You can stop spending and start saving money much easier than you think! Follow these simple steps below!
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Disciplining yourself to save money when you weren’t taught to or if you’re just as impulsive as I am, can be extremely difficult. I know it was hard for me to stop spending money and start saving it. After a while, you get tired of not having money, or even just feeling like you are going to get no where.
For us, we started out super young as a 19 and 20 year old, my husband already had our oldest daughter and money was tight! We have learned some hard lessons since then, and I want to share what we have learned to help us stop spending and start saving!
Stop Spending and Start Saving
Budgeting
Start Budgeting: The power of budgeting and sticking to it is incredible. For example, we have a family friend that makes half the money we do but has no debt and could give us cash for our house today if they wanted. That’s the power of budgeting.
What is budgeting? Simply, what you are planning and allowing for the money you bring in each month.
So, to start saving, you need to start budgeting and stick to it. If it’s not in the budget, you are not spending it.
Start by writing all of your monthly payments out on paper so you can really see what you owe each month. Is it more than what you bring in on your base income? Base income meaning what you are paid for straight time, no overtime or bonuses.
Try out this budget planner to help keep you and your budget on track every month.
Cut Out the Fluff
Cut out the fluff: If your income is less than your bills each month, it is time to start cutting some things out. Start by cutting out all the fluff. By fluff, I mean all the subscriptions and unnecessary luxuries.
Fluff
- Tv Subscriptions
- Music Subscriptions
- Magazine Subscriptions
- Apps Subscriptions
- Suspend or Close Gym Memberships
- Monthly Boxes – ex. FabFitFun
- Basically anything that is automatically taken out of your bank account each month whether it is 99 cents or $5, doesn’t matter, close it
Start by cutting out cable and turn to the basic Netflix package, you could be going wellll over $100/month down to less than $10. You can also search for FREE alternatives.
If you don’t regularly use the gym, cut it out of the budget. You are wasting money you could be saving or putting towards debt.
Monthly boxes, forget them until you are no longer struggling each month. Yes, they are fun, I love them too, but at what cost?
Cut out the monthly fluff and you will see a difference, I promise!
Stop Unnecessary Spending
Trigger warning: Stop buying coffee everyday! I know, I know, this one is scary and I hated it at first too. I promise its worth it!
In order to get your money to start working for you and your savings, you have to stop spending it on unnecessary items, call this the Bad Influence Fluff.
Bad Influence Fluff: This is the “extra money” you think you have every week/month. This is the money you spend on coffee or gas station snacks every morning before you go to work. If you are serious about saving, then the extra $5 you spend every morning should be going into your savings and not into $5 worth of snacks and sugar.
Spoiler: You don’t have the extra money and it’s not “just $5” if you are buying it every morning.
I know it seems like nothing, but $3 will add up. If you spend $5 every day of the month that is $150 you spent on something you could have brought from home.
Here’s what you can do instead
- Make your coffee at home – it’s not that bad, grab you some fun coffee syrups and my homemade creamer and make it even better and cheaper than the coffee house
- Buy your snacks in bulk from Costco or Sams Club to avoid stopping at the gas station every morning
- Pack your lunch – Taking leftovers from dinner is a great way to save money and keep you away from fast food – $10/day for a month is $300 that could be going towards savings or debt
Another Tip: Plan out your meals by the week and go grocery shopping only once a week. Multiple trips to the grocery store will cause you to spend more money in the long run, especially those “it’s only $3” items you throw in the cart.
Trying out Instacart (we use them for every shopping trip) will save you even more money because they do the shopping for you and save you from the impulse purchases. You can even get free delivery with your first purchase! Check them out here!
Start Saving
Save 10% of Every Paycheck: Now that you have cut out everything that is stopping you from saving, it’s time to save 10% of every paycheck.
Examples of what you should be saving every paycheck:
- $1000 = $100
- $800 = $80
- $462 = $46.20
- $100 = $10
Check with your HR department, you should be able to automatically put a percentage of your paycheck into a separate account. Think of it like an auto pay to your savings.
If You Don’t Have a Savings Account Check These Out
PROTIP: If you have a hard time not spending your money, DO NOT link your savings to your personal checking where it is easily accessible. You will spend the money just as fast as you save it.
Try a savings account like Capital One Savings. There are plenty of account options to fit your life and they are super easy to work with. Many of these savings accounts are interest baring and they are accessible from a free app. Best part they only allow up to 6 withdraws before it starts to charge you fees. This will help you keep the money in the savings and not spend it on coffee.
Now, I know changing up your normal routine can be scary. Change is scary for everyone. But, if you are going to make anything happen, change is necessary.
If it helps, take one full week and write down everything that you spend money on. Could be anything from a tank of gas to a pack of gum. Writing every single thing down will give you the perspective you need to see how much you actually spend. Cutting out the fluff will help you save.
Hopefully these tips will help you see the possibilities of intentional spending and saving. If you try these tips, share about them and tag me on Instagram! @organizedchaoschronicles
