Saving is when your income outdoes your spending. Easy to do right?
Yeah right. Even when we're not avid spenders and think we're being smart about our money, things can go terribly wrong. We may not be saving like we should, or in worse matters, spending too much and throwing ourselves into a spiraling debt.
Here are 7 steps you can take to save money, even when things seem out of control.
1) Track your budget
You may be spending money every month on something you didn't know you had. Remember that $30/mo. service fee you signed up for? You don't need that anymore. Do you even read that magazine you just spent thirty bucks for the subscription on?
If you track your budget, you may find you can save a lot of money by just cutting out old and odd expenses. I use Mint.com to handle all that. It's a free, and an incredibly easy tool to help anyone manage their budget. Track it for a few months and you could save a bunch of money almost effortlessly. I saved over $60 a month when I did it myself.
2) Compare card and bank rates
Could you be spending less on credit card fees? What about Internet banking transfers? Your bank's policies may have changed since you've signed up, or a better bank may have come into town. Re-research your options, and switch banks if you find it could save you anything.
Again, Mint.com can help you with this. Mint offers the rates and regulations for only the bigger banks however, so be sure to still check into your community banks.
Always be looking out for a lower interest rate on your credit cards. If you find a cheap one, switch your debt over to that. You could be paying $10 a month rather than $30.
3) Create a set budget
Make a budget for rent, groceries, shopping, your kids, taxes, etc. Get it down on paper. If you break the budget once, learn from your mistakes. You can spend less shopping, stop buying brand name at the grocery store, and let your kids play with their old toys for awhile.
Find out how much it costs to live comfortably. Yes, you can leave a few extra bucks out for some luxury. Chances are, you'll still have money left over from your prospected income. Don't spend that willy-nilly. Open up a high interest savings account, and save!
4) Be healthier, live greener
You can save a lot by doing good. Start to live a healthier life. By that I don't mean go and buy a $30/mo. gym membership. Drink water instead of soda, and preoccupy your time with a walk outside, not a walk around the mall. Eat healthier meals and cook more. You'll save on grocery bills. You'll save on a lot of things.
You can save money on utility bills by taking shorter showers, lowering the heat, and doing basic maintenance like cleaning your air filters. Reuse containers so you don't have to buy, or waste, more. Buy a water bottle and keep it full, not a bottled water.
5) Find your short term cash needs
If a holiday is coming up, you're likely to spend more this next month on gifts and food. That's fine, just plan ahead for it. How much do you have, how much can you spend? Do you have to sacrifice something else this month to get things done?
Be aware of birthdays, holidays, weddings, and other events. You may also want to think about the next few years. Is somebody going to college, having a baby, or any other life-changing and expensive happenings? Always think of these things!
6) Create different savings
Have a savings for emergency, for school, and for basic savings. Spend the savings appropriately. You don't want to spend all your college savings for yourself or your kids on some emergency car repairs. Determine how much you need for each and set them into your budget.
7) Stay focused
Keep track of your budget closely, and change it only when necessary. Don't get bored and go back to your old habits!