Saving up money while being financially unstable or even broke might seem impossible. But no matter the situation, you are able to take control of it. The first step in saving money is probably the hardest, but I promise you from there on it will only get easier.
Just to show you and myself how easy it actually is to save money I made this blog post. I hope this will help some of you out.
Why do you want to save up money?
Saving money without having a goal attached to it can be pointless. So I think it’s good to ask yourself: “Why do I want to save money?”. Is it for a new car, a debt you need to pay off or maybe you want to go on a vacation? Or is it for your emergency fund?
Having something to save up for makes it easier to keep on saving. No matter if it is tangible or not, there is something to look forward to. All the work you put into accumulating money overtime will be worth it when reaching your goal.
Be realistic with your goals so you won’t loose motivation, even when times get financially tougher.
Track your income and expenses
Before you can start saving money having a clear overview of your income and expenses is key. Keep track of what you spend each month to help you get to know your spending habits.
Calculate how much it is you spend on basic necessities like your groceries, rent and bills. Subtract that from your total income. Then budgets can be created from what is left. Budget money for your hobbies, savings, gasoline and more if you have.
Be very critical about it. The less you spend on ordinary things, the quicker you can save up for the extraordinary things.
Write down all your expenses on the exact number(or use an app on your phone). Find your problem areas and see how you can adjust them to help you save money.
Separate your savings account from you bank account
Deposit your saving money into a savings account. Otherwise you won’t know the difference between what is for spending and what is for saving. Also leaving your saving money on your banking account makes you more likely to spend it.
Separating the two shows that you have money for spending and money for saving. Be sure not to touch your savings until your goal is reached.
Make a plan
Goals are rarely reached without a solid plan. So when your goal is set make a plan on how you want to achieve your goal. Write your plan as detailed as possible to make it clear for yourself what steps you need to take.
When you know how much money you can save per month, calculate how long it will take to reach your goal. Also when making a plan be realistic about it. The more obtainable the goal, the more likely you’ll stay dedicated to your plan.
Don’t overwhelm yourself
Everybody is able to save money. It doesn’t matter how rich or poor someone is. One euro on your saving account, is still one euro. Accumulation over time is what will make that number grow bigger. So every cent counts!
Don’t get upset or overwhelm yourself with the current situation that you are in. Like I said before, you always have the power to take control and change the situation.
Create more income and spend less
Cut out the ordinary things – Besides the basic needs in your life, find out what else you are spending money on. Cut out as much ordinary things from your expenses like eating out, grabbing a coffee on the way to work, buying the latest video games or going out for drinks with friends.
Spend your money on the essentials only. In this way you can save up much more money for the extra ordinary goal you want to achieve.
Eat predominantly plant based – There are ways to cut back on your grocery expenses without it compromising your health. Whole plant foods are one of the cheapest foods out there. Food like rice, beans, lentils, potatoes and many kinds of vegetables are super affordable compared to many animal based products. You can purchase them in bulk which often is cheaper as well.
Watch your bank account and health improve simultaneously!
Get rid of memberships – A lot of us have memberships which we don’t actually really need. Some of them can be pretty expensive without us realizing. Depending on your needs find out which memberships are unnecessary and get rid of them. Think about memberships on magazines, Spotify, the gym, your cellphone or Netflix.
Try at least to swap expensive memberships for less expensive ones.
Take public transportation, walk or cycle – Taking public transportation can save a lot of gas costs, reduce your carbon footprints and make you less likely to get stuck in a traffic jam.
An even better alternative to save money is to cycle or walk. A very healthy option as it makes you move your body. If your destination is too far away you can try to cycle halfway and take public transportation for the other half.
Bring your own food for lunch – Prepare your lunch at home before you go to work. Like this you won’t have to spend money on food that most likely is more expensive than what you can make at home.
Do activities that don’t cost money – Not all fun activities have to costs money. When meeting up with your friends go to a park and have a picnic where everybody brings their own food to share. Same can go for a house gathering. Have a walk through the forest, go exercising, watch some old movies at home or play board games.
If you do plan on something that cost money search the web for any kinds of discounts or Groupon deals.
Sell stuff you don’t need – Over the years people accumulate so many things. Things of which they have no idea how they got it in the first place. Most of the items you don’t use or need serve no real purpose any longer.
Go through your closet, bookshelf, drawers, basement and see what you can sell. If you haven’t used it for a while it is most likely something you don’t need anymore. Sell those pair of shoes, table, stack of books or electronic gadgets and save up for something you really need.
Don’t spend money you don’t have – This tips sounds fairly simple, but can be hard for people with credit cards or who loan money. It is wise to not accumulate new debt, especially if you currently have a debt to pay off.
Spending money you don’t have will only get you into more trouble. Lending money is only a short term solution. So purchase only when you actually have enough to spend.
Find cheaper alternatives – A big money saver for when you live by yourself is downsizing on rent. Do only compromise when your happiness is not at stake. Also take a look at your energy, internet and phone bills to see if there are any alternatives which are cheaper in the long run.
Same goes for gym memberships, the foods you buy, transportation methods that you choose and the activities you engage in on a frequent basis. Finding a cheaper alternative can help you save up a lot of money over time!
I hope my tips were helpful! If so, leave me a comment about it. Also feel free to mention any of your own tips. Thank you for reading, and until next time.
Lots of love,