Saving money requires discipline and repetition. Whether you’re saving for a purpose or to simply stop spending as much money, it takes dedication and consistency. There are plenty of ways to save, but it never hurts to remind yourself of the ways you can actively improve your financial situation on a daily basis.
Establish a budget.
Establish your monthly necessary living expenses for the month, set a budget you’d like to stick with, and continuously reference it. At month’s end, you’ll be able to determine if you spent above or below your budget.
Record your expenses.
The best way to maintain your budget is to record your expenses. What have you been spending your money on? Log it daily, even just in a journal, and add up your total expenses at the end of the month. Make sure to log every expense and be honest - falsified numbers won’t help you save!
What are you saving for? Set short-term and long-term goals. Maybe you just want an emergency fund on the off chance something happens, or you’re saving up for a down payment for a car or a vacation. Longer-term goals would be like saving for retirement, your child’s future education, or a down payment for a house.
Put some away every week/month.
The best way to save is to make an effort to put away some amount each week, each month, or each paycheck. Find a flow that works for you - if that means using your first paycheck of the month for bills, then take out a comfortable portion of your second paycheck. It’s most important to pay your bills now, and then to put some away for saving.
Automate your savings.
If you don’t want to actively think about spending or having to set aside money, automate your savings by setting aside a certain amount or percentage from each paycheck. You won’t have to think twice about saving - it will happen for you!
Cut unnecessary or frivolous costs.
If you want to save money, you need to stop spending it where you can. Determine your needs and your wants, and do your best to avoid buying “wants” without first 1) paying for your needs, and 2) setting aside some amount of money for savings. Only then may you purchase a “want.”