5 Money-Saving Tips for Beginners

Whether you're building an emergency fund, setting aside cash for a vacation, or saving for a house, we all know saving money can be challenging. But there are ways to make it easier, and maybe even a little fun. Here are five money-saving tips for beginners.

Clearly define your savings goal

Defining the "why" behind your savings can help to boost motivation. And the more specific you can be, the better. If you know that you want to save $500 to take a road trip this summer, you're far more likely to hit the goal than if you just want to "save more money."

Once you have your goal set, write it down and put it somewhere you can see it every day. Keeping your goal front and center can help to remind you what you're saving for when you feel tempted to spend unnecessarily.

Automate your savings

Technology makes saving money more effortless than ever before. Based on how much you plan to save per month, you can set up an automatic transfer to your savings account on payday. This way, you won't see the money in your checking account (or be tempted to spend it).

Make it a game

Saving money doesn't mean you have to focus on all the things you can't do or have. Instead, consider setting up a savings challenge. And as with any game, it's always better if you can find a family member or friend to join you. Here are a few ideas of fun ways to focus on saving.

  • Try to have as many "no spend" days as possible each month. That means eliminating excess spending on clothes, eating out, or online shopping. Be sure to transfer all of your excess cash to savings at the end of the month.
  • Make a wager with a friend to see who can cook at home more days this week. The loser has to put $10 toward the winner's savings goal.
  • Find as much loose change as possible. That means cleaning out the car, the sofa cushions, and the laundry room. Turn all of that spare change into a sweet bank deposit.

Assess your spending

When money doesn't have a purpose, it seems to disappear. Reviewing your expenses for the past few months can be an eye-opening experience, and it can also lead to major savings. Look to eliminate things like:

  • Recurring subscriptions you no longer use like gym memberships, streaming services, or monthly delivery boxes
  • Bills that you can call to re-negotiate like internet, cable, or phone
  • Excess spending on non-essentials like clothes or online impulse buys

Anything you decide to cut back on can be put directly toward your savings next month.

Keep savings out of sight

One of the most challenging things about saving money is constantly fighting the nagging temptation to spend what you've saved. Consider opening up an account at an online-only bank to store your savings.

That way, you won't be tempted to swing by the bank ATM (online banks don't have them), plus you'll need to log into a different website to view or transfer funds. Out of sight, out of mind means less opportunity to spend before you hit your goal.

The bottom line

When you're trying to save money, it can sometimes feel like the world conspires against you to keep spending. But using these money-saving tips for beginners can make saving feel like less of a chore and more like the freedom to spend on the big purchase you've been saving toward. The financial security that comes with saving money might be just the spark you need to further your financial education.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.

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Categories: Personal and Family Finances

Tags: emergency fund, financial solutions, personal finance, savings