Saving money is an important life skill that everyone needs to master. But it’s easier said than done, especially when you have to juggle necessary expenses with spending money on daily luxuries and fun things.
Want to learn how to save money more easily? Read on for a handful of quality tips you can implement starting today!
Record All Expenses
The first step to learning how to save money is to record all of your expenses, including both everyday expenditures and big purchases. Write down all the money that you spend or use an online app or digital tool to do so instead.
Information is power. You must know how much money you spend if you hope to save money. Only then, by recording all of your expenses, can you learn what you can cut and how you can stop spending money on unnecessary things like eating out every day or subscription services you don’t really use.
Read Budgeting Books and Tutorials
Another good way to learn to start saving money is by picking up a few budgeting books or online tutorials and reading or consuming them thoroughly. Budgeting books can tell you the fundamentals of saving money, as well as help you build up positive habits to avoid impulse purchases, particularly when out with your friends.
Granted, this tip requires you to spend money to save money, but that’s true for any major money-saving effort. Good books can also help you make money on Cash App or other apps/services, so there’s a chance you’ll doubly benefit by buying the right educational resource!
Learn the 50/30/20 Rule
The 50/30/20 rule is a good rule of thumb to follow if you want to save money consistently. In a nutshell, you should record all of your expenses, then work toward spending your money with the following distributions:
- 50% of your money goes toward necessary expenses, like rent, groceries, bills, etc.
- 30% of your income goes toward “wants” like luxuries, streaming services, eating out once in a while, etc.
- 20% of your income goes toward paying down debt, then put into a savings account
If you follow this rule, you’ll save money quickly and efficiently. It’s a good overall strategy if you don’t know how to save money yet, but want to build up the habit and discipline to do so in the future.
As a side bonus, many of the above-mentioned books and tutorials will mention this rule, so it’s a good policy to start following ASAP!
Use Special Card Offers
Your credit and debit cards probably have certain offers or special features you can and should take advantage of if you want to save money quickly. For example, if you want to know how to make free money on Cash App, the Yotta debit card comes with a special feature: the possibility of refunding transactions you make, provided you link the card to a Cash App account.
In this way, you can make free money, save money, or enjoy discounts on your everyday purchases depending on the terms and conditions of your chosen credit and debit cards. Special card offers are excellent ways to save money in the long term, particularly if you use cards that have cash-back conditions or savings bonuses.
Read the fine print of every card carefully to further educate yourself and learn how to save money much more diligently.
Set Savings and Spending Goals
To learn to save money, you need to set specific savings and spending goals. In theory, you can use the same app or digital software you use to record all of your expenses. In addition, many banks have online spending and savings tools you can take advantage of if you want to keep a close eye on your money over time.
Use Auto Deposit Tools
Similarly, many of the best banks and credit unions have auto-deposit tools. You can and should take advantage of these when possible. These take a percentage of every check or deposit put into your checking account and put that percentage into a savings account or automatically pay your bills.
This is a good tip to follow if you are still building up money-saving habits or learning how to save money from scratch.
Pay Down Debt First
Lastly, be sure to pay down any debts under your name first, even before building up a savings nest egg. Debt can spiral out of control and cost you more, in the long run, the longer you avoid paying it off. With that in mind, try to pay off each debt in your name, starting with the smallest debt and working your way up to the top. By doing this, you’ll learn how to save money more efficiently than ever.
In the end, learning how to save money is a matter of applying yourself and doing proper research. Follow the tips above, set your mind to the task, and you’ll start saving money faster than you thought possible. Good luck!