If you’re one of the many people living pay cheque-to-pay cheque, saving money can seem like a lofty, almost impossible goal for 2020. Even if you do manage to save a little, you can easily find yourself having to dip into those hard earned savings when emergency expenses arise. Wiping out weeks or even months of effort in one fell swoop.
Instead of scraping by, there are a few easy lifestyle changes you can incorporate into your daily life. Read on if you’re wondering how to save money as we’ve listed Six of the big saving suggestions below, though if that’s not enough for you check a whopping 40 money saving tips in this blog post.
Put saving first
One of the best ways to save money each month is by putting it aside before anything else. Many people try to save by looking at what they have leftover towards the end of the month. Instead, put 10% of your pay cheque into a savings account as soon as you get paid. If that’s too much, but in 5% – or even 1%! It will all add up.
Check your debt
If you’re trying to save money while still paying off a large debt, start with the debt first. Check how much money you spend per month on your debt’s interest and payments for a reality check of how much it’s really costing you. Work to eliminate your debt first, and saving will be much easier afterwards.
Save on utilities
Simply lowering your thermostat by a few degrees can save you money in energy costs. Turn off lights when you’re not in the room, turn off the faucet while you brush your teeth, and don’t let the heating run all day in the winter. Little steps can make a big difference over time.
Pack your lunch instead of eating out
Buying a quick and cheap lunch out while at work may not seem like a big deal, but again, it all adds up! You can save significant amounts of money over the course of a year if you choose to pack a lunch using ingredients from home, or leftover dinner, rather than buying lunch out a few times a week.
Identify unnecessary expenses
If you find your expenses are too high each month to save as much as you’d like, then it’s time to map out a budget. Perhaps you already have a grocery budget or savings budget. A stricter budget means combing your bank account statement and adding up each purchase to weed out unnecessary spending. It’s hiding in there, and it’s probably more than you think!
Cut down on everyday costs
While checking for wasteful spending, see if there’s anything you continually shell out for that you don’t really use. Most subscriptions and memberships renew automatically. Are you using them all? It’s also a good idea to check community event listings to find free or cheap events that you can enjoy without spending on entertainment. Summer fairs and Christmas markets are usually free to enter!
Finally, don’t be too hard on yourself. If you make your budget too strict, it will be impossible to stick with it. If you find yourself going over one month, renew your commitment to your budget the next month. Give yourself time to consider a new purchase before buying – and if you still really want it, then work it into your budget. Don’t think of your budget as a punishment or restriction. Instead, look at it as a tool to help you reach your financial goals.