Written by Jean Dempster, Central Region Microenterprise Specialist and Regional Manager
Saving money is one of those tasks that is much easier said than done! There’s more to it than spending less money, although that part alone can be a challenge.
Here are some tips to set realistic goals, keep your spending in check, and make saving a priority!
1. Set savings goals.
If you want to buy a computer, find out how much it costs; if you want to buy a house, determine how much of a down payment you will need.
2. Establish a timeframe and a savings plan.
Write down when and how much you want to save per week or month. Consider adding your goal dates to your paper calendar or phone calendar app to help keep you on track.
3. Work on your debt at the same time.
When you use less of your money to make debt payments, you can start to put more into savings.
4. Keep a record of your expenses.
Write down everything you spend your money on for a month. Be as detailed as possible, and try not to leave out small purchases.
5. Trim your expenses.
Take a hard look at your spending records after a month or two. You will probably be surprised when you look back at your record of expenses: $50 on coffee, $100 on clothes!
6. Work on your budget each month.
Write down a budget or spending plan so you know each month or each paycheck how much you can spend on any given thing or category of things.
7. Look at your savings goal.
Subtract your expenses from your take-home income. What is the difference? Does it match up with your savings goals?
8. Pay yourself first!
Don’t say that you’ll save whatever is left over at the end of the month. Deposit your budgeted savings into an account as soon as you get paid.
If you are interested in learning more about budgeting, building your savings, and repairing your credit, check out our tuition-free workshops and trainings!