Around 20% of Americans save no money. They might pay all their bills on time, but they’re one car accident or health crisis away from a financial catastrophe.
Some people really do not earn enough to save any money. The more likely scenario is that you never learned how to manage your money.
If you’re of a mind to stop spending and start saving, keep reading for four tips that will help you do it.
Table of Contents
1. Create a Budget
It’s a basic truth that you can’t manage your money if you don’t understand where it goes. That means you need at least a basic budget.
A budget forces you to look at all of your expenses. That doesn’t just mean rent and your car payment. It also means your morning coffee runs and those adventures in retail therapy.
Odds are good that you spend more than you think about things you don’t really need. Budgeting a firm allowance for coffee or new clothes can save you a lot.
2. Use Tech to Your Advantage
Technology offers you a lot of ways to save money. For example, you can ditch pricy cable channels for a video streaming service.
Many TV networks let you watch recent episodes on their website for free. That means you don’t fall too far behind your friends.
You can use smartphone apps that apply coupons or provide cashback on your purchases.
Are you an audiobook fan? Most libraries offer a digital service that lets you borrow audiobooks for free.
3. Plan Your Meals and Grocery Shopping
Almost everyone will occasionally eat out, order takeout, or go by a grocery store and buy the ingredients for one meal. For some people, those are a lifestyle. Eating that way is an expensive proposition.
If you plan your meals in advance, you can plan your grocery shopping. You can buy meat in bulk, divide it for specific meals, and freeze it. You can buy a right-sized bag of potatoes for the next few weeks and so on.
Grocery shopping this way lets you get more and still spend less money on food.
4. Cooldown Period
It’s easy for someone to make an impulse buy when they see something they want. It’s also very easy for those purchases to chew through money you want to save.
Give yourself a cooldown period of one or two days for any purchase over a certain amount. That gives you a chance to think it over and do some comparison shopping. More often than not, you won’t buy the product and will save yourself some money.
Parting Thoughts on How to Manage Your Money
If you struggle with how to manage your money, start with a budget. It arms you with information about where your money actually goes.
Use technology to help you reduce costs on entertainment, save on shopping, and lock in some cashback benefits. Plan your meals so you shop for groceries more efficiently.
Give yourself a cooldown period so you can make informed decisions about your purchases.
Looking for some next level saving tips? Check out our post on two-dozen money saving tips.
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