Easiest Hacks For How To Save Money

I n this day and age, it is becoming increasingly expensive to live. With the prices of houses, utilities, and other basic needs constantly rising, it’s starting to become impossible to live life in a way other than paycheck to paycheck. How to save money when things are so dire? 

Well, we did some research. Here’s what you can do:

Budgeting and Planning

Caught up in our daily lives, we don’t realize that every single purchase adds up and will affect our future. This is why it is necessary to have a budget. 

The way to do this is to first see how much you usually spend. Being aware of this will allow you to become more aware of any unnecessary things you may be spending your money on.

After you become familiar with your spending habits and the things you usually end up buying,  you need to categorize them according to things you need such as groceries, rent, utilities, etc, and things you want, like branded shoes and clothing. This makes it easier for you to be able to see what expenses you can cut off and limit overspending. 

Whenever you feel like you want to buy something that is not a need, wait a couple of days and see if the urge is still as strong. Chances are, you’ll be less likely to buy it. This will help curb impulsive buys.

Calculate how much you spend monthly on necessary things and try to spend exactly that much or only a little more, while putting the rest in a savings account. 

There's also the 50/30/20 rule that you can apply in your daily life. This rule dictates that you spend 50% of your income on needs, 30% on wants, and put 20% of it in a savings account or towards unpaid debt. If 50% doesn’t cover your needs then you can try the 70/30/20 rule which has the same rules, just a different ratio.

Set Goals 

Setting goals is an effective way to keep you motivated since it gives you something tangible to work towards. Your plans may include marriage or owning a home, but we suggest you consider a retirement plan without which you may never be able to stop working. Or an emergency savings account that needs to be able to support you for at least three months in the case of an emergency in which you have no income or a huge expense. 

You can start small by setting goals like getting a new phone or something else you want but need to save up for. Then, when you meet your goal you will also gain confidence and motivation to continue reaching your goals. 

Use Apps

It's not easy to save money. It takes a lot of self control to be able to cut spending and put money into a savings account. There are many apps designed to monitor your spending through your credit card, and will show you your spending habits so it becomes impossible for you to ignore them. 

Through these apps and services, you can also automate your savings. It's a very simple way of putting money into your savings account if you feel unmotivated to do it when you get paid. 

We know it takes a lot of self discipline to save money since it’s not easy to simply cut down on your wants. But by monitoring how much you spend you can make a budget only for things you need while putting the rest in a savings account. Try the 50/30/20 rule in which you put down 50% of your income for your needs, 30% for wants, and 20% into savings. Set goals so that it becomes easier for you to know what you need to do for your future. It will also keep you motivated to continue saving when you see your goals being met.

Automating your savings is also very helpful since the apps do the deposits for you, bypassing the sinking feeling you experience when putting your money into savings. Other than that they will also ensure you’re aware of your spending habits, and help keep an eye on where you spend the most.

We hope you can incorporate these habits and now have a better idea of how to save money! Good luck!

• This post is tagged in:

• money
• finances
• planning
• saving
• budget