With a new year comes new goals and if one of your goals is to save more money this year, then you’ll want to read this post on ways to save more money this year.
- Create a Budget – This may seem obvious but many people don’t have a budget, nor do they know where their money is going. You can start by keeping a small notebook with you and writing down every time you spend money. Last year I challenged readers to a 10 day money tracking challenge. Write down every cent you spend, from groceries and gas, to tips and coffee. DON’T USE AN App on your phone. There is something about physically writing it down that makes you more aware and even WANT to spend less! Then once you know where your money is going, make your budget. Do you need to cut back somewhere? You can find more tips on creating a budget here and even a free worksheet to help you track.
- Trim Monthly Expenses – Now that you know where your money is going, it’s time to trim the expenses. How much you need to trim will determine how extreme you need to get. But the more extreme, the more you save! Cancel any subscriptions you are no longer using or that you don’t benefit from. Do you have a gym membership but you only go once a month? Is it worth the money you are spending? Call the water and electric companies and get on a budget plan. This is where they average out your yearly expensed and give you a monthly payment plan. So instead of paying $300 for Electric in July because you’re running the A/C a ton, they will average the entire year and you may only pay $150 each month. This helps your budget in the long run. Call cable companies, insurance and talk to a rep about how you can lower your bill. Cancel cable all together and use and HD antenna for local HD channels.
- Spending Freeze – Pick a month or a couple weeks even and go on a spending freeze. Don’t buy anything new other than basic groceries, gas etc. Try to eat what you have in the pantry and freezer. See how much you can save buy not buying new items or going out to eat.
- Spend Less money on Food – The obvious is not stopping for coffee, eating out and making your lunch for work or school. Download the Favado app and you can make your grocery list based on what is on sale and find coupons. When you stock up on sale items and use coupons, you aren’t paying full price when you NEED the item because you already have it at home for a better price. Don’t forget the Online Class is 50% off right now.
- Know Best Month to Buy High Ticket Items – There are months of the year that certain items are better prices. For example January and February is a good time to get gym equipment or memberships. If you need new carpet it might be best to wait till May. Check out the infographic above for more details.