5 Simple Money Saving Tips

5 Simple Money Saving Tips

5 Simple Money Saving Tips

Saving money is not easy for everyone. In fact, the majority of people out there today have trouble putting money aside for a rainy day. That is backed by the large number of people who are in debt across the country. Even if saving money comes naturally to you, you will still want to review the five simple money saving tips we have outlined for you in today’s post.

Track Expenses

If you truly want to cut back on what you spend, the first money saving tip is to track all of your expenses. Track each and every dollar you spend, even if it’s for a $2 coffee. Those $2 coffees can add up over the span of a month. If you grab a $2 coffee five days a week for an entire month, you are spending at least $40 a month on coffee. Organize all of your expenses into different categories, including gas, food, clothes, entertainment, mortgage, and bills.

Create a Budget 

If you haven’t been living with a budget, then you surely haven’t been saving money. You will only be able to put together a budget after you organize all of your expenses on a month-to-month basis. The budget must explain how all of those expenses compare to your monthly income. This will help you to limit spending and eliminate unnecessary purchases. When creating a budget, be sure to include expenses that happen often, but not every month (health care, car maintenance, home maintenance).

Plan to Save 

Once your expenses have been organized, and your budget has been started, be sure to put together a plan to actually save, or put away, money. All of your work will have gone for naught if you don’t wind up saving money as part of this project. The budget should have a category specifically for savings. Make an attempt to save anywhere from 10-15 percent of your income. If you are unable to save that much due to your expenses, now is the time to start cutting back on different things.

Pick Something to Save For 

Now you can pick something to save for in life. You should have short-term and long-term saving goals. For the short-term, you should be putting money into an emergency fund, or for a rainy day. Short-term savings also include money to buy a new car or to take a vacation. Long-term saving includes retirement, down payment for a home, or your children’s education.

Use the Right Tools 

A good savings plan is backed by the right tools. It is important to do your research and speak to a representative from your bank regarding the best money saving options and tools. Open a savings account with the best interest rate you can find. Also consider bank money market accounts, CDs, IRAs and more.

Having trouble saving money for a rainy day? Contact the experienced and friendly team at Tobin & Collins today to discuss your situation. We can be reached in Hackensack at 201-487-7744. Don’t hesitate to give us a call and schedule an appointment.