A very popular New Year’s resolution people make is to cut back on spending and save more money. One positive of our recent quarantine is that this a little easier to do, and incorporating financial stability and being mindful of spending can be very satisfying and provide benefits in many facets of one’s life. This can come from a variety of strategies such as tackling debt, eliminating unnecessary purchases, and just putting more into a savings account on a monthly basis. Now being in the third month of the year, people may have fallen off the wagon a bit. Maybe it was never your resolution at all, but the following are a few money saving tips that we can all benefit from and incorporate into our daily lives.
One way to incorporate a new money saving habit into your daily life is to cut back on your grocery costs. This sounds alarming since food is essential to existence, but there are many ways to cut back on your grocery bill. While shopping, ask yourself the question, are the three bags of chips and packages of Oreos a necessary purchase? Instead, focus on purchasing items that will satisfy hunger, because when you’re fuller longer you eat less; eating less can lead to decreased grocery purchases/consumption. Another tip is to plan meals for the week; make a list of the items needed to make those meals before heading to the supermarket, and purchase only what’s on your list. Try your best to not fall into the temptation of the end cap displays and impulsive desires at the checkout line, as those can be the real budget busters!
Another money saving tip is an obvious one, but nonetheless important to mention. Hitting the coffee shop and eating out can have huge ramifications on our wallets. Make coffee at home for pennies on the dollar instead of spending anywhere from $3 to $5 for an overpriced caffeinated beverage. There are so many creamers and coffee additives available today that essentially the coffee shop can be skipped, which just keeps more money in your wallet. Also, not eating out and making meals at home can make a huge difference. It sounds relatively simple, but this can absolutely add up month by month. The average household spends approximately $3,365 on food outside the home each year, which equates to $280 per month. That $280 could easily pay for a week’s worth of groceries or even more depending on the size of your family. Next time you’re considering eating out, think to yourself, can I make something at home? Usually the answer will be yes!
Finally, setting up an automatic transfer of a specific amount to a savings account on payday can increase savings account balances drastically. When the money is automatically pulled and put into another account, the money is out of sight and out of mind. Having a savings account is so important to have in emergency situations. Feeding this account on a regular basis is a great habit to get into, and pays off in those situations where a large sum of money is needed suddenly. From personal experience, it’s amazing how much one can grow their savings account in 1 year by contributing on a regular basis.
Incorporating these three simple things into your daily life can pay off exponentially and put more funds in your wallet and savings account. It’s important to be mindful of spending, as in some cases spending can get out of hand. Get yourself into a comfortable financial situation starting with these three simple tips!