One of the hardest things to do is to save money, when you get money you want to save it and the last thing you want to do is give up things you love in order to save some money. However in some cases you do not have a choice and have to make some sacrifice in order to save money and get your finances on track, you may need to save for a big occasion like a wedding or holiday, and you may be trying to get out of debt and save money to make sure you can pay off anything you need to.
If you are struggling to save money no matter what it is for or you are just looking for some ideas to help you out, then these few tips should help to give you an understanding of what you can do to start saving and where you can get started.
Keep track of expenses
One of the first steps when it comes to saving money is figuring out how much you are spending. You need to keep a track of all the expenses you have each month, that means any lunches or coffees you go for and anything you may get for the house, every expense should be noted. Once you have the expenses documented then categorize them all into the bills, groceries and utilities etc. this then allows you to see where all your money is going.
Work out what you have to work with
Your next step once you have the expenses is to then compare the expenses to your income. This will then give you an idea of what you have left over after your spending, you should be looking to have at least ten percent of your income to set aside for saving.
Try to cut some spending
Once you have checked your income against expenses, you may find that your expenses are too high for what you earn, so you need to start making changes and cutting your spending. You need to identify what you can afford to cut and what you do not need, if you are feeling drastic then maybe look at selling your car, this will give you instant income and save you the running costs of the car, only obviously do this if you have no options and do not need it. You can look for different companies that will buy your car if you want to sell it quickly. A lot of companies have the branding we buy 2020 cars so you know you can sell your newer car there too. You should mainly be looking to cut back on eating out so much and get rid of subscriptions that you do not need, this will allow you to make savings and increase what you can set aside.
If you are struggling to save money or you are just unsure where to start then hopefully, these few tips will give you an idea of what you can do and how to get started on your savings journey.