Every one of us wants to save money as most of us are living from paycheck to paycheck. If you are one of those who are looking for ways to manage their monthly expenses, here are some tips to help you have some handsome monthly savings:
Note down your Expenses
First of all, you must know how much you spend in a month. Break down your expenses into two categories: needs and wants. Your needs will be your fixed expenses including home rent, petrol charges, loan payments, gas and electricity bills, internet bills and more.
Your wants will contain the flexible expenses; a large portion of these expenses will be the money you usually spend on clothes and entertainment. These are the expenses on which you can save money.
Make a Budget
Once you have an idea of your monthly expenses, make a budget. Organizing your recorded expenses in a monthly budget is very important because, without a budget you will end up spending your entire income way before the end of the month. Make sure to cut down unnecessary spending in your budget.
Also, keep an extra budget for uninvited expenses which may include a medical emergency. An ideal budget is the one which covers all your fixed and flexible expenses without letting you spend from your savings. Once you have prepared your budget, the real challenge is to stick to it.
Cut Down your Expenses
After making your budget, create a savings column within it. Always, keep 15-20% of your income as savings. If your current expenses are not letting you save, it’s time to limit them. Think of ways to reduce your expenses.
Try spending less on entertainment and dining out. Track how much do you spend on food and clothing and think of smart ways to reduce your spending. For example, if you eat out thrice a month, make it once. Instead of having your morning coffee at your neighborhood café, prepare a cup at home.
A great way to save money is to use coupons on shopping. You can find coupons in the newspaper or from various websites. Form clothes to food, you can save a lot of money by using discount coupons. Nowadays, almost every store and every brand offer coupons, so why not benefit from it.
Never pay full price for anything. If there is something that you don’t need urgently, wait for retailer to offer discounts on it.
Every month, a large portion of our budget is consumed in paying the electricity bills. So, if you’re struggling to cut down expenses, don’t waste electricity and see the difference yourself.
Cancel Unnecessary Subscriptions
From beauty boxes to magazine subscriptions, nowadays there are a lot of monthly subscriptions available for children and adults. A lot of money is wasted on these subscriptions. Almost all of us have a subscription that we don’t require; it’s time to cancel them.
Evaluate all your subscriptions and unsubscribe ones that don’t worth the cost. If you don’t want to cancel your subscriptions, you can downgrade them or switch to cheaper plans.
These measures will help you save up monthly for when you really need the money. Happy savings!