5 Easy Ways To Save Money In 2021
Did you know, just over half of Americans claim they aren’t saving 5% of their income?
Being ready for life emergencies can hit hard when it comes to our personal finances.. well, not when you’re ready with your emergency fund. See, I have come across many people who describe to me their debt situation dragging down their finances every month.
Of course, the stories always have something in common. It almost always has something to do with an emergency they weren’t ready for like a family injury leading to a hefty medical bill or your pet’s medical bill. These things can put you off track easily, since they aren’t cheap.
So, what can we do to not worry so much about emergencies? Easy. Create a savings for these surprise expenses that most refer to as an “emergency fund.” How do we know how much you need to save to create this fund? It should be 3 to 6 months worth of your expenses. Now, how do we save money overtime for this new fund? Easy.
#1: Go Over Your Monthly Expenses
Going over your monthly expenses helps you track where you tend to overspend. Personally, it helped me realize that eating Chipotle every time I go on my lunch break was eating into my money (no offense to Chipotle, your asada is amazing!), so I had to make a change there. Think about it, going out for food daily can cost you easily $10 a meal. Over the course of a week, that’s $70 towards just eating out and $280 in a month.
That’s not to say you shouldn’t spoil yourself every now and then, but having a healthy limit helps you add more funds to your account.
#2: Cut Down On Any Unnecessary Expenses
It’s true. We all have certain charges here and there that stack up and turn into one big charge. Sometimes we have charges we don’t even require. For example, I know many people who go to Target for one item and return with a receipt with multiple items.. yes I’m talking to you.. and myself. How do you avoid this? Set a spending limit for yourself. Take only a certain amount of cash if you have to, but we must limit our spending habits to make our finances healthier.
#3: Create Your Personal Budget
I get it, everybody’s situation is different, that’s why your budget is personalized. I personally use Mint to create my monthly budget. Once you create your first budget based on your income and expenses, you really start to notice your finances growing.
When I first created a budget, I made sure to set money aside for my bills first. The thing is I personally treated my savings as a bill, so no matter what, part of my income was going straight into my savings account. The money I had leftover after paying bills and savings was for things to reward myself in such as food, games, etc.
#4: Actively Look To Save
This year I was able to save another $200 from my car insurance by actively looking for new providers when my contract was expiring. Well, turned out my insurance provider was still the best option, but I was able to save by simply updating my ZIP code, since I moved to a safer neighborhood.
Another great thing I recommend is looking into offers for items ONLY if you were going to purchase them anyways. It’s tough when you receive millions of emails for discounts.. That’s just the marketing teams doing their part in earning your attention. Sorry to break the news but the hard truth is that when a $100 jacket goes on sale for $70, you didn’t save $30, you spent $70. Purchases on discounts are great, amazing actually, but you should only purchase if they were essential expenses you were already bound to make.
#5: Create And Fund Your Savings Account
The hard part is always getting started. Opening up that first account and getting it funded is the first step, so what bank should you choose? The bank you choose ultimately depends on your preference. Many people stick to their personal bank for their savings whereas others will look for a higher yielding bank. I chose to go with Yotta Savings. They have fun games where users get tickets for every $25 they deposit towards their savings. That ticket is then enrolled into a lottery for a prize ranging from $0.10 to $10 million. The bank also offers FDIC insured interest-bearing accounts for you to accrue money.
Overall it is a great bank that has amazing customer service in my opinion. If you want to get started, use my referral code FABIAN310 and we both get 100 tickets that automatically enter into the following week’s drawings! : https://withyotta.page.link/kMYsE3E4tUk6rtoH6
At the end of the day, any bank you end up with will provide you the opportunity to start funding your savings. I would also personally recommend recurring investments weekly. Even just $50 a week comes out to $2400 over the course of just one year! Lastly, have fun saving, it is definitely a fun process and seeing your account grow overtime shows you a slight glimpse of what you’re capable of.
