We all have things we want to work on. For me, it is learning how to save money effectively. This change in habit will not be immediate, but a work in progress. Still, with graduation approaching understanding how to save money is a necessary skill.
However, the arrival of spring means that the weather will soon be improving as well. When thinking of spring and summer, activities such as traveling, shopping, barbeques, sporting events and the beach come to mind. The variety of things to do makes saving money more challenging. But I have found that while instant gratification is nice, it feels even better to be able to purchase an item and still have a good amount of cash in savings.
Here are 6 quick tips on how to save money while still enjoying your free time:
1. Record Your Expenses
In order to save you need to know how much you are spending. Bank of America suggests recording your expenses for one month. After this period you should organize the amounts into categories and get the overall amounts for each category.
2. Create A Budget
Once you have a clear understanding of your monthly expenses, you can incorporate a budget. A budget can assist you in knowing how money is spent, limiting over- spending and setting aside a certain amount to be placed in a savings fund.
3. Set Savings Goals
Start by listing and determining how long it will take to reach each goal. You may want to have separate lists for short-term and long-term goals. These lists could include saving money for vacation, a car, or student loans (scary though, I know).
4. Do You Need An Item Or Want It?
Let’s be honest, sometimes we buy things just because we can or we are not truly sold on the item but we purchase it anyways. This can sometimes lead to buyer’s remorse. When shopping, ask yourself whether you actually need to product or not? If the answer is no, hold off from buying the piece if you are not absolutely in love with it. Depending on the item, taking some time to think may be helpful.
5. Spend Wisely
This can refer to investing in key pieces, shopping at discounted prices, shopping off-season, or browsing the sale rack. Sometimes paying more for an item will actually save you money in the long run. Look into shopping off-season. Try purchasing apparel at the end of a season when stores are ready to stock up on items for a new season. Why pay full price for a pair of boots or a coat when you can get it for a nice sale price? Lastly, do not hesitate to check out stores such as T.J. Maxx, Marshalls or thrift stores.
6. Eating Out
This does not mean saying goodbye to eating out. Take a look at your bank statements to see how much you may be spending monthly on eating out. If you are not happy with the amount, cutting back is always an option. Another alternative is to use coupons and discounts. Changes do not have to drastic, start small if you need to.
Check out dailyworth.com and dailyfinance.com for all things finance related.