Sometimes it can feel like no matter how hard we try, it’s impossible to save money, and with inflation on the rise, it has been more challenging than ever! With so many competing priorities (the need to pay rent/mortgage, buy groceries, pay for childcare, create meaningful memories with loved ones), it’s no surprise that most Americans don’t have enough money in the bank to cover a $1,000 emergency.
Here’s the good news though; When it comes to saving money, you don’t have to do anything too drastic. Small acts really add up quickly and there are so many different steps you can take to achieve your savings goals. Here are 7 of the best ways to start saving money fast.
As always, if you want personalized help with saving money quickly, click here.
1. Understand your Financial Situation
It’s hard to save if you don’t know the basics about your financial situation. It’s a good idea to have a grasp of your income, your monthly expenses, the amount of debt you’re in, etc to find opportunities to save. Review your last few monthly bank statements to confirm all of this information. Many bank statements will actually categorize your information for you, which makes it easy.
You can also work with me to have a thorough financial situation assessment done for you to help you to create a clear plan for your money.
2. Create a Budget
Building a budget is a great way to save because it provides you with a roadmap for your money. When you create a budget, you give your money a purpose, which makes it easier to see where it is going and how much you can put away each month. Be sure to include a savings category in your budget based on your goals. Treating this category like another bill that must be paid each month will help you save faster.
Need help creating a budget? Click here to sign up for a personalized budget creation package.
3. Meal Planning and Grocery Shopping
Food is often the largest monthly household expense we have right after housing, and without a solid plan for this category, it can be very easy to go over budget with each trip to the grocery store.
To save money, take inventory of what food you already have at home so you can incorporate those ingredients into your meals for the week. Meal planning works wonders as well – Choose what you and your family will be eating for breakfast, lunch, and dinner for the week so you know exactly what you need to buy. Then, make a list BEFORE going to the store and make sure you stick to it.
If you really need help sticking to your list, consider online grocery shopping or grocery pickup. This way you avoid the temptation to pick up random items as you go through the store aisles.
4. Create Savings Goals
You will be much more motivated to save money if you know what you’re saving for. Start thinking about some of the things you want to accomplish, and then write them down. Be sure to create both short term (1-3 years out) and long-term goals (3+ years out). Next, estimate how much you’ll need to save for each goal, list them in order of priority, and determine how much you’ll need to put away monthly to reach each one within a specific timeframe.
5. Pay Off Debt
Paying off debt is one of the fastest ways to put money back into your pocket because you won’t be spending it making payments. Utilize the debt avalanche or debt snowball (recommended) method to get rid of your debt as soon as possible. If your budget is really tight and you don’t have enough wiggle room to make extra payments on your debt, consider starting a side hustle to help eliminate it faster.
6. Automate Your Savings
Make your life easier by automating your savings each month. This way, your money will go directly to your savings account without you having to lift a finger, and your balance will just continue to grow over time.
One of the best ways to do this is by setting up automatic transfers from your checking account to your savings account on a weekly or monthly basis. You can also work with your employer to have your paycheck split up into different savings accounts automatically. This is a great strategy because your money will go to its proper savings account before you even have a chance to spend it.
7. Minimize Eating Out
Who doesn’t like trying out new local restaurant spots on the weekends as a form of entertainment? We all do, but cutting down how much food you buy outside of the home is one of the quickest ways to save money, especially since restaurant food tends to be priced at a premium.
If you still want to enjoy a good meal out, try reducing your frequency each month, skipping out on drinks or dessert during outings, or splitting entrees. You can also try recreating your favorite meals at home as a fun date-night-in idea occasionally. Cooking more at home tends be cheaper than eating out, and your budget will stretch much further.
Conclusion
Saving money is so important because it provides you with a buffer in the event of an emergency like a layoff or sudden health scare. It also gives you peace of mind knowing that you can afford to make certain purchases without considerably impacting your overall financial situation. Create a budget to help you reach your savings goals faster. You’ll know exactly what you’re spending your money on, and you’ll have a clear monthly savings plan. Need help? Schedule a free consultation by clicking here.
You can do it! It just takes a little time and discipline. Start using these tips today end 2024 with a healthy savings account balance. Your future self will thank you for all your effort.
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