Almost half of Americans spend all or more of their income each month. This is a precarious situation to be in, particularly if you are hit with an unexpected expenditure and have no savings to help you. Just as it is important to find affordable ways to stay healthy, ensuring that you stay on top of your expenditures each month is of paramount importance. By being aware of imminent outgoings (such as bills) making a budget each month, you give yourself the best chance of living within your means and potentially even saving money too.
Open a savings account
Only 39% of Americans have enough savings to pay for unexpected costs of up to $1,000. One way of saving money is by opening a savings account. Do your homework on accounts that will maximize your return on investment and make sure you can put aside a certain amount each month to save. Over a predetermined number of years, the interest gained on the savings will mean that you have not only saved money but earned some as well.
Use money management apps
Another effective, and increasingly popular, way of saving money is by using money management apps. These link to your personal accounts and can monitor your spending, offering you ways of saving money and/or providing you with an insight into your spending habits. For example, roundup apps ‘roundup’ each transaction on your card to the nearest dollar and place each roundup into a separate account of your choice. The idea is that you will not notice the incremental amounts being debited from your account, but, over time, these will provide a decent amount of savings. Other financial apps, meanwhile, can provide reports on your spending, showing you what you have spent each day and over the course of the month. These incentivize you to be more mindful of your outgoings, with impulse buys such as takeouts or coffees, along with unplanned trips to the store, very quickly adding up.
Plan your grocery shopping
When it comes to budgeting, planning your grocery shopping is key. Plan your trips in advance and make a list of all the things you need. This will prevent you from lingering in aisles trying to remember what you need, which is important: the longer you spend in a store, the more you will spend. You may find it helpful to pay with cash, as this acts as an extra incentive to make sure you stick within your budget and are not tempted by products you don’t actually need.
Lots of simple ways of being money-savvy
Being smart with money is important when it comes to living within a budget. This doesn’t have to be complicated. Simply write down all your outgoings and work out how much you have left to spend. Aim to put aside some money for savings, in case you are faced with an unexpected expense. Small, sensible steps can go a long way to helping you manage your money as effectively as possible.