Warren Buffet once shared insightful advice: “Don’t save what’s left after spending, but spend what’s left after saving.” As simple as it sounds, adhering to this advice is challenging, especially for individuals with a tight budget. However, it’s vital not to overlook the importance of saving for the future, regardless of how much you earn or spend.
Unfortunately, a recent survey revealed that 62% of Americans have less than $1,000 in their savings for emergency use. Although most people would like to accumulate savings every month, managing to do so can be extremely difficult within a tight budget. Personally, I keep my financial goals clear and prominent to help myself navigate through the challenges faced while saving. It’s paramount to explore ways to increase your savings even while managing a stretched budget.
Here are seven pragmatic ways to jump-start regular saving, even on a tight budget:
1. PRIORITIZE SAVING: Treat yourself like an important bill and pay yourself first, regardless of your income or how much you manage to save. Aim to deposit at least 10% of your monthly income into your savings at the beginning of every month – this prevents the temptation of spending that money.
2. TRIM DOWN ON SUBSCRIPTIONS: Evaluate if you really need multiple streaming services or that seldom-used gym membership. A few $10-$20 subscriptions can quickly accumulate into a substantial monthly cost. If your subscription expenses are skyrocketing, it’s time to cull.
3. ASSESS YOUR MOBILE PLAN: Mobile phone bills can be quite expensive, but with various providers and plans, there should be one within your budget. Research, compare, and negotiate with your provider for better deals.
4. RETHINK YOUR FOOD EXPENSES: Eating out frequently can dent your budget significantly. A practical solution would be to mostly cook at home and pack leftovers for lunch, thereby cutting down takeaway expenses.
5. BARGAIN YOUR BILLS: Reviewing your bills might reveal potential savings in areas like cell phone services, utilities, car insurance, or renters/homeowners’ insurance.
6. AVOID CREDIT CARDS: A sure-shot approach to saving money is to limit credit card usage. Using credit cards makes it easy to complicate your finances.
7. EXPLORE SIDE JOBS: If your earnings barely cover expenses, you may need to increase your income by starting a side job using marketable skills.
The bottom line is that there are numerous ways to save consistently. Monitoring spending habits, controlling utility costs, and managing grocery bills are essential for efficient saving. However, the real driving force behind successful saving is understanding your why – identifying your financial goals and the reasons behind wanting to save. Armed with these insights, you’re more likely to implement all the tips and advice dutifully. Reflect upon why saving money is critical to you. Recalling your reasons for saving will fan the flames of your motivation, paving the way for a secure financial future.
