Do you have trouble making your money last as long as possible? Click here to learn about 5 clever budgeting tips to keep you in the green.
According to this research, two-thirds of Americans would struggle to scrounge up $1,000 in an emergency.
That next unexpected doctor’s visit or flat tire might just put you in the black.
Thankfully, a few small changes can make a big difference. With these five budgeting tips, you can start squirreling away for that rainy day.
Get saving (instead of spending) with these money-saving tips!
1. Record Expenses
Before you use the rest of these budgeting tips, let’s see what you’re spending.
Keep track of expenses for the next month. Save every receipt and look over your bills. You can also create an Excel spreadsheet to keep it all organized.
Split these expenses into categories, including:
Once you have these expenses, tally it up and see which category is eating at your budget.
2. Make a Budget
Now that you know what you’re spending every month, budget it out.
This is where an organized spreadsheet makes it easy. To start, give each category a set amount.
Consider your monthly income so you’re not overspending. Creating a monthly spending limit can also help you determine how much to save each month.
Then you can use the rest of these budgeting tips to cut costs and set money aside.
Give the 50/30/20 budget a try. That’s 50 percent of your income for necessities, 30 for wants, and 20 for savings. If that doesn’t work, you can adjust the percentages to determine the right balance.
3. Cut Costs
35 percent of Americans only pay the minimum for their credit card bill each month.
Once you learn how to budget your money, you can cut those credit card costs. That way, it’s easier to pay off your bill each month.
Take a look at your monthly expenses. Where are you overspending? Here are a few ways you can cut costs:
- End subscription services (Netflix, Birchbox, HelloFresh)
- Save change
- Make a grocery list (and stick to it)
- Plan meals beforehand (and eat out less)
- Check for discounts
- Make your own gifts
- Restrict online spending
- Bundle cable and internet
Coupon clipping and deal-hunting are two more ways to save money. For example, you can use Dealwiki to keep on the lookout for the latest deals.
For every cent you don’t spend, you can tuck those costs into your emergency fund instead.
4. Use Cash
Using cash can help limit your credit card spending. As an added bonus, it’s also physical proof of how much you’re spending.
Give yourself a cash allowance each week. Then, watch it dwindle down a little more each day. This strategy can help you stop spending on unnecessary expenses.
5. Make It Automatic
Download an app or create a separate savings account. By automating your savings, you can leave the app to do the heavy lifting.
That way, you don’t have to stress. Instead, you can watch your savings account grow every single week.
A Wealth of Knowledge: Five Smart Budgeting Tips
Cha-ching! With these five smart budgeting tips, you can start saving for the next rainy day. Save instead of spend with these five ways to save money.
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