Money can't buy happiness... but it sure can buy ice cream.
TIP 1. Set a savings goal
Set a detailed savings goal and save 10% from each paycheck you receive. Tailor your habits according to your paycheck schedule. Remember to start with small achievable goals and then work your up to bigger amounts!
TIP 2. Cook at home
Food isn’t cheap. If you choose to eat at home rather than at restaurants, you can save up a lot of money. A TD Ameritrade survey conducted in April and May of 2020 found that the average American saved $245 by not eating out since the coronavirus pandemic began.
You can start by creating a weekly plan for home-cooked meals. You can also purchase more generic products at the supermarket instead of famous, brand-name products, which tend to be more expensive.
TIP 3. Reach 10% of your savings goal
Record your expenses. Recording your expenses can visually show you how much you are spending and saving. This can help you become more conscious about your purchases!
Try to find areas where you can cut down on costs. For example, you can share expenses with people on communal items, such as sharing a Netflix account or finding a housemate to split the cost of your bills.
You can also find free and cheap activities to do for fun. This can be hiking, playing board games, exploring the town, playing sports, and more.
TIP 4. Reduce credit card spending
Paying credit card bills in full every month can help with avoiding interest charges. One way to reduce credit card spending is to stop storing credit card data online. It's convenient to have your credit card information automatically saved. However, this will prompt you to overspend. Getting rid of that information can help lessen the temptation of impulse purchases.
Another tip is to place your credit cards in an area that isn’t as easily accessible. For example, instead of placing all your credit cards in your wallet, you can place one credit card in your wallet and leave your other cards back at home.
Try using more cash instead of credit. Once you see the physical cash being spent, it may help with reducing your spending.
TIP 5. Reach 50% of your saving goal
Reduce energy costs. Start by turning off the lights when you’re not using them, taking shorter showers, and using a fan instead of an air conditioner.
TIP 6. Consider thrift shopping
Secondhand shopping can decrease wardrobe costs. A lot of clothing items in thrift stores are of high quality and in good condition. It's kind of like treasure hunting!
TIP 7. Cancel memberships
If you are subscribed to many services such as Netflix, YouTube, Hulu, etc. it may be a good idea to cancel some of those memberships to save more money.
TIP 8. Reach your entire savings goal
Find a cheaper mode of transportation! You can tailor your habit-forming days according to your weekly schedule. Using public transportation, walking, and biking helps cut down the costs of expensive gas and car insurance. Consider using these modes of transportation on your next commute, such as carpooling, taking public transportation, biking, walking, etc.
Start here to download Dreamfora to add the customized plan “How much money can I save?” and Dreamfora will set you up with a comprehensive set of daily tasks and habits for you to follow.