Saving money can be such an obscure concept that is overlooked when it comes to saving in smaller ways. This article ties into a previous article that I wrote on saving but examine saving from a different angle. To read the other article, click this link https://www.northernpeakfinancial.com/blog/why-you-should-care-about-saving-money.
Saving money may seem minuscule and not worth it if you can only save $5 or so a week, but that $5 can really add up. This article will focus on cutting back on things you are already doing to save money whereas the other one talks about saving the money that you have left over from bills. Most people only think of the money they can save after the bills are paid; rarely do people think about the savings they could have on any current bills.
The breakdown
Let’s break down what you are already spending money on. Knowing this will help you pinpoint exactly where you can save. List out everything that separates you from your dollar. And I don’t mean writing groceries, gas, monthly recreational payments, etc. I mean a full breakdown of where each dollar is going; bananas, ground beef, gym membership, music subscription, etc. Once you have a complete list of what you are spending your money on, now you get to do the fun part: find the savings.
If you notice that you are spending to much on specific grocery items, you can find other companies that more inexpensive products or you could look for items that you do not really need. Another great way to save money on groceries is finding coupons or purchasing items in bulk.
Next, you could join a rewards program for gas or even go to a gas station that offers less expensive gas. Remember, gas is priced per gallon so it may only look like you are saving a few cents per gallon, but you could potentially save dozens per fill up! Lastly, look at all the monthly subscriptions you have; see if there are any that you might not be using or are not using enough to make the monthly or yearly cost worth it. Cancel any that you do not use or barely use anymore. These small changes can really make a difference in your daily costs and will add up over time.
What to do with savings
Even if after breaking down your expenses, you are only saving $15 a week or a month, that is still extra money in your pocket that was wasted on an unnecessary or too expensive item. Instead of spending the money saved, take that extra money and add it to your savings. That is an additional $15 that does not have to come out of your spending money for retirement or a new car. $15 a month is $180 a year.
Try not to spend this extra money in your pocket and put it towards a savings goal. This is just a little extra money going towards your car, retirement, or a home renovation project can really make a difference in your financial life.
What would you do with an extra $180 a year?