there’s no way to figure out how much money has to be saved on a weekly or monthly basis and track your progress or if you don’t have a precise quantity or goal in mind.
Cut Out Non-Essential Costs
Even though many of us like to splurge every once in a while, we can all find places in our lives where we can cut back on unneeded purchases. This could mean anything from stopping by your local Starbucks every day to limiting your internet expenditures, lowering your utility bills, etc.
Sell The Stuff You Don’t Need Anymore
Have some spare clothes that you’ve wanted to get rid of? Or you might have an old wedding gown or prom dress that is still in fantastic shape? In today’s day and age, many apps and websites enable you to sell a wide range of items. Of course, it takes a bit more time and effort than simply dumping off items to Goodwill or any other local thrift store, but it will for sure pay off in the end.
Look For A Part-Time Job
Finding a side hustle for extra cash if you have some free time during the week could be a nice choice for you. Whether you’re freelancing or working an additional shift as a waiter, use the money you earn towards your savings goal.
Make Use Of Online Financial Tools
It can be difficult to stick to your savings target at first, therefore, finance apps can let you see how far you’ve come and how much time you have left till the end of your saving process. These apps also bring all of your accounts together so you can see your entire financial picture.
Determine Where The New Funds Should Be Allocated
For this part of the money-saving process, you should find a beneficial and safe place to store your additional funds as you accumulate them. As the money rests, you’ll want it to earn interest. These are some of the options you might want to consider when storing your money:
Savings Account
If you store your funds in a savings account, you will receive interest on it, however, it will not be at a particularly high rate. However, you will still be able to move and touch the money if necessary.
CD Or Deposit Certificate
When you put money into a CD, you won’t be able to withdraw it until the time specified has passed. That could be a terrific motive to not touch anything, however, it could become a hurdle in case of an emergency.
An Account With A Money Market Fund
Money market accounts offer competitive interest rates, but they may have restrictions on how much money must be deposited into the account at the start and how often and how much the account user can withdraw.
Final Thoughts
Saving money is not the easiest thing to do, especially when you consider everything that you have to cut back on or eliminate. But with some research, a little bit of creativity, and hopefully, trying out a couple of these ideas, you can come up with an effective plan to save money without having to make too many sacrifices.
