Making Cents: 4 Budget Tips for the Savvy Saver

Would you like to have more money in savings, either for travel, retirement, or a major purchase like a house or remodeling your house? Sure, we all would! But being able to save is easier said than done. Between necessary monthly expenses, revolving credit card debt, and unforeseen events, it can be hard to hang onto that little extra you were going to use as your nest egg. Here are some helpful hints for becoming a better budgeter so you can start maximizing your savings each year!

           

Tip #1-Write down what you spend

This one seems like a no-brainer, but in the age of credit card swipes and one-click online purchasing, we just aren’t keeping track of our expenses like we used to back in the old checkbook register days. Five dollars here for a coffee, ten dollars there for parking- it adds up fast, leaving you wondering where the money went at the end of the month. Try keeping your receipts in your pocket or purse throughout the day and then reconciling them to the balance information on your bank’s website or mobile app when you get home. For those of you who are tech-savvy, check out free spending tracker apps such as Mint or LevelMoney to keep your spending in check.

Tip #2-Set a goal

If you have a specific thing you are saving up for, you are more likely to actually save, according to the experts. Having a set goal in mind may be all you need to turn over a new leaf as a super saver. For example, if you and your friends want to have a Cancun getaway by the end of the summer, and you know your share is going to equal $750, now you know what you need to save and when you need to save it by. It’s as simple as that! Common goals for savings include purchase of a home or car, travel, a major appliance or electronic, or retirement. Pick your goal and stick with it!

Tip #3- Create a budget

This can be a tricky one, as we tend to think of our major bills only when mapping out a monthly budget. While rent, car payments and the electric bill are easy to remember when coming up with your budget plan, you also need to look at everything else you spend money on each month. How much do you spend on groceries? What about gas? How many times do you eat out per month? Do you get your hair and nails done at a salon? Be sure to write down literally everything you use money for in a given month so you can determine what, if anything, you can eliminate in able to work towards your savings goal.

Tip #4-Treat Yourself...Occasionally

So you’ve hashed out this comprehensive budget plan to help you reach your savings goal. Good for you! The only downside is that now you feel like you can’t do anything fun ever again. Just like dieting, saving money works best when you don’t feel as though you are depriving yourself. To turn saving into a good habit that lasts you for the rest of your life, it’s important that you don’t make yourself feel miserable over it. At the end of every week, do something nice for yourself- treat yourself to lunch or a latte, or make a (very small) purchase on a luxury item. This will not only boost your morale to get you to your ultimate savings goal, but will also prevent you from “bingeing” on a crazy-expensive purchase when you’ve reached your savings saturation point!

Do you have any handy money-saving tips that work for you? Please share in the comments section.