There are many ways to save money, but today we’re going to start with the basics. One of the best ways to start saving money is by setting up a budget. Budgeting will help you see what money is spent where. It will also give you an outline of your monthly costs and help you start making budget cuts. If you’re not sure how much to budget, keep a record of your expenses for a week or even a month. We know that budgeting is not fun, so if it helps, think of your savings as paying yourself. Having that mindset has proven to drive people to save more efficiently.
Another great idea is to pay off debt first. Wait, what?! If you’re trying to save, why shouldn’t you save AND pay off debt at the same time? Well, paying debt off first actually saves you money. The interest in your debts can vary and can have an impact on your wallet. So, paying your debt first reduces the interest added to your overall debt (it also can help raise your credit score). Once you have paid your debts, then you can start working on your savings. While saving, try to stay away from investing. In some cases, it works well for people, but saving takes priority over investing.
One more great thing to do is to set a goal. Not only should you set one goal, but multiple goals. Start with a couple of short-term goals (6 months-3 years). Then work your way into your long-term goals (4+ years). This, along with a budgeting, can really help you stay on track with your savings. If this seems like too much, simply start with 2 short-term goals. Once you reach those, create 3 more short-term goals. Keep adding to your short-term goals, until you feel comfortable setting a long-term goal you think is achievable. This will not only grow your savings, but put you in a good routine to create healthy savings growth. Taking those first steps is the hardest. If you are worried about how and where to start, why don’t your stop on in and tell us about it. At Expree, we give your goals our full attention.
