Remember when you used to save money every month when you were younger? You put a prize for yourself every month, to spend every penny you saved. Well, things are different now; the money you save is not for buying yourself a new toy at the end of the month! You have responsibilities and bills to pay, and even if you’re still a student, it’s always good to feel financially independent at some point. So, here’s how you can save money with five easy tips.
1. Start by tracking your expenses for a period of time.
You have to start by knowing how much income you get every month, and knowing how much you spend. This will help you track your spending habits, and know if you’re spending wisely or you’re spending in a reckless way.
2. Set your priorities and the things you need to take care of first.
After you started tracking your spending habits, you'll know what’s really being spent in the right place and what is being wasted. This will help you write down a list of the things that are crucial every month, like bills and daily expenses that you cannot avoid.
3. Set a certain amount of money to save.
Since you now have an idea regarding how much you spend, and what are your real expenses, it’s time to cut an amount of money from your budget, that you usually spend recklessly. For example, your takeaway junk-food or that shopping trip you didn't really need. This amount will be separated from your money every month, to know that you cannot spend any of it.
4. Put your savings in a place where they can grow.
Put your money in a saving account in a bank or buy a certificate of deposit. This way, you won’t only save money, you’ll also see it grow.
5. Keep your eyes on the prize.
Whenever you feel like giving up, always remember that the cuts you’re making now out of your income and the tight budget you’re living on is temporary. In a few months, you’ll achieve your goal and be able to enjoy the money you saved and worked hard on gaining.