Ok, not all of us were born with the preverbial silver spoon in our mouth, and most of us aren't relatives of Donald Trump or Bill Gates. So, what do do? We hear it all the time, number one, how hard it is to get a job that pays decent, let alone save any money from that job. Most of us find ourselves living paycheck to paycheck. But you will be surprised how much money you can save by implementing a few tips and tricks.
Here's a few:
Make a Budget
No matter if your making $8.00 an hour or $80,000.00 a year everyone needs a budget. Without a budget, its like owning a business without having a business plan. Everyone needs a budget, so you know exactly how much money is coming in each month, and how much is going out. Get a sheet of paper. In the middle of the page, from top to bottom put a vertical line. On the left side of the paper write "income". On the left side, write "expenses".
On the left, you want to list all income you have coming in for the month, from your job, your second job, your third job, allowances, anything you have coming in, after taxes. Write down the dates the income is coming in and what your total projected income is for the month. On the right side of the paper, list all of your expenses. Rent, electric bill, gas bill, water bill, gas for your car, car payment, car insurance, food, everything. Now, take the difference from your income and your expenses and see what you have left. Example, income is $2,000,00, expenses are $1,400.00, leaving you with a surplus of $600.00 for the month. Now, you want to take $500.00 of that surplus and put it in a savings account and don't touch it, and leave $100.00 of it in your checking account for miscellaneous expenses, such as eating out, movies etc. If you are consistent with that plan, in this example you would save $500.00 a month, or $6,000.00 a year!
Spend less on Food
Most of us don't give a lot of thought to this, so we run to the store when we want food and buy whatever we want, no list, no plan, and we also run and pick up take out when we want to.
Budget in an exact amount each week / month for food, and don't exceed it. Find coupons, bargains, surplus stores, and buy the best deals, look for sales. Before going to the store, bring with you a well thought out grocery list and stick with it, so you can prepare meals at home, saving you money instead of eating out all the time. Note to self, don't go grocery shopping when you are hungry.
Cashback rewards card
Find a credit card with a good interest rate, and that offers cash back on every purchase. Then, you can buy your groceries, pay your car payment and other items on the card, earning cash back rewards, and then pay your credit card balance off each month in full. As a bonus, this habit will help you build your credit score as well.
Car pool
Instead of spending your money on gas to drive everyday, or taking Uber everyday, if possible car pool with a friend sharing the cost of gas. This splits your cost of gasoline in half for the month. If you were spending $100.00 a month on gas, and you can go to work everyday with a car pool buddy, you can save close to 50% on your monthly gas bill. Also, close trips you don't always need to drive. you can walk, or ride a bike, saving you gas, and giving you great exercise.
Hold your car insurance company accountable
At least twice a year, shop around for the best car insurance rates. They fluctuate greatly. You may find, by switching carriers that you can save $20.00 to $50.00 a month.
Don't be an energy hog
There are a lot of things you can do at your home or apartment to save money on your utility bills.
You don't have to live in the dark, but don't leave lights on and burning in rooms that are not being used. Whether you have has hot water or electric, take shorter showers, and don't take baths. The more hot water that is used, the more your bill is going to be. Taking short showers can save a lot of money on your gas or electric bill. The same goes for laundry. Wash your clothes in cold or warn water instead of hot. Air conditioning and space heaters take a lot of energy. Find the most efficient unit, and use sparingly.
Cell phone
Talk to your carrier, and find out how much you are paying each month for your plan. Its very competitive and many carriers now are giving unlimited talk, text and data for between $40 and $50.00 a month.
Home cable and internet
Make sure you haven't "over bought" a plan that you don' need. Shop around, with your current carrier and with other carriers to find the best deal on cable and internet. Many people are doing away with cable tv and just getting a Netflix or Hulu account which is much cheaper.
Air dry your clothes
When you can air dry your clothes instead of using the dryer. As a rule of thumb, using the dryer costs around 50 to 75 cents per load that you do.
Be disciplined
"Hey look a sale"! Don't fall for it. Budget each month, stick to it. Prioritize your expenses. There will always be sales. If you cant afford it, don't buy it.
These are just a few ideas, there are many more. If you use just a few of these you can save a lot of money each month, and start putting away those savings in a high interest earning savings account.
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