SAVING 101: HOW TO SAVE MONEY IN 2023
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LAST UPDATED ON: 01/09/2024
Are you currently seeking methods to save money and cut down on expenses?
Saving money can be challenging at first. Most people think saving money is easy, which is not always true.
Here you will find the easiest ways to start saving money or increase your savings.
1. BE SPECIFIC & SET SAVING GOALS
The first thing you should do is be specific and set attainable saving goals. These goals should be realistic and relevant to your financial income.
Below are steps you can take to start arranging your saving goals:
Create a Budget (Preferably, the 50/30/20 Rule is one of the easiest ways to start a budget.)
Pay Yourself First Each Time You Get Paid - Dedicate a Percentage of Your Income to Your Savings (Preferably 10% or higher, but if that is not doable - do what you can. Remember to be realistic!)
Track Your Saving Progress
2. AUTOMATE
Automating your savings and auto-paying your bills will save you time and money. Automate your savings by setting up a regular transfer of a specific amount to your savings account.
3. STOP WASTING MONEY ON WHAT YOU DON'T NEED
Stop wasting money on nonsense.
We're all guilty of going into a store and picking up things we don't need or want, but we buy them anyway. If you feel like purchasing something unnecessary, give yourself 24 hours to see if you still want it.
4. INCREASE YOUR NUMBER OF INCOME STREAMS
Nowadays, it isn't easy to rely on a single income. Everyone should have multiple income streams, especially after 2020.
When looking for new income streams, focus on establishing one at a time. Having multiple income streams is the fastest way to grow your savings. Below are a few ways to increase the number of income streams that you have:
Turn Your Hobby into a Profit
Start a Blog
Start a YouTube Channel
Get Another Job
Do Freelance Work
Start an Amazon Store Selling Products
Buy Stocks (Do Your Research Before Purchasing Stocks)
Babysit
5. ASK FOR A RAISE
Asking for a raise can potentially help you save money—the reason why the more you make, the more you will be able to save.
You can save the extra money automatically or invest in a 401k if your job offers it. 401k is a great way to save for retirement if your company matches your contributions.
6. CHEAPER ALTERNATIVES
When you are in a saving phase, it's always best to compare prices and look for cheaper alternatives. (This doesn't mean taking the more inexpensive way out all the time. But it does mean if you can get the same service or something for cheaper, why not?)
7. DEBT MANAGEMENT
When trying to save money, it's best to avoid new debt. Instead, pay off any lingering debt, especially debt that accrues interest.
I suggest dedicating a small percentage to paying off your debt if you have any outstanding debt obligations.
Find a debt repayment method that suits your financial situation. Then try to consistently pay more than the minimum when possible.
To Summarize:
1. BE SPECIFIC & SET SAVING GOALS
2. AUTOMATE
3. STOP WASTING MONEY ON WHAT YOU DON'T NEED
4. INCREASE YOUR NUMBER OF INCOME STREAMS
5. ASK FOR A RAISE
6. CHEAPER ALTERNATIVES
7. DEBT MANAGEMENT
IN CONCLUSION
Starting a savings journey can be a challenging task, especially for those who are just starting out.
However, realistic savings goals and having routines will help you along the way.
