Saving money can feel impossible, especially with prices increasing so dramatically today. However, with the proper steps in place, it is possible. The key is to be intentional about how and when you save rather than leaving it to chance.
Here are six ways to save more money each month.
1. Automate your Savings
Make savings automatic, so there is no way to forget to save. First, ask your employer if you can divide your direct deposit into two deposits, one in your chequing account for bills and one in savings for the future.
If your employer cannot split your direct deposit, set it up with your bank. Most banks allow automatic transfers from chequing to savings account on a predetermined day each month. Figure out how much you can afford to transfer and make it automatic.
2. Make Savings a Part of your Budget
Treat savings like a non-negotiable bill. Include it in your budget, so you pay it each month. Make the due date your pay date so there is no risk you’ll spend the money before saving it.
3. Negotiate Bills to Have More Money to Save
If you have bills that aren’t fixed, like your mortgage, consider finding ways to lower them. Negotiate your rates with the providers you can negotiate with and shop around for cheaper services for the ones that will not negotiate.
Any money you save on services, put toward your savings to increase your savings and decrease your unnecessary spending.
4. Start a Side Hustle
If you cannot make more money in your budget with what you make now, consider adding a side hustle. You can do about anything from home in your free time to make more money, such as freelance writing, starting a blog, selling arts and crafts, or pet sitting. Allocate the money you bring in for savings and avoid spending it.
5. Eliminate your Debt
Any debt you carry is an opportunity lost to savings. The faster you pay off your debt, the more you will have to save. The key to this method is immediately allocating any money you save from paying off debts to your savings or retirement account to avoid letting it naturally seep into your regular spending.
6. Set up a Separate Savings Account
Do not mix your savings and chequing account funds. Even having the accounts at the same bank makes it easy to tap into the funds and use them for something other than your savings goals. Instead, open an account online or at a bank that is not easily accessible to avoid spending money meant for savings.
Saving more money each month ensures you will reach your financial goals faster. You will also avoid getting in over your head in debt by saving rather than spending. The key is to budget for savings and follow through on it monthly. Then, check your budget periodically to see how you are doing with savings and if there’s room for more.
If you feel like you cannot figure out how to save more money and would like some help, contact Creditaid today. Our compassionate counsellors have extensive knowledge of debt to assist you with your goals. In addition, Creditaid offers a broad range of solutions so people can get their finances back on track.