Saving isn’t as easy as it may seem — especially if you’re living on a tight budget. If you’ve tried everything, but can’t seem to be able to see anything aside, follow these tips.
Focus on your debt first
It can be extremely difficult to set money aside if you’ve struggling to pay off all of your debts. But that’s okay! Better for you to focus on paying off your debt than to try to set money aside for now. After all, the faster you pay off your credit cards and other loans, the least you’ll have to pay in the long run. The money you save in interest alone is likely enough of an amount to set aside for savings!
Try to reduce your expenses
You’d be surprised just how much you pay in expenses each month — and just how much you could save by reducing them! You might think it’s impossible to reduce them, but there’s always a way. If you have an unlimited data phone plan, but find yourself using less than 5Gbs per month, consider getting a limited data plan at a lower price. Or even changing your cellphone provider!
You could also go through your bank statements and cancel any memberships you don’t get full use of. For example, if you’ve paid 60$ for a gym membership, but have only gone to the gym twice in the past month, pay the daily 20$ fee instead!
When it comes to grocery expenses, consider looking for the latest deals or coupons before making any purchases. You’d be surprised at how many deals you could get just by switching brands from time to time. It can also be as simple as packing your own lunch rather than ordering takeout! The options for reducing your expenses are limitless.
However, if you’ve tried as hard as you can but are still struggling to make ends meet, talk to your creditors about lowering their costs.
Eliminate your bad habits
There’s more to spending than simply looking at your necessary fixed and variable expenses for the month. You have to look at all of your other expenses too! This includes outings, clothing, transportation, smoking, and more. If you find yourself spending an exorbitant amount of money on clothing or smoking, eliminate those spending habits. If you can’t eliminate them, at least try to reduce them. Set yourself a spending limit — and absolutely stop using your credit cards. If you can’t pay for it with the cash you already have, then don’t buy it.
Don’t spend any money for at least one day per week
If you’re used to spending money every day, whether it’s for a morning coffee, takeout, or other purchases, you could benefit from a “no spend” day. Choose one day of the week in which you won’t spend any money at all. Think about it — if you tend to spend about 20$ per day on coffee and food, you’ll be saving 80$ per month! That’s money that could easily go towards your debts or savings.
When it comes to online shopping, don’t be fooled by “by buy now, pay later” deals! These are ways for stores to ensure that they’ll have more customers buying their products. But if you give in too often, you’ll find yourself having trouble paying off your purchases.
Energy savings
You could save a ton of money just by making small and simple changes to your electricity consumption. The most helpful way to reduce your electricity costs is to change your thermostat. If you still have one of those super old thermostats, it’s time to make the change to a programmable one. Programmable thermostats, like Nest and Honeywell are super affordable and can help you save up to 10% on energy consumption costs! If you’re happy with your current thermostat, consider lowering the temperature or turning off the thermostat when you’re not home.
Another way to reduce your energy consumption is by switching out the types of bulbs that you’re using — especially if you’re still using incandescent bulbs. There are many different choices on the market these days. Notably, LED lights have become more popular for their efficiency as well as their lifespan. Not only will you be saving on energy costs, but you’ll be saving on bulbs in the long run.
Create a budget
Budgets are immensely helpful when it comes to having a successful savings plan. A budget will allow you to fully track your income as well as your expenses. As boring as budgeting may seem, it’s something you’ll never want to stop doing once you start.
Not only does creating a budget help you pay off your debts, but it helps you save and see where you can make some tweaks to your spending. It’ll also greatly remove a heavy weight off your shoulders, leading to reduced stress and anxiety as well as better sleep.
Don’t know how to even begin?
Allevia’s got your back. With Allevia’s online budgeting tool, you can set your financial objectives, track all of your income and spending, and follow your budget. What’s more is that Allevia will analyze your financial situation and come up with personalized advice so that you could reach your goals.
