If you are struggling to save money for your holidays or for your mortgage, then this post will help you to save money.
1. Set goals.
Setting goals is a habit for people, and it should become a habit for you too. Studies have shown that just by having a goal for something it brings you closer to that goal versus not having any goal at all. This will help to encourage you as you move forward toward your financial goals.
Also, write down your financial goals, and put them in an obvious place so you see them often – such as on the refrigerator or next to a door you walk through frequently. Always try to meet the goal and walk towards it.
Making a budget for each spending on utility bills and grocery will help you to be under your budget. At this point, a traditional budget strategy may not be suited for you. But don’t miss blowing your budget, either.
- Crunch the numbers realistically: Set a reasonable amount aside for each of your expenses such as electricity bill, mortgage, water bill, insurance etc. Maybe you plan to eat for $25 a month by taking on some extreme measures. In reality, they’re probably not going to work. Don’t set yourself up for failure.
- Cutting out all extra activities and the fun:It’s important to give yourself some breathing room. You may have to limit it to 50 dollars a month if your budget is really tight.
The amount of breathing room will depend on your situation. But it should only be enough to keep you from blowing your budget. Set aside an appropriate, but modest, amount.
If you have any debt to be paid, then you need to workout your debt repayment strategy, allocate an amount toward each debt. Calculate how long it will take to eliminate each one, with your budget in place.
3. Slash excess spending.
Every so often, it’s a good idea to track your purchasing history to see where your money is going. An easy way to do this is by writing down on excel spreadsheet or simply using budget apps like Mint.com or BillGuard.com. After you see where your money is going, you can make adjustments where necessary. Do you really need to buy that new iPhone or Android device ever time a new one comes out? If it is working fine, then you might just use the same old phone.
4. Cut monthly bills.
Monthly expenses can bite us if we aren’t careful. Take a look at your needs—you may find you can save a lot there, particularly on your utility bills. For example, reduce the usage of electronic clothes dryer, use downlight in your house to reduce the electricity bill.
5. Switch up your grocery routine.
There is no doubt that spending in the grocery category of your budget can vary a TON from household to household. I’ve read about people who spend anywhere from $70 to $1,500 – for just two adults. One of the easiest ways to save money is to only shop when you have a list. Because when you’re without one, you typically end up making impulse buys and unplanned purchases – all things that cost money.
But the good news is, even if you have trouble spending in the grocery category, this is one place where you can save a ton! It just requires a little extra time, a few sacrifices, and some practice.