Saving $5,000 a year only takes putting aside $97.00 a week!!
Six laws of wealth mainly refer to money. Something exciting is that the first two talk about saving. The number one law states that you should at least save 10 percent of what you earn and the second urges you to keep what you save to work for you by investing so that it multiplies. Saving is a very essential goal for human beings. Unfortunately, many people lack the discipline that’s required. Getting yourself a plan is sometimes vital to help you overcome this challenge of saving. This post will help get tips on how you can manage to save $5000 in 52 weeks. It will also give ways of reducing your expenses to find space for more savings every week. Let’s see how it goes.
Why do I want to save this money?
This is probably a question that should give you a reason to stick to your plan. Having a a bundle of cash amounting to $5000 is pretty much. It can allow you to do so much. For instance, buy a second car, a deposit for a new house, vacation abroad, boost your retirement or emergency savings accounts, and so on. Therefore, find a good reason and take up the challenge.
Tips to save $5000 in one year
1. Come up with a budget
Creating a budget is among the very first things you should give attention to. This is because it helps one to use their money properly and live within their reach. The budget not only helps plan on how you’ll use your income but also plan on how you can save and invest.
2. Keep an eye on your spending
It’s a good thing having a budget but, how sure are you that you’re sticking to it? Well, you definitely need to track how you spend your money. The best advice would be, keeping a record of your daily expenses. By the end of the month, check to see the expenditures and the things you spent on. By doing so, you will be in a position to identify the items you could be overspending on.
After knowing how much you may have wasted, you can now make adjustments by making corrections and, thus, get more to save next month. Many people have realized that keeping track of their monthly spending pushes one to carefully examine every coin used. Record keeping enables you to be more careful about how to use money, and it can be done through ways such as the use of a printable, pen and paper, a spreadsheet on the computer, or a budgeting app.
3. Cut your phone’s expenses
Do you know the amount you spend on your phone every month? Is it a lot? You need to find carriers that may not be as costly as your current bill. This will probably help save so much money in a year and upgrade your savings account. Choosing a cheaper carrier is one of the simplest ways to increase your monthly savings. One may hesitate due to the quality of service, but be sure it’s not as big of a deal at all especially when you’re more determined to save money. By doing some research on prices, you can switch from one of the highly ranked carriers in the US to a discounted carrier, and it can reduce your cell phone bill by 50% monthly. You could go from paying $120 per month to $60 every month. That gives $720 in one year! Is that not significant?
4. Cut on food expenditure.
Food is vital and you can’t miss this in your budget. However, there are many ways you can spend less on food. If you are the kind of person who goes to restaurants or buys lunch at work daily, then you can reduce the expense by having homemade meals; carry packed lunch. It doesn’t mean that you avoid restaurants entirely, but reduce the number of meals that you have outside. Besides, watch out how much you spend when eating out. Eating out adds up quickly. You can also save by having a shopping plan for food. It takes minimal effort, but it counts. A plan in advance will help avoid adding foods that are already in the fridge or the store. Write down a list before going to the store and stick to it. Plan out your dinners weekly. This will help from overspending at the grocery store.
5. Opt for less expensive insurance.
There are a lot of insurance policies and all are important. For instance, car insurance, home, medical, and others. Have you ever tried searching for cheaper ones? Do you know that you can save more if you transfer to a more affordable one? You can also look at the policies provided by each of the insurance companies you’ve chosen and make adjustments because you may be over-insured. Increasing the premium deductions on insurance like home insurance is a great way too to be utilized.
The bottom line
Saving money is very challenging, especially if you lack a reason for doing so. From the above information, you now know that you need a budget to give you a better plan to get started. Come up with a 52-week plan and try out the challenge. Open a savings account specifically for the plan and ensure you make weekly deposits without failure. There are various ways of reducing spending money and maximizing saving. For example, going for cheap insurance, carrying packed lunch instead of eating at hotels, planning before buying food, moving to a cheaper cell phone carrier, and many others. Try any of these ways, if not all, and you will notice a massive difference in your plan of saving $5000 in a year.