Saving money is difficult. If you’re like most of us, any money you have left over once you’ve paid bills, if you’re able to do that, is burning a hole in your pocket. Even when you know that you need to save that money, it feels impossible.
Getting started is the hardest part about most things, saving money included. Once you’ve gotten started, everything gets significantly easier, but you have to take those first steps. We want to help you take those first steps, so we’ve compiled a list for you. Just take it one foot after the other.
How to Start Saving Money
- Step One – The very first step is to create a budget, and we mean a detailed, spent-more-than-five-minutes-on-it budget. Figure out how much, like to the penny, you are spending on everything each month. That means rent, utilities, groceries, phone bill, car insurance, Netflix, and everything else. Then divide the budget into three sections: essentials (rent, bills, food, etc.), discretionary (entertainment, eating out, travelling), and savings.
- Step Two – Next, you have to set some goals for yourself. Why do you want to save money? What are you saving for? Are you trying to pay off student loan debt, or buy a home, or create an emergency fund? Set some realistic goals with real amounts attached to them. Then determine how much money you want to put in the savings section of your budget each month. Start small, maybe 5 percent of your paycheck, and build from there as you see fit.
- Step Three – Determining your priorities is the next step. Think about what is important to you, and what isn’t. Spend some serious time thinking about it. Look at your list of savings goals, and then rearrange them in order of most important to least important.
- Step Four – Start saving your money. Once you’ve figured out all of your amounts and created your budget, start putting your money where you want it to go. Simply having it all laid out will be the best way to motivate yourself and stay disciplined. Pay your essentials first then you can put the money in your “savings” section towards the top item on your priority list.
The Monmouth County bankruptcy attorneys at Garland & Mason LLC have helped countless people find the best solution to overcome their financial difficulties over the years.