When you are trying to save money each month, it helps to get into good habits that make saving money an automatic process. By training yourself into good practices, saving money will be something that comes naturally to you, as opposed to something that you have to force yourself to do. This guide will outline ten healthy, money-saving habits that you can start putting into practice, seeing your money grow and put to good use. Read on below to learn more.
Pay Extra on Your Debts
Every month you should be trying to put money away towards paying off your debts. It’s not just enough to pay the bare minimum each month but to try and pay as much as possible to bring those costs down. This means that when those debts are paid off, you will have far more money each month. Nonetheless, if your debts are getting to be too much, then it makes sense to consult the services of a law firm to help avoid a debt lawsuit.
Track Your Spending
By having an app or a spreadsheet that keeps close details on all of your spendings, you will be able to understand what you are spending your money on. This is essential if you want to get on top of your spending habits and then to make effective changes to those habits to save more money each month. This way, you can see if you are spending unnecessary money on spendings such as takeaway coffees or meals in restaurants, before cutting them out completely.
Sparingly Use Credit Cards
Credit cards can be useful in certain circumstances, such as offering cash-back on certain purchases and points that can be translated into free plane tickets or hotel stays. They should be used carefully, however, as you don’t want to get into credit card debt that could quickly eat away at your monthly earnings. If you find yourself in credit card debt, paying this off should be your first focus before you start thinking about building up savings.
Automatically Put Money into Savings Accounts
There are now apps available that you can use to save money each month. They allow you to see your spendings and automatically allocate a percentage of your earnings that can then be put into a savings account. This savings account can then accrue interest, meaning that your money can grow. What’s great about this is that it does all of this automatically, meaning that you can save money without even having to think about it.
No Purchase Days
Another amazing habit to get into is allocating days of the week or month in which you agree not to make any purchases at all. The trick here is to get all of your necessary groceries in advance, so on a Sunday, for example, you can enjoy a day at home without once getting out your card or wallet at all. Try and focus on activities that don’t cost any money such as going for a long work or:
Cycling More Often
Cars cost money in gas or petrol. Public transport costs money in tickets or monthly subscriptions. In fact, the average American spends between $2000 to $5000 a year on commuting. A bike is different. After that first initial purchase, it costs almost nothing to keep your bike working well, meaning that you can save a lot of money by using it for getting around. While this will differ depending on your location, proximity from work and services, and the terrain of where you live, riding a bike every now and then can easily save you a lot of money.
Automate Your Purchases
Just as you can automate your savings, one great saving habit to get into is automating your purchases and creating direct debits. The reason for doing this is that you make sure that you are paying everything that you need to on time, meaning that you don’t get stung with any late fees, which can cost the average household nearly $600 a year. This is especially important as a means to get out of debt.
Open up an Investment Account
A simple way of letting your wealth grow is to open up an investment account. While it may look like the recent news at GameStop suggests that striking gold on the stock market is a surefire way to wealth, it looks like this type of peak won’t happen again any time soon, meaning that it might be a better idea to invest in a mutual index fund which traditionally has reliable returns that you can have every single year. The great part about this is that it rises at a rather reliable rate, meaning that you don’t have to think much about it at all.
Hold Commodities or Cryptocurrencies
Another investment option and a way to procure wealth for yourself are to spread it through different commodities or cryptocurrencies. While investments like Bitcoin, which recently had a large cash injection from Tesla, might be seen as a more risky bet, commodities such as gold and silver are a lot more reliable and can see modest returns. It’s worth diversifying your portfolio here, so if something that you have bought has decreased in value, then you can at least compensate for those losses through the other parts of your portfolio rising.
Remind Yourself of Your Goals
Keeping an eye on the prize is essential when getting into money-saving habits. Remind yourself daily of your goals so that when you feel like you are losing control of your money, you can set yourself straight again. This also gives you a great sense of satisfaction each time more money is saved, helping to boost your mental health in the process. Make plans for what you will do when you reach a certain savings goal, such as taking a holiday, buying a luxury item, or even planning for early retirement. These techniques have also been proven to make you feel good about yourself, thus inspiring you to take even bigger sacrifices when saving your money.