Spend Less. Live More
Are you ready to start a budget, but are not sure where to start? Budgeting can be overwhelming at first, but once you get the hang of it, it will seem like second nature.
After a while, your budget will become your habit and your money goals will come out on top. As you read on, you will learn the most important personal budget categories and subcategories to help you create a budget and plan for your future.
Have you heard of sinking funds? Sinking funds could be the number one game-changer to your personal finances. This little money hack will provide you with a clear way to save money and actually trick yourself into saving more. Learn how to use my sinking fund method to change your finances today.
Sinking funds help you set savings goals for specific purchases and can be turned into automatic savings so you don’t have to think about it.
Are you in debt? Around 80% of Americans are currently in debt according to a 2018 study by Comet. It is no wonder saving money is difficult and most shy away from it.
However, you can use my sinking fund method to start saving for just about anything including debt repayment.
The sooner you are debt-free the sooner you can start living and forget money stress. So why not start with a plan and make your plan automatic.
In this post, you will learn the who, what, when, where, and why of sinking funds.
(Updated Jan. 2021)
Hi, I’m Sarah and my husband and I have paid down over $100,000 worth of debt combined. We are close to being totally debt-free when we pay off our mortgage this year (2021). Read more about our story here.
If there is one trick that has helped us pay down debt and stay out of debt, it is tracking our spending.
Have you ever considered using a spending journal? You may be thinking, “Why would I want to add one more thing to my “To Do” list?”
Yet, tracking your spending could be the one aspect of your budget you are missing to put the “debt-free” back into your life. Nonetheless, journals come to mind when writing about feelings and yes, they are more commonly used for this type of writing, yet isn’t your money journey just as important as your emotional journey? These two aspects of life are intertwined immensely.
Writing down what you spend will give you a clear picture of where your money is going and help you solve your debt puzzle. I suggest making this the first step to beginning your budget and obtaining financial freedom.
Spending Journal: A written journal of all the money you have spent that week or month. I recommend tracking your spending for at least a week, but a month would be better and will give you a clear picture of how you spend. Moreover, once you have this in place you can begin to trim the fat off of your budget and use the extra money to pay down debt or save for an emergency fund or retirement.
Suggested Reading: No Money to Pay My Bills, Help!
Saving money isn’t always easy. In fact, many of us have no choice to save money and are living paycheck to paycheck. Nonetheless, there are many easy money tips and tricks to help keep your budget on track.
So learning to save money means keeping more in your pocket. Not to mention, you can build up your savings account with these simple tips. And it doesn’t have to be hard. There are ways to save money on a tight budget.
Unfortunately, over half of Americans do not have enough money saved to cover one month of expenses. According to a recent study by Bankrates.com, 20% of Americans don’t save anything and 47% only save 1-10% of their earnings. Yes, most people are one emergency away from going over the top into debt.
By starting a budget, you will learn how to save money on a daily basis. If you are stuck on starting your budget, get your free budget template here:
No matter what you are saving for, it is best to have a goal in mind. Learning money tips and tricks will help you keep money in your pocket and you will reach your money goals.
The list below features many ways I use to save money. With a family of four, it is easy to go over budget, especially on groceries for kids. However, I have found that if I continue to practice the tips below, I have a few extra bucks in my pocket at the end of the month and I hope you will too.
Related Saving Money Posts:
Use these tips to save more and build your bank account.
There are so many fun activities in cities or local areas that are free. Local parks, libraries, bike rides, and family walks are just a few. Many times libraries offer classes and celebrations that are free, but you must sign up in advance. If you are at a loss for ideas, here is a list of 55 Summer Activities for Kids that are Frugal or Free and 20 Free Family Holiday Activities.
I admit I use credit cards. Yet, I pay my balance off each month. I keep track of how much I am spending and set a spending limit for myself. In this way, I am not overspending and getting a surprise bill later.
The main reason I use credit cards is that I get discounts and rewards points, but I make sure to pay it off in full each month and once you are out of credit card debt, you can do the same.
Have you ever needed a gift for a party and had to run out to the store the day before? Once in this position, we will usually spend more, because we literally have no choice. Yet, if we estimate the number of gifts we will need each year, we can stock up and be ready.
You can also buy things on clearance at the end of the season for next year.
Buying lunch at your work cafeteria or going out daily can add up and eat up your budget. If you want to save money, it is time to start “brown bagging” it.
Moreover, my hubby packs his lunch daily, as did I when I was working. This will save you a tremendous amount of money each week.
Check out my free meal planning pack:
I’m hoping my post helps you save money! Consider saving money each month by setting aside money from your monthly salary and start living a frugal life. You will build your savings and have more money in your pocket. You will have less money stress in your life and be better prepared for an emergency.
Check out some other posts listed below on budgeting and making extra money. What tips does your family use to save money? Leave me a comment! I would love to hear from you. Until next time!!
