{"id":215773,"date":"2016-01-04T04:00:30","date_gmt":"2016-01-04T11:00:30","guid":{"rendered":"http:\/\/getrichslowly.org\/blog\/?p=215773"},"modified":"2020-08-30T09:54:31","modified_gmt":"2020-08-30T16:54:31","slug":"how-to-save-money-each-month","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/how-to-save-money-each-month\/","title":{"rendered":"How to save money each month"},"content":{"rendered":"
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Is this the year to focus on saving more? If you’ve been disappointed when you’ve checked out your savings account balance, let’s change that this year by figuring out how to save money each month.<\/p>\n
Actually, advice on the topic of how much you should be saving differs based on who’s giving the advice. At a minimum, most people recommend saving 10 percent of your income. Dave Ramsey recommends saving 15 percent of your income as a good goal. Still others recommend 20 percent. However, no one will complain if you save as much as you possibly can.<\/p>\n
For the purpose of this article, let’s focus on 10 percent. And let’s pretend that you’re average, with an average salary, even though you’re anything but average!<\/p>\n
The median household income from 2015 was about $55,775 annually. Let’s try to save 10 percent of that, which is about $465 per month. At the beginning of the year, we probably won’t hit that much per month, but our goal is to save $5,500 by the end of the year.<\/p>\n
Can we do it?<\/p>\n
To actually save money each month, you need to find the money in your budget to save. Don’t even have a budget? Start there. Without a budget or spending plan, your savings goals will be covered by your bills and never see the light of day.<\/p>\n
After you’ve created a budget and started to track expenses, you need to have a system for savings.<\/p>\n
To leave your savings untouched by the end of the year, ask yourself:<\/p>\n
Once you have a savings system, let’s break down our yearly goal into months. By concentrating on different savings goals for each month and creating a savings snowball, we should have $5,300 saved by the end of year \u2026 almost anyone, on any budget, can do this.<\/p>\n
Spend this month focusing on all your fixed expenses. By cutting these fixed expenses, changes this month will impact the rest of your year.<\/p>\n
For instance:<\/p>\n
Monthly savings total: $181 (This will be the base savings rate for the first few months.)<\/em><\/p>\n Running savings total: $181<\/em><\/p>\n This month is one of the coldest of the year. Nonetheless, make a commitment to drop your thermostat. By dropping your home temperature 3 degrees or so, you may save up to $20 this month. Wear heavy sweaters, if needed. If you feel tempted to warm up your house, just remember that February is also the shortest month of the year!<\/p>\n Monthly savings total: $201<\/em><\/p>\n Running savings total: $382<\/em><\/p>\n Your tax refund, if you’re getting one, is coming soon. Last year, the average refund was over $2,800. Can you save just $500 in your online savings account?<\/p>\n Monthly savings total: $681<\/em><\/p>\n Running savings total: $1,063<\/em><\/p>\n This time of year is prime yard sale season. Declutter your house by having a yard sale<\/a> and save the proceeds. $200 perhaps?<\/p>\n Related<\/strong> >> Learn how to prep for a yard sale.<\/a><\/p>\n Monthly savings total: $381<\/em><\/p>\n Running savings total: $1,444<\/em><\/p>\n Make a commitment to pack your lunch at work all month. If you normally eat eight lunches out per month at $10 per meal and you can pack a lunch for $2, this saves you $64 this month.<\/p>\n Monthly savings total: $245<\/em><\/p>\n Running savings total: $1,689<\/em><\/p>\n If you live in the northern hemisphere, you can exercise outside for the summer (if you’re in a hot area of the US, use this tip for the cooler winter months). Cancel your gym membership for the next three months. Possible savings? $150.<\/p>\n Monthly savings total: $331<\/em><\/p>\n Running savings total: $2,020<\/em><\/p>\n Work on your grocery budget this month. First, create meals out of your pantry or any stored food. Next, meal plan ($5 Meal Plan<\/a> can help). Then, use all the other grocery shopping tips: Don’t shop hungry, stick to your list, use coupons, and buy store brands. These strategies, depending on your shopping habits now as well as your family size, can easily save you $150 this month.<\/p>\n Monthly savings total: $331<\/em><\/p>\n Running savings total: $2,351<\/em><\/p>\n Concentrate on your debts this month. Does it make sense to consolidate any of your debts? Can you transfer one credit card balance to a lower interest rate card? Can you refinance your home to get a better rate or get rid of PMI? This could result in savings of $200 per month, or more — much more. You’re also still saving $100 per month in the food category from your strategies you used last month.<\/p>\nFebruary<\/h3>\n
March<\/h3>\n
April<\/h3>\n
May<\/h3>\n
June<\/h3>\n
July<\/h3>\n
August<\/h3>\n