Save Money Today
There are a myriad of ways to save money. I am going to show you 8 of the tips that you can use to save the most money in 2017 so that you can save up for what you really want. Sometimes the hardest thing in life can be to save money because it is so easy to spend once you are presented with a check.
Record Every Expense Right Away
The first step toward saving money is to record every purchase that you make. You want to keep a detailed list of all of your expenses which include every snack you buy and drink you purchase at lunch. You want to account for every penny spent and every penny made.
This can be done by making an excel spreadsheet or a notepad document that includes all of your weekly and monthly purchases. Daily expenses are added at the end of each day to determine how you are doing in contrast with your budget.
An online banking system can help with this and so can keeping track of your credit card statements. You may even be able to filter statements so you can get a more detailed breakdown of charges and money spent. The last thing that you want to do is fall into debt.
Making A Strict Budget
Make a budget that is realistic for how much money you make every month and stick to it. You first want to determine the amount of money you make each month so you can draft a budget.
Making a budget can prevent overspending and overdraft fees which can be damaging to your credit and credibility with your bank. Factor in weekly, monthly, and yearly expenses into your budget such as gas, electric, and Netflix.
Make a Plan To Save More Money
You want to devote yourself toward saving money. Work toward putting away 15 to 20% of your income into a savings account. If your expenses are so high that you cannot save, work on cutting back expenses so you can save a little at at time.
Identify the essentials and what you don’t need so you can make necessary cuts. Saving money can help you save for emergencies and surprise cat issues or house problems.
Choose An Item or Goal To Save For
Most people can save more money once they establish what they need or want to save money for. This can be anything form a house to a gaming system. You want to make short term and long term goals so you can realistically set yourself up for success.
Determine What Your Priorities Are
After you have set short term and long term goals, now you can decide what your priorities are and eliminate non essential items. If you know that you have to fix up your house or replace your car in the not so distance future, prioritize saving up for this.
Taking The Right Route
For the below short term options it is important to know that high yield savings account will have a higher interest rate while the bank money market will have a variable interest rate. Certificate of deposits have a specific interest rate over a set duration of time.
For the below long term options it is important to know that stocks or mutual funds are not insured through the FDIC and are subject to loss of principal investment.
Consider The Following For Short Term Goals:
- Regular savings account
- High yield savings account
- Bank money market savings account
- A CD or certificate of deposit
Consider The Following For Long Term Goals:
- FDIC insured individual retirement accounts
- Stocks or mutual funds
Making Your Saving Automatic
Almost every bank available will offer an automated transfer between your savings account and checking account. Your are able to choose how and when to transfer money which is convenient and accessible. This is a great way to make money so you are not tempted to spend.
Watch Your Money Grow
Check your progress weekly and monthly to see where you are at. Stick to your strict budget and savings plan. This will help you identify and fix any problems that arise.