These 17 quick saving tips will help you reach your savings goals in record time and save money fast.
While saving during a pandemic may seem strange, in uncertain times setting goals can be a source of stability, to an extent. It can also allow you to plan for a brighter future, which should improve your overall well-being! So, if you are wondering how to save money fast, check out these 17 Tips to Increase Your Savings Fast.
This way you can quickly save money
Before you start saving money each month, you need to have a clear picture of your cash flow. This means that you need to consider all of your cash flows, including the debt payments you make, your monthly bills, and how much you save each month. We divide this process into several steps.
1. Learn to manage your budget and understand your finances
The most important thing to start saving fast is to learn how to manage your budget. When you control your budget, you control your money. Financial independence is essential if you want to achieve your short- and long-term savings goals. So Create a budget Start saving fast:
- Track your money for 30 days. This includes all income and expenses.
- Compare your monthly income to your expenses, the amount you currently save, or the amount you spend each month.
- Divide your expenses into fixed and variable costs. Fixed costs generally include expenses that are difficult to regulate, such as rent or extra costs. Your variable costs include such expenses as food, entertainment, and season tickets.
- Determine what variable costs you can save to increase the amount you can save each month.
- Periodically evaluate your progress and make adjustments as needed. If you feel a little tired, There are many management applications available So you can control your budget.
2. Pay off your debts (if you have any)
Before you start saving, you need to pay off your debt. Since interest accumulates over time, the longer you wait to pay off your debt, the more interest you will owe. Pay off your debt before focusing on your other savings goals.
Consider taking The 50/30/20 rule. Developed by U.S. Senator Elizabeth Warren, a Harvard bankruptcy specialist, the 50/30/20 rule is an easy way to manage your budget and pay down your debt. Here’s how it works:
- Use 50% of your income to meet your needs, i.e. fixed costs such as rent and utilities.
- Use 30% of your income to buy groceries, variable expenses for food, and memberships.
- Use 20% of your income for your savings. If you earn $2,500 a month, that means you can save $500. In one year, I paid off $6,000 in debt.
3. Open a special savings account
To save money quickly, you need to separate the money you use for your daily needs from the money you want to save. To do this, you need to open your savings account. This reduces the risk of drawing down the provident fund for daily expenses. This will help you stick to your daily budget while protecting your savings.
4. Your savings plan
If you have a steady monthly income, you should schedule your savings every month: You can schedule an automatic, permanent transfer from your checking account to your savings account each month. This way you reduce the risk of using this money for your daily expenses.
5. save money by scheduling bill payments
Note that you can also schedule bill payments. Companies often charge late fees if you don’t pay on time. So if you pay your bills before the due date, you can avoid extra costs.
6. Set your card spending limit
Want to save money quickly? Put a limit on spending on your credit or debit cards. This prevents you from overspending and encourages you to evaluate your daily purchases in advance. Many banks offer this service. On the N26 for example You can set daily spending limits Choose whether or not to allow ATM withdrawals from the N26 app in seconds.
7. Use an envelope management system to help you to save money
Another way to save money quickly is to use Dave Ramsey’s Envelope Management System. This system consists of withdrawing your monthly salary from the bank (yes, in full) at the beginning of each month and dividing it into different envelopes according to your management goals.
So you have envelopes for your fixed costs (such as rent and overhead) and variable costs (such as buying clothes, going to a restaurant, and shopping for groceries). If you pay for everything with cash, it’s impossible not to stay within your budget! But we guarantee you, it probably isn’t the most practical thing to do in 2021!
8. Save money on rent
Keep the rent It’s one of the fastest ways to save a few bucks a month. If you live alone, one of the easiest ways to do this is to share a roommate. This immediately cuts your rent in half, and if you live with two roommates, you’ll pay about a third of your current rent.
So, if you’re currently paying €1,300 per month for a 3-bedroom apartment and find a roommate, you’ll save €650 per month.
If you already live with a roommate, you can move to a smaller room. Rents are usually calculated on the basis of the room to be rented. This gives you significant savings each month. It will also encourage you to resell some of your furniture and give you a chance to make some money.
How you cut your rent naturally depends on your apartment amenities, your needs, and where you live.
9. Cut back on your expenses
Another tip for saving money quickly is to cut back on expenses. Electricity and gas bills make up the majority of your fixed costs. If you can reduce them, you will get a certain amount more each month. So:
- Change the power supply. Get the cheapest contract on the market and save hundreds of Euros per month.
- Replace light bulbs with LEDs. In addition to using 75% to 85% less energy than conventional bulbs, they last 15 to 25 times longer.
- Invest in a smart thermostat. In this way, you can organize your central heating system smartly and possibly save money.
- Seal all air leaks. Air leaks in windows and doors can increase electricity bills because radiators have to run longer to heat a room. Instead, seal those leaks with sealing tape to keep the warm air inside.
- If you own your own home, you should consider an energy renovation. There is much general help To transform your home into a well-insulated cocoon to reduce your carbon footprint.
10. Take extra hours
If you want to significantly increase your monthly savings, you can try to find an additional activity. It might be working a few nights in a bar or restaurant after work, finding some freelancing contracts, becoming a virtual assistant, or maybe babysitting.
If you have the funds, it can be very motivating to transfer all profits from these side businesses directly into your savings account. However, it is recommended that you are aware of the dangers of smoking.
11. Cancel unused subscriptions to save money
Subscriptions are incredibly profitable for many companies because once customers subscribe to their service, they are less likely to cancel, even if they use it infrequently.
This is mainly due to sunk cost bias. When applied to a subscription, the cost-cutting bias means that it’s hard to cancel a subscription that’s rarely used because you’ve already invested a lot of money. Therefore, canceling your subscription assumes that the money spent so far has been lost. The opt-out delay maintains the illusion that the subscription can still be used. In general, very few of us use subscriptions. That’s why it’s better to cancel unused subscriptions now than to keep them if you’re going to use them later.
12. Make small daily repairs
Trying to fix it yourself is a great way to save money — we’re talking about minor fixes, of course. Thanks to YouTube and the internet in general, it’s easy to find ways to fix many things in your daily life online. Whether it’s a leaky bathroom pipe, replacing a washing machine’s belt, or fixing a zipper on your jeans, it’s always better to fix these things yourself rather than paying someone to do it for you. Keep one or replace it entirely.
13. Think before you buy if you want to save money
Giving in to temptation is the biggest problem when trying to save money fast. Before making a major investment, whether it’s an impulse buy or not, give yourself at least three or four days to think it through. This prevents the impulsive part of the brain that seeks a dose of serotonin after a purchase from taking over.
If you really want to challenge yourself, try waiting 30 days before making major purchases. It’s a surefire way to keep track of your impulse purchases and give yourself enough time to make sure there aren’t any better deals out there.
14. Buying a car at the end of the fiscal quarter
If you want to buy a cheap car, usually the best time to buy is the end of March, June, September, and December. How does that happen? Because most car dealerships must meet certain sales goals to claim the bonus money. While these sales goals are set weekly and monthly, big bonuses are paid quarterly. This means that you are more likely to get a better deal on a car at the end of each fiscal quarter as the dealer strives to meet its quarterly sales target. Plus, even if it means swapping cars, why not go electric? very transfer bonus They were introduced to lower the bill and ensure a greener future.
15. save money by reducing shopping expenses
If you can manage to reduce your purchasing costs You’ll be amazed every week at how much you can save in just a few months. The best way to do this is to plan ahead for all of your meals. This means you can estimate exactly how much you’ll spend before you shop, reducing the risk of going over budget.
Another tip is to give up meat once a week. Since meat is usually more expensive than vegetables and plant-based products, it may help to cut back on one day a week. These small weekly savings add up over time.
Also, don’t forget to check out the products sold on the shelves below. Supermarkets often put your most expensive items at eye level to encourage you to spend more, and the cheapest ones that are closer to the floor are harder to find.
16. Designate one unspent day in the month
To get in the habit of saving, designate one day of the month when you only spend on fixed expenses. To do this, you can prepare all your meals with the ingredients you have at home, meet in the garden or at home and spend a quiet evening watching TV or reading. Once you get used to it, you can do this two days a month and maybe even one day a week to really increase your monthly savings.
17. to save money sell things you don’t use
If you want to start saving quickly for your vacation, it’s a good idea to list all your unused items and sell them on an online sales site like Le Bon Coin. This way, in addition to cleaning your home, you’ll also save small amounts of money that you can set aside for your next vacation. You can also start the other way around buying used things Often to achieve great savings and avoid overconsumption.