Last Updated on August 20, 2022
Contents
Learn How To Save Money Every Month
Saving money is not easy. You have to think about covering all your expenses first (including taxes), and then try and save what is left. Also, if you have a big family and kids, this could be even more difficult for you. Despite that, saving money is essential in every person’s life. It could help to cover emergencies, manage life plans, and buy critical things. The three main reasons to save money every month are:
- Freedom
- Financial security
- Taking calculated risks
Many people may wonder how to save money every month. There are many ways to do it and be successful. In this article, you will find out some of them and how to implement them correctly. You could also take a risk and invest your money for long-time goals. No matter what, you need to start acting right now if you want to save money every month.
Plan And Track Your Money
First, you need to check where you stand with your finances since there are people who can’t save money. Even if you do not earn that much money per month, do not be discouraged. With the proper planning, you can save. Even a dollar could help you move forward toward your goals.
When you have checked your monthly income, it is time to sit and do some budget planning. To make the best plan for your needs, follow some easy steps:
- Calculate monthly income
- Set realistic goals for saving
- Make a plan for how much you are going to put aside for your goals
- Adjust your budget plan depending on your monthly needs, but keep saving
- Review the budget at the end of every month and check if you stayed on track
Be realistic with your goals. Exceeding yourself and not succeeding could only demotivate you. In the end, it would lead you to fail. So, set realistic goals that match your monthly income. Also, when you set the timing of the plans, be careful and set a timeline that makes sense. Anything shorter than that could also demotivate you.
Tracking your money helps you understand if you need to change your spending patterns. It helps to improve your budget and spending habits with time. It also allows you to make better financial decisions with time. Overall, tracking your spending is necessary, and makes it easier to save and invest. Tracking your expenses allows you to:
- Meet financial goals
- Have better financial control
- Identify problems and establish better financial security
- Keep everything organized and improve saving decisions
Save Money By Making Changes In Your Life
The best way to save money every month is to make changes in your everyday life. It will eventually lead you to:
- Reduce your bills
- Get rid of any debt you have
- Change spending habits, like clothes and food
Reduce your bills
Your monthly bills can eat a significant part of your budget. So, it is understandable that you would want to reduce them. First, you need to think about what bills you have to pay regularly. Most people’s monthly household bills include:
- Electricity and gas
- Phone and internet
- Tax bills
- Water
You need to check if the providers of these bills have the best service for you. Compare them with other providers to see if they offer the best prices in your local community. If they have the prices that suit your budget, you could look for another way to lower your bills.
For example, you could install additional instruments (like water or electricity meters) to control the spending and use of electricity and water. Also, determine if you need a home phone or whether you could survive with just your mobile.
Another way to control the spending on your bills and stay on track is to use the half payment method. This method directs you to put aside half of the money from one paycheck. Then, you can set aside the other half for your bills, after your second paycheck. This method will ensure that you won’t fall behind with paying your bills, saving you money on late fees.
Get rid of any debt
Getting rid of any debt you have is essential to saving money every month. If you get rid of debt, you will be able to save even more money. Debt can affect your day-to-day life since they limit some possibilities. To get rid of your debt, you could use the debt snowball method. It intends for you to pay your debts smallest to largest so that you are able to stay motivated.
If you focus on paying off any debt you have, eventually it will help you fix your credit score.
Change spending habits
Changing some of your spending habits is essential to saving money every month. Work on managing any impulse buying. For example, if you can’t seem to control your spending on food or clothes, you can use the 30-day rule.
You can also limit your trips to the store each week. That way you will save money on shopping. Also, some apps (like Ibotta or Target Circle) could help you control spending and buy things for less money. For example, you can use coupons to save money like this:
Steps | Price |
Shop for clothes | $55 |
Apply coupon of $10 off a $50 purchase | -$10 |
Pay | $45 |
Save | $10 |
Use The 50-30-20 Method To Save Money
The 50-30-20 method is an excellent way to save money every month. You can categorize your spending and divide it into what you need, what you want, and what you save. For example, you can spend 50% of your monthly income on rent and bills. Then the 30% would go for non-essentials, like some clothing and accessories. Finally, you can put aside 20% of your income for your savings and emergencies.
Use The 30-Day Rule To Save Money
You can save money every month by using the 30-day rule. This rule helps you manage your finances and better control your spending.
The 30-day rule helps you to be sure about a purchase before you make it. For example, anytime you are in a store and have an impulse to buy an item you don’t need, pause on the purchase. The same goes for online shopping. If you want to buy something online, step away from the computer. Wait 30 days to consider if you need the item.
Many people use this method to control their impulsive shopping habits. What this rule does is:
- Separate essential and non-essential buying.
- Save you money.
If you forgot about the item you wanted in the 30 days or decided it was not worth it, then you successfully used the 30-day rule and saved money.
Use Budgeting Apps To Save Money
If you can’t seem to save money on your own, you can always try to do it with the help of some budgeting apps. There are different apps with unique features for you to choose from based on your needs. They are:
Mint | YNAB | Mvelopes | PocketGuard | The GoodBudget |
Free | Paid app | Paid app | Paid App | Free and paid version |
Sync bank accounts | 34-day free trial | 30-day free trial | Tips on how to spend wisely | Website and app option |
Showing your credit score | App and website option | Different categories | Charts on every spending | Digital envelopes concept |
Tips on how to save money | Customize according to your needs | App for envelopes | Website or app option | Scheduling option |
Frequently Asked Questions (FAQ)
How can I save money faster every month?
If you want to save money fast, try to put the tips we recommended above in place. Set realistic goals according to your monthly income, and cut spending on various things. The best thing is to change your lifestyle and focus your spending only on the necessary items. Everything else could go into your savings account.
How can I save money on food every month?
To reduce your spending on food every month, figure out which stores in your neighborhood have better prices. Make sure to compare prices and pick the store that has a lot of discounts and coupons for you to use.
Also, make a weekly meal plan according to the ingredients that are on sale that week. Avoid eating out since it can cost you a lot of money. Instead, you could learn to cook and prepare your lunch for work from home.
How can I save money on clothes every month?
There are various ways for you to save money on clothes every month. If you tend to buy clothes often, you could also sell your old clothes. Then you could use that money to renovate your closet.
You can also check for sales in different stores and use coupons. If you have any friend who works in a clothing store, you can ask them for tips on saving money on clothes. Ultimately the goal is to not overspend and buy only the pieces you need.
How can I save money on rent every month?
If you want to save on rent, you could look for another place that costs less money. Think about your needs and see if you can switch to a smaller apartment. If that does not work for you, you can get a roommate or even two. That way, you can split every cost. It could be a perfect way to save a significant amount of money.
You can always negotiate with the landlord to lower your rent. If you plan on switching apartments, look for something out of the city since it could cost less.
How can I save money on bills every month?
To save money on your bills, you could put in place some of these tips:
- Find providers that have better prices.
- Install LED bulbs and turn off lights that you do not use to lower your electric bill.
- Install a water meter for your water bill and pay only for the used water.
- You can switch to a family plan for your phone and internet bill or lower your internet speed.
How can I control my spending better and break bad habits?
You can use the digital envelope method to better control your spending. You can organize your spending by using envelopes to save. For example, you can choose a bank and store your money online. Then you can put money in them every month and track your spending. That will also help you break bad spending habits.