10 Simple Tips to Save More Money Every Month
by Zack Stone
Updated on Jan 5, 2017
This 2017, embark on a resolution to become a financially responsible person, and that's all it takes to watch your spending and save more money every month. To begin, download a financial calendar app (mobile) and a software (computer) that syncs with your email. Start adding every minuscule financial detail from utility bills, debt payment deadlines and even taxes, having these online reminders constantly ping you on payment deadlines will help in avoiding late fines and also keeps your credit report impeccable. In order to understand where you really stand financially, estimate your net worth by calculating your assets and debt owed. Here are more tips to help you save more money every month:
1) Keep your Savings Account away from your Checking Account
When applying for a new job, allow the company to quote a figure than giving away your salary from the previous place of employment, it might be a surprise to find out how much your professional worth exceeds your personal estimation. If you have contributed a substantial amount towards your present job, re-negotiate your salary keeping in mind that such increases will give you more cushion for mortgage and debt payments. In case of being unemployed, find out if you are qualified for unemployment, a lot of people who qualify fail to apply after judging themselves unfit for unemployment.
2) Re-negotiate your Salary
When applying for a new job, allow the company to quote a figure than giving away your salary from the previous place of employment, it might be a surprise to find out how much your professional worth exceeds your personal estimation. If you have contributed a substantial amount towards your present job, re-negotiate your salary keeping in mind that such increases will give you more cushion for mortgage and debt payments. In case of being unemployed, find out if you are qualified for unemployment, a lot of people who qualify fail to apply after judging themselves unfit for unemployment.
3) Budgeting saves a lot of Money
We all love to spend money, budgeting will help in spending wisely without that feeling of sinking guilt in the pit of your stomach. Set a monthly budget by calculating the average of all outgoing payments on expenses over a five-month period, this should include the amount you are willing to sacrifice towards savings. The cash left on hand is the amount you are allowed to spend in a month, if you spend way too much, consider spending only in cash over a three month period, this is bound to keep you within reins and prevent you from overstepping your monthly budget. As a rule, 20 percent of your paycheck should go towards paying off debt, mortgage, savings and retirement, but you should allot only 30 percent towards spending on needs/wants.
4) Finding that Pot of Money
To understand how to find that Pot of Money at the end of the rainbow, you need to prioritize what you really want from your money, keeping such goals in mind will help in keeping track of your money. In addition, Pots of Money can't be found spontaneously, a considerable amount of work goes into unearthing them. Create specific goals to be accomplished in a financial year and set dates to finish the task at hand, here is an example: Upgrade car by March 25th 2017, cash saved $4000, cash yet to be saved $1500. In order to save up the remaining money for the car, automate a certain portion of your paycheck to go towards the car payment, this way you get to buy a car on March 25th with cash at hand rather than taking out loans to fulfil this financial goal.
5) Taking precautions will save you from Debt
If you are caught in a mountain of debts, don't fear it but take steps towards chipping at it one layer at a time. Take up store card debts and credit card debts since they are high-interest debts and clear them off. This will make a huge difference in saving up on a considerable sum of money from going towards unwanted interest. In addition, remember never to cosign on a loan, no matter how close the family member is, because every time that person forgets to make a payment deadline, it will reflect on your credit score. If the loan is for college, always chose federal loans and scholarships. As for mortgage payments, it should never increase beyond the 30 percent mark of your monthly income.
6) Learning to Shop Right
As a rule of thumb, if you buy something that would be in frequent use, go for a quality buy than cutting corners on it. At the end of the day, it is experiences you remember and not things, keep that in mind when you look at those new pair of branded shoes that would eat away all your savings for the month, would you really remember those shoes! Further, minimalistic-eco-zero waste consciousness has become all the rage now, think of how much adopting these lifestyle choices would do to the planet, along with altering your life to be less chaotic; it could be time to take the plunge.
7) A well-insured person saves Money
Usually, work insurance only covers the bare minimal, consider opting for addition insurance that would protect you from break-ins, natural disasters etc for a small premium.
8) Keep an Eye on Investments
If you have read up enough on investing in the market, go for it provided you personally keep an eye on how your money is performing and set goals for your investment to reach. If your investment is under performing for a few months, pull out and consider other options, especially if you don't have a whole lot of cash to play around in the market.
9) Reward yourself by setting up Tiny Goals
In the end, not allowing your debt to control your peace of mind, will increase the index of happiness. Further, setting small goals for yourself will help in achieving a bigger picture, than setting bigger monthly targets that are impossible to meet. Think of these goals as quick yielding, allot a bit of money to reward yourself every time you stick to the budget, and meet your monthly goals, you could then go on a trip at the end of the year.
10) Money saved for Retirement equals true Financial Stability
The earlier you start out on that retirement fund, the more it will grow, giving you a chance to retire early. Our parents and grandparents had to work all their life to retire much late, leaving them physically incapable to enjoy retirement life in general. But nowadays, people retire early as a lifestyle choice, because work eats up such a large chunk of life that there is so little left to enjoy in the time left after a work day.
Other Blog Posts
About Smart Finance Guru
Smart Finance Guru aims to provide users with some of the best rates for their existing or new mortgage loans. Smart Finance Guru is a free online service that empowers people to save more money by providing access to a variety of service providers. This 100% free service aggregates information from extensive resources, providers and companies to give users the choice they need to select the ideal service provider for their mortgage.