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How You Can Save More Money This Year
Free Online Budgeting Tools
Mint.com - Free online financial management tool that allows you to track all of your financial accounts in one place, set a budget, manage your finances, track spending and monitor savings goals. A free iPhone app is also available.
Budgetpulse.com - Free online personal budgeting tool that allows you to monitor your income and spending, set savings goals and more.
Save More Money This Year
If you're living paycheck to paycheck, or spending as much (or more) than you earn each month, you may find it impossible to ever put any money aside for savings. But having some money available in the bank for emergencies and unplanned expenses can give you some much needed peace of mind.
Also, if you have goals like taking a nice family vacation, purchasing a new vehicle or buying a new fridge, it's good to have money saved up so that you don't accumulate more debt.
In order to be able to save more money, you need to either increase your income or reduce your spending. If you can do both of these things, then you'll have more money left over every month and your savings will grow faster.
If you don't already have a family budget, the first thing you'll need to do is to understand how much money is coming in and going out of your household each month. There are many online tools and software packages available to help you track your monthly income and expenses, including Quicken, Mint.com, and Budgetpulse.com.
These tools can help you identify areas where you are spending too much money and create a plan to reduce your debts and increase your savings.
Set a Savings Goal
When it comes to saving money, that old adage "a failure to plan is a plan to fail" comes to mind. Saving money is not likely to happen, unless you have clear goals and a plan for achieving those goals.
Whether you would like to save money for an emergency fund, to buy a new car, for a family vacation, or for buying Christmas presents next year so you don't have to put them on credit, you should ask yourself a few questions.
- What are you saving for?
- How much money do you need to save?
- When do you want to have the money available?
Once you have a clearer idea of your savings goal, it is much easier to come up with a plan to achieve that goal.
Let's say your goal is to save $1000 over the next year to pay for flights for the family to visit your relatives. To make the goal more achievable, break this figure down to monthly, weekly amounts or even daily amounts.
$1000 in a year = $83.33 per month = $19.23 per week = $2.74 per day
This will help you visualize ways that you might be able to save the money.
Ways to Decrease Expenses
If you haven't already done so, take a look at your bank statements and credit card bills to get an idea of where your money is going each month. It is often helpful to group the expenses into different categories when you're looking for ways to reduce your spending. For example:
- Housing costs - mortgage or rent, utility bills,
- Food expenses - groceries, take out, restaurants, coffee shops
- Entertainment expenses - movies, cable or satellite tv, concerts, etc
- Communication expenses - home phone, cell phone, internet, data plans
- Shopping - clothing, books, hobbies, toiletries, kids
- Transportation - gas, car insurance, car loan or lease, transit, parking, car maintenance
- Travel - vacations, getaways
- Other - bank fees, school trips, pet care, etc
Evaluate each category and look for possible ways to save in each area. For example,
- instead of buying books or movies, borrow some from friends or the library
- reduce gas and parking costs by car pooling or taking public transportation
- talk to your financial institution to renegotiate your mortgage or loan rate
- consider a debt consolidation loan to reduce interest costs on credit cards
- call your cell phone provider to see if you can negotiate a better plan, or shop around with other providers
- look into other providers and costs for your home phone, internet, gas, electricity and other monthly expenses. Often your own provider will be willing to give you a discount if you let them know you are considering moving your services.
- reduce the amount of take-out meals you eat each month by bringing your lunch to work more often and cooking more dinners at home
- make coffee at home or at work instead of frequenting coffee shops as frequently
- use coupons when you do your grocery shopping
- use online discount codes for online shopping purchases
- switch to a no fee banking account
Ways to Earn Extra Money
In addition to looking at ways to reduce your monthly expenses, you may also want to consider ways you can bring in some extra income to help you achieve your savings goals faster.
Here are a few possibilities:
- Get a part time job. You may be able to get a job working a few hours a week at a local store or small business, or even working from home.
- Freelance sites such as Elance or ODesk offer a variety of jobs in areas such as writing, admin support, translation, IT and programming, accounting, photography and graphic design. Even picking up one project every month or two can make a difference to your bottom line.
- Sell items that your family no longer uses or needs, such as children's clothing and toys, tools, books, DVDs, appliances, furniture, or jewelry. You can either sell them online, or through a local consignment store or at a garage sale.
- If you like to write, you can earn extra money by writing for sites like HubPages, Constant Content or Squidoo.
- Your kids can help to contribute family savings, especially for things that are important to them, like a vacation. Possible income sources for kids are paper routes, yard services such as raking lawns, weeding gardens, shovelling snow or babysitting.
- Clean out your closet to make money
No one likes to clean out their closet, but there can be cash hiding there in that trash! Tips on what's worth selling and how to sell the treasures you may find while cleaning out your closets.
Where to sell things you no longer need for extra cash
Where to Sell Online
Other Places to Sell
Amazon, eBay, Half.com
garage sale, used book store
Craigslist, eBay, Kijiji
consignment store, yard sale
Kids toys and games
eBay, Craigslist, Kijiji
kids' consignment stores, garage sale, childrens clothing sales
Lots of online gold and jewelry buyers to choose from
pawn shop, gold buyer, gold parties, jewelry shop
auction, garage sale, estate sale
garage sale, auction, local newspaper classifieds
Craigslist, Kijiji, eBay
auction, estate sale, garage sale
Important Savings Tip: Be sure to set up a separate account for your savings, so you can allocate money saved on monthly expenses, or extra money you receive, to that account so that it doesn't end up getting spent on something else.
If you have reduced a regular monthly expense, you can set up a recurring transfer to your savings account for the amount you would have regularly paid, and you won't even miss it.
Selling Things Online
- Craigslist Free Online Classifieds
List of all international craigslist.org online classifieds sites.
- Free Kijiji Classifieds
Use free Kijiji classifieds to buy & sell locally. Available in over a dozen countries, including Canada, United States, Germany, Japan and India.
- 5 ways to sell your old gold jewelry - Money - TODAY.com
What would you like to save money for?
Budgeting Tools from Amazon
Download this financial tool to help you track all of your financial accounts in one place, set up a budget, track your spending and savings.
A useful guide to helping you get your finances under control. Contains forms and tools for organizing and tracking your finances, managing a budget, repaying debt and much more.