Did you know that the average household debt for US citizens is about $6,000? Last year alone, the United States had a debt adding up to trillions of dollars.
Being in debt is one of the most difficult situations to face in life, but luckily, it is possible to prevent that. There are numerous ways you can save money this summer and have more peace of mind knowing that your financial future is secured.
How to save money the easy way? Keep reading to find out smart savings strategies!
4 Top Ways To Save Money This Year
You might be happy to find out that you don’t need to be Jeff Bezos or Bill Gates to know how to manage your finances better. You just have to put the following tips into practice:
1. Save 10% From Each Paycheck
It’s that simple! Before paying everyone else - the electricity company, the guys who provide you a stable internet connection, the ice cream man, etc - start paying yourself first.
Saving 10% from each paycheck might not seem like much now, but it will quickly add up over time. Let's say that you make $3,000 each month, 10% of that means $300.
You put this money into a savings account and never touch it. This is emergency money which should only be used in really serious situations such as for paying hospital bills, repairing the roof, paying for putting out a wildfire, renovating your house after it has been damaged by tornadoes, etc.
Although this month you’ll only be $300 richer, in just one year you’ll have $3600 set aside. Just imagine how confident you’ll be with $3,600 in your savings account!
2. Create a Budget And Stick To It
Creating a budget also helps you stay on top of your expenses.
You don’t need a degree in economics to do that. You just create categories where you spend money each month. For example, 30% can go for rent and other household-related expenses. 20% you can spend on transportation. 30% on high-quality foods and beverages. 15% on clothes and accessories. 20% on pleasure expenses, etc.
By doing so, you are taking control of your finances and can avoid unplanned and impulse expenses which can leave you penniless by the end of the month.
3. Track Major Expenses
Whatever you monitor and track, you can control, including your finances.
Start by keeping an expenses journal. Write down each major expense, usually something larger than $20. This will help you identify areas where you splurge and you can work on finding a solution to that.
4. Eat at Home More Often
It is nice to eat out with your friends, but you don’t have to do that every day when you want to live frugally and save more money.
Eating in restaurants on a regular basis is a surefire way to spend more than necessary. Instead, you should buy your own foods and cook at home. Not only that this can save you several hundred dollars by the end of the month, but you also get a chance to eat healthier too!
Start Saving Money Today!
These are just a few ways you can save money this summer, but there are numerous others.
Check out our articles in the Finance section to learn more about how to build wealth in a tough economy!
