Save Money Fast Each Month: 3 Simple Tips
Updated: Mar 13
Over many years, I found that there are certain habits that served very well when it comes to saving money. Let's jump right and find out what those are.
1) Watch your spending and note down your daily spending habits for a week
What you need for this step:
10 minutes of your time
A notepad or a digital journal
On a Monday morning, get up and make a decision to note your spending for a week. Journaling is a good habit which I will discuss in detail in another blog post. Alright, you start taking notes, whatever suits you - it might a simple paper and a pen or a smartphone app for noting down your spending.
Start being conscious and write down any spending, for example, a lunch outside at a restaurant, a candy bar at a gas station, a simple lottery ticket while you are on your way home, etc...
At the end of the week, review your notes and ask these questions:
Can I stop that spending and still live with it? (example, pack lunch instead of eating outside every day)
Is that spending reasonable or was it an impulse shopping? (Do I need another show if I already have 10 or more shoes that in good condition)
Check the item that you consider unnecessary spending. Note it as a goal for next week in your journal. Every day, after you wake up, go through your goal and note down anything little that you have tried to save money. Once, this reviewing goal and watching of how you stay on track really helps in your progress towards disciplined spending. Try it for a month and see the change in spending habits (better if you note down every month's total savings - you will see an improvement for sure!). You heard of that saying, " Little things add up". Small changes lead to big achievement in the longs run!
2) Go through your existing bills
Make a list of all that you pay for each month. As you go through, ask these questions.
Do I really use that service enough to worth that monthly premium?
Go through your credit card statement and see what are purchases for that month. That Netflix monthly is not worth it if you have little time to watch any. You might be having a change in a situation where you could update your service to save some money. For instance, car insurance, maybe it is time to convert that low deductible and have a higher deductible because your vehicle now too old to need that much low deductible.
Do I have a spending that is unused and has recurring payment?
I had a recurring payment on one o those Nintendo Switch membership that I did not even notice until after 2 years! My kids were playing on a PS4 and not even using the Nintendo account anymore! Another example is when you set some service for auto payment and forgot about it completely!
Recheck every bill and you will find many are simply recurring every month.
3) Clean it up and get the savings going
You might be having a lot of items at your home which you no longer use. Set up a garage sale or sell those items online for some extra money. Look around your home - you might be losing money without your knowledge. Check your windows for leaks, tune-up your AC, or just set that thermostat at the right temperature. These things might seem out of reality for some but these steps save your hundreds over the year!
Changing habits are tough but journaling and being conscious of your spending is the honest way to save money. Habit takes over and your efforts prove fruitful. By the way, check the junk vs healthy food in your home. Most healthy foods like fruits and homemade food cost less than snacks.
Wishing you more savings and worthy spending!