Top 5 Money Saving Tips To Utilize Now

In the United States, many people are focused on making money and finding careers that will allow them to live financially comfortable lives.

However, many people are fixated on making money in the present rather than saving money for the future.

Without saving money, many hard-working individuals will be left in a financial bind when they retire.

There are many easy ways that you can combat this.

Saving money does not have to be hard.

By making a few small adjustments, you can live a life of financial success and mental ease.

1. Budget Now, Relax Later

What is budgeting?

Budgeting is one of the simplest ways to ensure that your money is utilized in the right way.

By keeping track of how much money you spend on specific things, you can gain a better understanding of where you need to budget the most.

As you record your spending, you may realize that you are overspending in certain areas.

By cutting back on unnecessary expenditures, you will then be able to save more and live better.

Tracking Spending

There are many ways to track your spending.

You can use traditional methods, like an Excel spreadsheet.

There are also many new phone apps that track spending, such as Mint, GoodBudget, and Mvelopes.

These new apps allow you to maintain your budget anywhere by just clicking a button on your phone.

Some apps, like BillGuard, even do double duty by tracking your spending and protecting your cards from fraud.

 2. Savings Accounts

If after budgeting you still find it difficult to save your money, an automatic savings plan might be the best thing for you.

Under these plans, the money is automatically withdrawn and put into a separate account each month.

Types of Accounts

There are two main types of automatics savings accounts: traditional savings accounts and retirement accounts.

While savings accounts help you to save money for short-term use, retirement accounts allow you to save money for the future.

Retire in Style

The graph below shows the average 401(k) balance for Americans.

According to a recent CNN article, 401(k) savings hit a record high in 2014.

More Americans in the workforce are choosing to invest in their future with a 401(k).

In addition to the 401(k), you can also save money for retirement using a Roth IRA.

A recent Times article discussed the flexibility of using a Roth IRA.

An upside to choosing a Roth IRA is that withdrawals are tax-free. 

The graph below shows the average amounts of retirement savings broken down by age.

By starting to put money into a retirement savings account, millennials can set themselves up for a more profitable future.

3.  Plan before You Purchase

Many Americans go over budget as a result of impulse buying.

These types of purchases are usually instigated by sales that seem too good to be true.

Do not be lured in by a sale.

Although it may take some discipline, avoiding sales will help you to secure your money for the future.

4. Cut Coupons

By cutting coupons, you can take advantage of decreased prices for products that you have already included within your budget.

The chart below shows the many different places you can find coupons.

5. Decrease Mindless Spending and Increase Quality of Life

Many of your monthly payments are most likely going towards mindless activities such as watching television.

By cutting down on the monthly subscriptions for Hulu, Netflix, or Amazon Prime you can save over $1000 a year.

Buy groceries only as much as you need.

It’s always better than throwing away half of the stuff in the trash.

You can save on bulk packages, but keep your eyes on how much you really need.

Cook at home rather than eating out.

Not only does it help you save money, but also keeps you healthy.

So, save your money and have a quality life without any stress.