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4 Tips for Saving Money on a Budget

by Fallbrook Directory Mar 30, 2020

As the global pandemic continues to spread, keeping track of your budget is more important than ever. Creating and sticking to a budget doesn't have to be tedious, difficult, or limiting, though. We have a few tried-and-true tips to share with you that will help you save a few extra dollars each month.

 

4 Tips for Saving Money on a Budget

 

1. Write it all down.

 

Save your receipts and write down every dollar spent and earned. This may sound tedious, but keeping track of where your money goes will allow you to see the full-picture of your financial life. There are plenty of budget planners available to buy, but you could always use a basic pad of paper and a pen, or check out one of the many apps offered for your phone (some are free!). At the end of each week, make note of the different categories that your spending makes up, from food to bills to entertainment, and recognize what behaviors you might want to change. Honesty is the best policy!

 

2. Think long-term, not sacrifice.

 

We all love to treat ourselves now and then, but when a daily treat trips you up for future savings, it's time to think long-term. Psychologically, going without or telling yourself "no" or "never" can be difficult to do or stick with. Moving your mindset to think more about the long-term is a great adjustment that you'll find yourself enjoying. One less take-out coffee a week may sound difficult to do, but when you think of it as adding $5 to your emergency fund, it will add up quickly!

 

3. Add a buffer.

 

Give yourself grace and allow for slip-ups, especially in the beginning. Oftentimes, people will throw away their budget after the first mistake due to an all-or-nothing mindset. As you learn to live within a budget, give yourself a little extra room for indulgences. Cold-turkey quitting doesn't work for everyone, so adding in room for an extra takeout dinner for the first few months could make the difference between sticking to your budget in the long-run, or giving up in the first week. 

 

4. Ask a friend to join you.

 

While talking about money is taboo for many, ask a friend to join you in saving a few extra dollars a month. Odds are they will be happy to join you! Make the choice to go for a walk to talk and catch up, or take turns cooking at each other's houses rather than going out. These social situations add up quickly in your budget, and finding a friend who is happy to save with you is a great way to not only be held accountable, but to help encourage you along the way.

 

We hope you find these tips helpful. Don't get discouraged; every little bit counts. Saving the your coins in a jar will add up before you know it, and choosing to cut back on takeout to build your savings account will never be something you regret doing.

 

Happy saving!

 

Photo by Fabian Blank on Unsplash

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