The thought of saving money each month when you are living paycheck to paycheck can be intimidating to say the least. How are you supposed to save when you are spending all of your hard-earned cash on things like rent, utilities, fuel, food and other necessities?
Rethinking the way you spend can not only help you become more efficient with paying your monthly expenses, but it can help you add a little extra cash to your nest egg as well. Break away from that paycheck to paycheck lifestyle with these creative money saving tips.
How to Save Money Every Month
- Open an Interest Bearing Savings Account: There are numerous financial institutions that not only offer free savings accounts to consumers, but they offer interest on the funds in your account as well. While the interest may not initially seem like much, keep in mind that as your funds grow, so will the interest.
- Direct Deposit: One of the biggest problems many consumers have is actually setting aside money to build their savings. Set up direct deposit and have a set amount placed in your savings account every month automatically. You will soon find yourself regularly contributing to your nest egg without missing a beat.
- Loose Change: Place your loose change in a large jar or other type of container at the end of each day. At the end of the month, take the money you have saved to your financial institution and deposit it into your savings account. Chances are, you’ll never miss such small amounts, and the funds can add up before you know it.
- Separate Your Cash: Late fees and reconnect costs can really add up. Avoid them whenever possible by remembering to pay your bills on time. In order to help you keep track of the money you need for expenses, estimate what you think you will need to spend on things like transportation, housing, utilities, etc., and create a separate envelope for each expense. When all of your bills are paid, deposit any remaining cash into your savings account.
- Buy in Bulk: Purchase non-perishable items in bulk and stock up when items go on sale. Savings on things like groceries and toiletries can make a significant impact on your monthly expenses. Don’t forget to put the cash you save into your savings account.
- Shop Around: It really pays to shop around for things like insurance, cellular phone service, fuel, and more. While there are numerous local businesses in the Ontario area that will compete for your loyalty, remember to check internet pricing as well.
- Make a List: One of the easiest things you can do when considering how to save money every month is to make a shopping list before you ever enter the store. If you stick to your list, you could save hundreds of dollars before you know it.
- Personal Loans: When money is tight you can help avoid late fees, penalties and reconnect fees by taking out a personal loan to help you get back on track. Remember to only take out enough to cover your expenses, and create a solid plan for loan repayment to avoid added interest costs.
If you are interested in learning more about how to save money every month, or for information about obtaining a personal loan to help you get back on track, contact Fast Access Finance today.