Finance Tips to Help You Save Money and Get Ahead

Saving money can be hard if you don’t have the right strategies in place, and that’s why we’ve put together this list of finance tips to help you save money without sacrificing all the things you enjoy. Saving money may seem overwhelming at first, but once you start getting into the swing of things, it can become second nature, and it will be easier to meet your savings goals on a regular basis. Use these tips to get started with saving money today.

It’s no secret that paying off debt and saving money are essential to achieving financial freedom, but it isn’t always easy to know where to start or how to save the most. With some discipline and determination, though, you can make significant strides toward your financial goals.

Learn the basics

When it comes to personal finances, not many of us have a handle on them. That’s okay! It’s natural, especially when we are young, that we don’t know much about managing our hard-earned cash. But there are things we can do to be better at it. Luckily for all of us, there are many resources out there that can teach us how to manage money better—and faster than ever before. To be a good saver, you first need to understand what’s going on with your finances. Learning about budgeting and financial management basics is a great place to start. As an entrepreneur, it’s important that you live within your means. It will become even more important as your business grows, so learn how to handle your personal finances before getting into business.

A few basic guidelines for any newbie, Set up a budget, keep track of expenses, don’t take on too much debt and make sure to pay yourself. And remember: If you spend less than you earn, you should have some extra money at the end of each month—and hopefully over time—that can go toward saving or investing in your business. If your debts are giving you sleepless nights, then getting rid of them is a smart idea. A debt-free life can be a dream come true for many people – but it does take financial discipline and patience. It may seem like hard work now, but once you’re free from debt, it will feel worth every penny.

Set up a budget plan

Figuring out your income, expenses, savings goals, and more will make it easier for you to take control of your finances. With a budget plan, it’s also easier to see where your money is going each month. With that information at hand, it’s much easier to figure out ways to keep extra cash in your pocket each month. Before you start working on creating a budget plan, take some time to consider what’s important to you. The first step is deciding what percentage of your income is going toward certain areas, such as rent or if saving for retirement is a priority for you, make sure your savings plan reflects that goal and adjust accordingly if needed.

Next, decide how much you’re allowed to spend on entertainment, clothing and food—and stick to it! Finally, divide up your debt payments so that nothing gets too overwhelming. Budgeting doesn’t have to be difficult; just figure out what you can afford based on each payment’s percentage of your income. Then, pay yourself first by setting aside some cash before anything else. You’ll thank yourself later when your credit score improves and you’ve saved more than expected.

Set Goals and Put Them in Writing

The biggest step you can take to achieving your financial goals is setting them in writing. This way, you will have tangible examples of what you want out of life as well as a tangible way of determining if you are on track or not. For example, say one of your goals is to own a home in seven years’ time. By setting it in writing, you give yourself a sense of urgency and accountability.

Goals should be written down, and they should also be SMART. If you’re trying to lose weight, then a weight loss goal doesn’t help you get any closer to that end. I want to lose five pounds in two weeks is better—it gives you a specific amount of weight loss per time period, along with a deadline.

If you don’t write down your goal, how do you know that buying a house is really important to you? A written goal also helps keep it top-of-mind. If something else comes up that diverts your attention from buying a house (like an illness or job loss), having your goal written down makes it easier for you to get back on track. And finally, when you write down your goals, you make them more real. It becomes easier to imagine yourself actually achieving those things because they’re no longer just thoughts floating around in your head—they’re words on paper.

Don’t Use Credit Cards Unless Necessary

If you’re carrying credit card debt, paying interest fees on a balance that continues to grow will keep you from building wealth. Credit card debt is incredibly common in our culture, but it’s also a leading cause of stress. Many people use their credit cards without any idea of how much they’re spending each month or what their interest rate is. If you don’t have cash in your bank account to pay for something, put it back on the shelf. And if you do carry a balance, try not to spend more than 20 percent of your monthly income on interest payments. It’s hard to save money when you owe someone else.

Credit cards are a convenient way to pay for things, but they come with high interest rates. If you’re not paying off your balance in full each month, you’re going to end up paying more than if you used cash. This can cripple your finances quickly. Always avoid using credit cards unless necessary. While there’s nothing wrong with buying yourself a new dress or pair of shoes every now and then, make sure they fall within your budget so you don’t incur unnecessary interest charges. Everything has to be in limit.

That said, credit cards are a form of debt: if used irresponsibly, you could end up paying high interest rates on purchases that cost less than a trip to your local coffee shop. If you do decide to get a credit card, make sure it has a low interest rate and check whether it offers perks like rewards points or extended warranties.

Write down everything you spend

The easiest way to keep track of your personal finances is simply by writing everything down. Keep a notebook with you at all times and write down every expense, no matter how small. This will allow you to clearly see where your money is going each month, which expenses can be reduced or eliminated, and where possible income should be added in. By tracking your expenses in detail over time, you’ll quickly gain an understanding of how much income you need in order to cover your costs. If you find that your current income doesn’t quite cover it, then it might be time to look for ways to increase your earning potential.

Consider other part-time jobs, freelancing gigs, or even moonlighting as a second source of income. For many people, making extra money isn’t easy; but once you have it, managing your budget will become a lot easier. If after analyzing your monthly spending habits you discover that there are unnecessary luxuries on which you spend too much money (such as eating out frequently), consider finding ways to cut back on these indulgences so that more funds are available for necessities like housing and utilities.

It may not seem glamorous, but keeping track of your spending and cutting back wherever possible can make a big difference in helping you achieve financial independence. And if tracking all of your expenses sounds like too much work, then try using apps instead—they’ll do most of the work for you.

Automate Your Finances

One of the best ways to improve your finances is by automating your savings, so you don’t have to worry about it. Set up automatic transfers from a checking account or credit card into a savings account so that you never even see it, unless you want to. Your hard-earned money will grow year after year without any effort on your part. Choose an online bank with low fees, which can help boost returns over time. It’s also a good idea to automate your bill payments. That way, you won’t be tempted to spend your money on impulse purchases—and those bills won’t go unpaid.

Know the Difference Between Needs vs Wants

It might sound harsh, but a simple way to save money is by distinguishing between needs and wants. Do you really need that new pair of boots or could you get away with what you have for another season? Can your current phone get by another year without an upgrade? And don’t forget about necessities like food, clothing, housing, health care, education and transportation. If it isn’t on that list, it’s likely a want. The next time you find yourself shopping, ask yourself if it fits into one of these categories—and if not, put it back on the shelf. Your bank account will thank you.

Know What You’re Spending: When was the last time you actually looked at your monthly credit card statement? It may be hard to believe, but many people don’t know how much they spend each month in certain areas (groceries, gas, etc.). This lack of awareness can make it harder to stick to a budget because you won’t know how much room you have left for spending in other areas. So take some time to look over your credit card statements from last month and see where you spent most of your money. Then, create a plan for saving more in those areas while still meeting all of your expenses.

Cutting expenses should be your first step if you’re looking to improve your financial situation. This doesn’t mean slashing all of your costs, but it does mean finding ways to reduce discretionary spending.

Invest in yourself

If you want to improve your finances, invest in yourself. In other words, don’t be afraid to go back to school, take a course on business development or brush up on your foreign language skills. There’s no greater investment than investing in yourself. If it helps, look at it as an investment into your future—and one that will definitely pay off. Not only will improving your skill set make you more valuable in your current job, but it could also help open doors for advancement opportunities down the road.

If you’re trying to break into a competitive field, investing in your education is key. The more skills and credentials you have, the more attractive you become as an employee or businessman. Investing in your degree is therefore also an investment in yourself—it will pay off over time. Before pursuing a graduate or professional degree, it’s important to determine if it’s going to make a real difference for your career goals.

Don’t Fall Victim to Scams/Frauds

Every day, scammers across the country try to trick people out of their hard-earned money. Whether it’s an email from a Nigerian prince or a phone call from someone pretending to be from Microsoft offering free tech support, there are always people looking for ways to take advantage of other people. Luckily, scams like these are easy enough to avoid with some common sense.

First off, never click on links in emails from unknown senders; even if they seem legitimate at first glance, more often than not they lead straight to a phishing scam site that could steal your information. Instead, type URLs directly into your browser to visit websites—this way you can tell right away whether or not something is fishy. And finally, don’t give personal information over the phone unless you initiated contact with a company directly; many fraudsters will use social engineering tactics to get personal details from unsuspecting victims over the phone.