Have you found that your money seems to be trickling out of your bank account faster than you can replace it? You’re not alone. Most people have only one month of expenses saved in the event of an emergency, and studies have shown that this is simply not enough.
Here are some ways you can get your finances sorted and save money:
1. Track your spending
Before you do anything else, it’s a good idea to track where your money is going by taking a good, hard look at your monthly cash flow. This is your income minus expenditures like rent and bills. This also makes it easier when it’s time to set a budget and make your saving goals.
2. Set a budget
Budgets don’t have to be sad, and there are plenty of ways that you can manage your money better without constantly feeling deprived. Try the 50/30/20 rule, which allows you to still have fun and enjoy going out while meeting your money-saving goals. 50% of your income goes to necessities, 30% will go to wants, and 20% into your savings account.
3. Set goals
It’s hard to save when you don’t know exactly what you’re saving for. That’s why it’s a good idea to actually write your goals down, and most importantly, write down why those goals are important to you. It may be that you’d like a new car, to move to a bigger place, or save for your own property. Whatever it is, writing down your goal will make it much more likely that you’ll succeed.
4. Look for ways to cut back
Most of the time, we’re shocked when we figure out just how much we spend on things like groceries and subscriptions. If you tend to buy a lot of food, just to watch it slowly go bad in your fridge, a subscription like Hello Fresh may actually be a better option for you. At the very least, planning your meals before you go shopping is a great option. It’s also highly likely that you’re paying for many different subscriptions like gym memberships, Spotify, Netflix, and Amazon Prime. If there are any that you’re not using regularly, now’s the time to cancel and see if you’ll actually miss it.
5. Look for free stuff
There are so many ways you can find free things, from furniture for your apartment to entertainment at the weekend. Get outside and go for a walk, enjoy nature on a hike, or choose biking, kayaking, or rock climbing. Get on Craigslist or ask friends if you need something in particular- you’ll be surprised by just how many people are giving away things for free.