Trouble saving money? Let us help you.
You’ve likely heard people say, “Just get a better job!”
Many people on the internet say that to people who have trouble saving. As we all know, it’s not that easy.
No matter your income, saving is hard.
The money in your paycheck and the money in your bank account is a constant temptation.
Spending your money is easy. If you’re not careful, the desire to spend your money can overtake your long term goals.
If you’re having trouble finding money to save, read on.
Start a budget if you have trouble saving money
A budget is the first step to saving.
Using a budget forces you to ask the question, “What’s the most important use of this money?” For most of us, buying the latest gadget isn’t the most important use of our money.
By keeping a budget, you put yourself far ahead of the pack.Only one in three households keep a detailed budget Click To Tweet
Only one in three households keep a detailed budget. If you have trouble saving, a budget is the first step to improving your saving habits.
Bonus: If you’re married, having regular budgeting dates with your spouse can strengthen your relationship.
Cut what you don’t need
Once you have a budget, you begin to learn where your money is spent.
A common expense is cable television and internet. According to Fortune, the average cable bill is $103.
Can you live without cable television and only use Netflix or HBONow? You may be able to find an internet only plan for between $30-60.
If you add Netflix or HBO on top of that, your monthly cost will range between $40-70.
If you continue studying your budget, you may find some bad habits. Starbucks? McDonald’s?
If you find yourself buying a morning coffee and eating out multiple times per week, you can reduce your spending. Make coffee at home and start planning your meals.
According to USA Today, people who regularly buy coffee spend $1,092 every year.People who regularly buy coffee spend $1,092 every year. Click To Tweet
That works out to $21 per week or $91 per month. If you only contributed $91 per month to your 401k, your retirement account would be worth almost $17,000 in 10 years.
Invest in yourself to increase your income
After you start your budget and cut the expenses you don’t need, invest in yourself.
The obvious answer is education.
However, education doesn’t always cost money.
With free education sites like Khan Academy, you can improve yourself in many ways. Khan Academy covers subjects from math to science and history to economics.
Much like you can budget your money, you can budget your time. Read more books. Read books by Dave Ramsey and Seth Godin.
Change your daily internet browsing habits. Instead of scrolling through Facebook, take time to read Motley Fool or subscribe to /r/personalfinance.
Don’t be afraid of your finances. If your current situation doesn’t allow you to save as much as you want, don’t fret. Net worth takes years to grow.
If you start now and make the right changes moving forward, you’ll consistently grow your net worth into something you never thought imaginable.
- No matter your income, saving is hard.
- Start a budget. Use a tool like YNAB.
- Look at your cable or coffee spending and ask yourself, “Can I reduce spending here?”
- Use a site like Khan Academy to improve yourself with free education.
- Change your daily reading habits to include forums like /r/personalfinance on Reddit.
Have you ever had trouble saving money? How did you get your saving habits on the right track? Share your advice in the comments section below.