◾How does it feel being broke, yet you’re employed?
◾How low can you go to minimize your budget for the betterment of tomorrow?
◾What comes first in your mind, what do you prioritize when you first receive income?
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You could be permanently employed with monthly earnings but with no single coin in your savings account. Many people find it difficult on how to start saving, while in some cases, others have gone to an extent of having a savings account with zero balance.
After a thorough research and data collection on finance matters, various ways to start saving money were realized that would probably help you get out of ‘SPEND IT ALL’ zone and remind you to save for future activities.
1. Try The 50-30-20 Rule.
A popular money saving hack, but one you may not have heard of is the 50/30/20 rule.
This means 50% of your take home pay goes on essentials, such as bills and food shopping, 30% goes towards treating yourself and going out, while 20% goes to the future you – AKA investing and savings for a rainy day.
This split may not work for everyone, so feel free to change the percentages to suit your financial needs
2. Track Your Expenses.
This one kind of goes without saying, but keeping track of your expenses is crucial to living within your budget.
You can do this using a (free) budgeting app to monitor all your accounts in one place and manage your spending.
Even simpler than that, you could write down your expenses at the end of the day, as this will help you understand exactly where your money is going.
The more conscious you are of what you’re spending, the less likely you are to overspend or buy on impulse.
3. Use Public Transport.
You don’t need us to tell you that the cost of the fuel at the moment is extortionate, which is why using public transport could be a great way to save money. Granted, it might not be the way to go in all places, but if your city has a good public transport system, we highly recommend that you make full use of it! Public transportation often sells monthly or weekly passes at a discount too.
Alternatively, where possible, try to seek out any opportunity to stretch your legs and get walking. While it’s an easy way to get those 10,000 steps a day in, carrying your shopping bags back will definitely get your heart rate up – who needs dumbbells, eh?
4. Split Subscriptions.
If you use paid subscription services like Netflix, Amazon Prime and Spotify, you could save money by splitting the cost with friends and family.
Most offer a number of users under each subscriber.
5. Eliminate Your Debt.
If you’re trying to save money through budgeting but still carrying a large debt burden, start with your debt. Not convinced? Add up how much you spend servicing your debt each month, and you’ll quickly see. Once you’re free from paying interest on your debt, that money can easily be put into savings. A personal line of credit is just one option for consolidating debt so you can better pay it off.
6. Set Savings Goals.
One of the best ways to save money is by visualizing what you are saving for. If you need motivation, set saving targets along with a timeline to make it easier to save. Want to buy a house in three years with a 20% down payment? Now you have a target and know what you will need to save each month to achieve your goal. Use Regions’ savings calculators to meet your goal!
7. Take a Staycation.
Though the term may be trendy, the thought behind it is solid: Instead of dropping several thousand on airline tickets overseas, look in your own backyard for fun vacations close to home. If you can’t drive the distance, look for cheap flights in your region.
8. Spend to Save.
Let’s face it, utility costs seldom go down over time, so take charge now and weatherize your home. Call your utility company and ask for an energy audit or find a certified contractor who can give you a whole-home energy efficiency review.
This will range from easy improvements like sealing windows and doors all the way to installing new insulation, siding or Energy Star high-efficiency appliances and products—and even solar panels. You could save thousands in utility costs over time.
9. Utility Savings.
Lowering the thermostat on your water heater by 10°F can save you between 3% and 5% in energy costs. And installing an on-demand or tankless water heater can deliver up to 34% savings compared with a standard storage tank water heater.
10. Create an Interest-Bearing Account.
For most of us, keeping your savings separate from your checking account helps reduce the tendency to borrow from savings from time to time. If your goals are more long-term, consider products with higher yield rates like a CD or money market account for even better savings.
11. Annualize Your Spending.
Do you pay $20 a week for snacks at the vending machine at your office? That’s $1,000 you’re removing from your budget for soda and snacks each year. Suddenly, that habit adds up to a substantial sum.
As you implement these tips into your financial life, remember that where you save your money is important too. Regularly move the money you save out of your checking account into your savings account, where you’ll be less likely to touch it before you reach your goals.
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Those are some of the ways that will help kick you out of your ‘spend-all’ zone and direct you to better ways to start saving from as low as you can.
Always remember saving requires commitment and discipline.
Be dedicated and save from little to more!
MONEY IN THE BANK. 