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Everything comes at a cost, from housing to education. Whether you’re looking to rebuild your savings or just get back on track after an unexpected expense, cutting back on expenses will help you regain financial control fast. If you feel like your bank account is always running in the red or that money seems to disappear as fast as it comes in, you’re not alone. Money pressures are rising for many Americans and almost half of the country can’t afford an unexpected $400 bill. But with some smart spending habits, anyone can start putting more money in their pockets—and keep it there. Here are some tips on how to save money and not go broke.
Make a budget and stick to it
A budget is the first step to sorting out your money troubles—it doesn’t matter if you’re trying to save money or pay off debt, a budget is essential to make sure your money goes where it should. A budget is less about numbers and more about your lifestyle. It can help you understand where you spend your money, identify any areas you can cut back on, and see how much you have left to save each month. If you’ve never made a budget before, don’t worry—it’s not as daunting as it might sound. You can start with a simple notebook and pen, or use a free budgeting app to track your spending in real time. A budget doesn’t have to be something you do once and forget about—it’s something that should be revised and adjusted based on your lifestyle and income each month.
Track your spending
Before you can start cutting back your spending, you first need to know where your money is going. To track your spending, keep a budget notebook or use an app to track your spending in real time. This will help you identify areas where you can cut back on spending and help you build a savings plan. Once you’ve identified where your money is going, you can start cutting down on unnecessary spending. The first place you should look for savings is your monthly bills.
Don’t pay full price
Once you’ve built up a savings plan, the next thing you should look at is ways to earn money by not paying full price. On average, people spend $1,350 on unnecessary expenses every year, just on stuff they could have gotten for less or even for free. Start by searching for coupons in your area and start using them when you can. You can also sign up for rewards programs at grocery stores, gas stations, and even your cell phone provider to get discounts and coupons. Keep an eye out for sales at your favorite stores and sign up for store emails or newsletters to get alerts on when they’re having sales and what items are included.
Get smart about credit
Credit is a double-edged sword and can help you in some ways but also hinder you in others. If you use your credit card wisely, you can build a good credit rating and qualify for lower interest rates. If you’re not careful and don’t pay off your bill each month, your credit score will drop, and you’ll end up paying more in interest. Most credit cards charge a high-interest rate of 18% or more, which can quickly add up and put you in debt. If you want to start saving money, you’ll want to get your spending under control and pay off your credit card bill each month.
Stop Going Out to Eat
Eating out is one of the biggest ways people waste their money. On average, people spend $3,300 a year on eating out—that’s almost as much as they spend on food at home! Eating out also comes with other hidden costs like gas, parking, and even time lost at work. Make a rule to only eat out once a month and when you do, make it worth your while by going to a sit-down restaurant where you can order a meal that’s well worth the money. Avoid places like fast-food joints where you can’t get a good value for your money.
Only Buy What You Can Repay in 30 Days or Less
We live in a society where we want everything now and want to buy it all with a credit card. You should only use credit cards for purchases you can pay off in full. A credit card can help you earn some rewards and save money if done right. However, if you fall into the trap of buying things you don’t have the money for, you’ll only be digging yourself into a deeper financial hole. Stop using credit cards as a way of buying things you don’t have the cash for. Instead, make a rule that any purchase over $100 or $50 must be paid off in full before you start spending money on anything else.
Install a program to block impulse buys
Impulse buys are a real problem for many people and are a big reason people end up with extra credit card debt. On average, people spend $1,800 each year on unplanned purchases. If you want to start cutting back on your spending and saving more money, you should implement an “extravagance blocking program”. There are plenty of apps and programs online that you can install on your computer or smartphone that will block any site you tell it to—including those shopping sites where you’re likely to make impulse buys. Do this for any site that tempts you to make an impulse buy and you’ll be able to resist the urge to click and buy—and save yourself some money in the process.
Go through your monthly bills and cut out the unnecessary ones
If you’ve already made a budget, you should have a good idea of where your money is going each month. You can also check your credit report to see which companies you’re paying each month and if any of them are unnecessary. Once you’ve identified the unnecessary bills in your life, you can start cutting them out and put that money to better use. These are some of the best ways to save money and not go broke. Whether you’re trying to rebuild your savings or just get back on track after an unexpected expense, these tips will help you regain financial control fast.