4 Tips to Save Money Even When It Seems Impossible
If you came across this article, it's because you feel broke! But there is good news: you are not alone! But there are also bad ones. When one feels broke, one does not think they the capacity to save money. Here are some ideas to change your mindset and give you opportunities to save money.
1. Open a Savings Account
If you currently have all your money in a checking account, open a savings one. That one is made for basic transactions. At that moment, you think you have nothing to put in it, but it does not matter. The fact is that you have to start with something; here is the starting point. When you put money in your savings account, you should not (under any circumstances!) touch it, except in case of force majeure.
Online savings accounts generally have very limited administrative costs and don't require a minimum balance. It's perfect if you have very little money to deposit at the beginning. The amount does not matter. It is the habit to enjoy what you have. Imagine saving money like a boss.
What if you already have a savings account but cannot save? Good question. We will explore it later. Think about why you have trouble saving.
2. Reduce Your Expenses
Nowadays, it's far too easy to spend money. Transactions made directly through our bank account can make us forget how much money we really waste. There is a gym, Netflix, the phone, and more. In fact, it's a whole bunch of different things. Look for any recurring transactions and determine which of them are actually important. If it's not something you need, you have to stop it. If you're paying for things with PayPal or some other type of virtual wallet, think about these transactions as well. Savings made must be paid into your savings account. As for your monthly bills, you should negotiate them. Sometimes 10 minutes of conversation with your interlocutor can save you money.
Do not say "it's useless, I'm not going to have anything anyway ..." Do it!
3. Reassess Your "MEANS"
According to the people's viewpoints, "being broke" doesn't always have the same meaning. You can be "without money," but have a good salary. You will always find 10 - 15 $ here and there. In this case, you can save money. Then, you can literally not have money on your bank account. For example, if you lose your job.
What kind of "no money" are you?
If it is the first type, you are probably not "technically" broke. You have just lived temporarily beyond your means. And that is not a bad thing. You have the power to reduce your excessive expenses and save money. Here are some steps to help you:
- Try not to spend money on some days. Don't spend money on Mondays, Wednesdays, and Fridays or any other variation of days you wish. It means no coffee, no Macdonalds, etc.
- Put the money you save into your savings account.
- Add up the money you usually spend on "problem areas."
It's a budget where your income - expenses = zero. You give each of your dollars a job. If you cover all your expenses for the month and you have 500 dollars left, you have not finished the budget yet. You have to tell those 500 dollars where to go, for example, in the savings account. According to many budgeting experts, "unemployed" money is likely to be spent — often negligently. Here's how to create a zero-sum budget:
- Methodically follow your spending for one month: Before you start, you need to know where your money is going.
- List your categories of current expenses: determine the categories in which the majority of your expenses are: Cinema, invoices, credits — everything!
- Assign your expenses to a category: Once you have written all your categories, review them each day, and assign each expense to the appropriate category. Add up each column to see your total expenses.
Seeing your expenses in black and white could shock you. For example, you may find that you have spent a lot more on restaurants than you thought.
OK, let's talk about the second type "to be really without money." This level is when you actually have no money. You simply do not have money to save after realizing your vital expenses.
Here are some ideas to help you:
- Rent a room in your house
- Rent your car
- Rent a smaller apartment or live with a roommate
- Sell clothes, furniture, electronics or toys you don't need
- Apply for a part-time job
Then, when you get back on your feet, be aware of your excessive expenses, and have the primary goal of saving money.
4. The Key to Saving (Even When You Don't Think You Can)
Half of the savings are money. The other half is the state of mind. It's 50/50! It's hard to save money when we're constantly digesting ads and information that tells us to spend it.
Remember, if you are determined, you will succeed!