The Importance of Saving Money: Tips To Save Money

There are a few things in life that we can't put a price on. Achieving your goals, saving for emergencies, for the future, and for retirement, are all important aspects of life that should not be ignored.

However, saving money is one thing we don't hear about very often without being prompted to do so.

This blog post will discuss how to save money and why saving money is an important part of financial stability. There will also be tips provided on how you can save more money without much difficulty!

The risk of not saving money

There are many risks of not saving money. One risk is that you will have less financial security and won't be able to afford an emergency expense like a car repair or medical bill. The thing about emergencies is that it's not a matter of if but when they will happen, so saving money is crucial to be able to handle these sudden expenses. They will come at you with no warning!

Another risk of not saving money is that you will have less financial security and won't be able to afford major expenses like paying for your car, your dream house, your wedding, traveling, and more without going taking on a massive amount of debt. It may seem far depending on your age, but you will also need to save for your retirement. Saving for retirement provides the financial security and peace of mind that you will have enough money to afford the lifestyle you want in your retirement. After all, you won't be able to work forever!

Ways you can start saving money today

The first way to start saving money is by assessing your spending. Here are few questions to help you:

• What do you spend your money on?
• How much of it do you really need?
• Can you eliminate anything?
• What are your goals?

Once you understand where you stand and where you'd like to be, it's time to start your budget! I recommend using the 50/30/20 budgeting rule.

Keep track of your spending

When trying to save money, budgeting is key. Budgeting not only helps you allocate your money but also can help to track how much money you are spending throughout the month.

Tracking expenses helps keep your budget on track. You can track expenses with any budgeting spreadsheet found online but if you'd like the best tool out there, check out You Need A Budget (YNAB) or Mint.

Once you've determined your monthly spending, it's time to see which expenses can be cut down or eliminated from your budget without any major consequences to your wellbeing.

Cut or downgrade your subscription services

Cutting down on your subscription services is one of the easiest ways to save money. Depending on what you subscribe to, this could be saving a few hundred dollars per year or more! In my case, I was able to trim my budget by $100 per month saving me about $1200 dollars a year by downgrading my phone and internet plans and by cutting my subscriptions to services I wasn't really using.

People often worry they will miss out on something if they cancel their subscription service or downgrade it to the basic plan but in reality, we are paying for convenience that many times we don't even use! There are subscription services for nearly everything these days... So much that the average American pays up to $237 a month for subscription services.

How much of it is really used though?

Some of the services you may be overpaying for include cable television, streaming services like Netflix, Hulu or Amazon Prime Video. I was stunned when I realized that I was paying for cable television and streaming services when I only watching videos on Youtube...

Pay attention to what you're paying for and make sure that the monthly fee is worth it! If you can get by without a service then save yourself some money and remove it or at least downgrade it. You'd be surprised at how much money you can save this way!

Cut down takeaway food

Another area where expenses accumulate unnoticed is takeaway food. We all know that eating out is way more expensive than it should be, but we often forget about the takeaway meals.

First of all, I don't really have anything against takeaways. However, what you spend on a takeaway meal will be significantly more than what you would spend eating at home, and that is saving money.

Secondly, takeaways are not as healthy as they could be. If saving money is one of your goals for this year and eating well-balanced meals is important to you too, then try packing your lunches for school or work. It'll be cheaper and easier for you to control your portions. Also, having control of what goes into your body is always a good thing!

Eating a healthy and well-balanced diet is essential for your health. Of course, you could opt for healthier takeaway alternatives but they come with a premium... $25 salads, anyone?

Not only will it save you hundreds of dollars per year but you'll also save time by prepping your lunches the night before. A packed lunch will also save you from the time spent queuing up to buy food.

Try it! I guarantee you will start saving money by reducing takeaway food and packing your own lunch. If you do it right, you'll save money and become healthier!

Pay off your debt

It can be devastating to have outstanding and you may feel like holding off from making payment, but you should pay them off as soon as you can.

Paying off debt is the first step to living debt-free. If you have any debt, make sure to pay off any high-interest debt like credit cards first and then work your way down the debt list.

Although it may not feel like you are saving money, debt payoff has the ability to help you save money in the long run because the sooner you are from that gruesome interest, the sooner your money starts working for you!

I remember when I paid off my student loans. It was such a relief to be able to focus on the things I cared about.

Distinguish between wants and needs

In this age of social media where everyone is flexing their "daily lives", it can be hard to stop ourselves from wanting everything they have. But the truth is that our needs are often neglected in favor of wants and this leaves us with a sad bank account.

The problem starts because many things we want are not actually things we need - like items on sale that you never planned on buying.  

Have you ever bought something on sale that you didn't actually need or plan on buying? Me too. Too often...

The key to saving money is figuring out how much of what we want truly fulfills a need.  

Are you looking to buy something because an influencer or a guru is showing it in their picture or because it would actually be of use?

I now ask myself if the item I am buying is a want or a need.

Here are a few questions you can ask yourself when you aren't sure under which category your next purchase falls.  

• Is this an item I am buying because it is trendy?
• Will I really use it?
• Will I wear it more than once?
• Do I already have something similar that is in good condition and could be reused instead of buying a new one?  
• Do I want this because it will make me feel better about myself?
• Do I need this to perform better or become more productive in my day-to-day life?  
• What more will it bring me?  

By asking yourself these questions, you can determine which items are wants and which items are needs. It's not always clear especially when we are constantly being bombarded by advertisements and encouraged to buy more.

Saving money is one of the most important steps you can take to set yourself up for a successful financial future. It sounds simple, but it’s not always easy. It may seem like a chore, but the benefits are worth it.

We all have our own unique challenges with saving money and keeping track of spending habits. However, there are many ways that we can save more without feeling like we’re missing out or having to make too many sacrifices in life!

Which method has been your favorite way to cut down on costs?

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