Saving money sounds simple enough. All you have to do is not spend money to save money. Well, if it were that simple, everyone would be able to do it. The reality is that getting started is the most challenging part. Once you can build a habit of saving, you may find you don’t need a budget anymore! Here is a quick guide to help you start saving money.
How to Start Saving Money
Want to know how to start living on a budget? Start here.
Get Personal with Your Money
For you to be able to start saving money, you need to know your money on a personal level. You need to know how much money you make, how much you’re spending, and even what you’re spending that money on. You should know your budget forward and then backward! You can’t save money unless you know how much you can save!
Live Below Your Means
The best tip to getting started is to live below your means. If you make two paychecks, try just living off of one. Ideally, you should aim to live on 70% or lower if you can. Use the additional money to put toward savings or your savings goals. Living below your means isn’t something that happens instantly, but rather simple changes you make to lower your cost of living.
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Make More Money Than You Spend
This one ties into living below your means but focuses on the making money aspect. If you need to have more money in your savings account, you’re going to have to work for it. This might mean taking up a side hustle, or even a second job if you need to. While you’re paying off your debt, you may need an additional income to have enough to pay down your debt faster.
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Create a Budget and Track Your Spending
If you prefer a pen and paper, then use a pen and paper. If you like apps, use an app! It doesn’t matter how you accomplish these two goals, but you need to do it to save! Tracking your spending will make sure that you are spending based on your current budget. Your current budget will tell you how much and what you can spend your money on each month. Don't just throw money down the toilet, know where you are spending every dollar.
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Make Goals and Give Yourself a Why
Saving money will be hard, and there will be a lot of sacrifices along the way. During these difficult times, having a crystal clear goal or why in mind is what will help you stay the course! It could be a trip, a promise of a debt-free life, or even saving up for a down payment on a house. Regardless of what it will be, you need to make a goal and your reason for why you want to save money. Write it down and refer to it often whenever you need inspiration!
You don’t need to panic if you don’t know where to start! This guide will help you get started if you’re ready to start saving money now! While you don’t always see the immediate benefits of these steps, these will be lifelong habits you’ll be happy you have down the road!
What kinds of questions do you have for me about saving money? I'd love to hear them! Drop me a line or send me a message rachel@rachelteodoro.com
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