Save money with these 3 simple steps
Saving money is a healthy habit. Think about it, if you are less stressed financially, then your health will be better off! But it is not always easy to start and maintain this savings habit, especially on a small income. By following these simple rules, you’ll see that it’s quite possible to save money and make things happen!
1 – To save money, establish a budget first
First, we need to know what goes in and out of our pockets. All taxpayers receive their net salary, i.e. government taxes are deducted at source as well as unemployment insurance contributions. You can therefore rely on this fixed and regular amount for your income. Then look at your expenses:
- Fixed expenses ex: rent, personal loan, hydro, TV cable, car, cell phone, etc.
- Variable expenses ex: restaurants, clothing, gas, unseen events
- Compare your NET income vs. your expenses: income higher or lower than expenses?
2 – Develop and maintain a positive attitude
It’s easy to find excuses not to budget! I don’t have time, there are always unexpected expenses so why budget, I suck at math, etc. But you need to motivate yourself to save by having a reason you care about, such as a trip, a new home, or just saving.
- Don’t be discouraged if your expenses exceed your income, there are always solutions
- Set achievable goals and believe in them
- You must stay disciplined and follow the budget
- See the final result
3 – SAVE MONEY
You have to discipline yourself to save but it’s important to keep living. You have to balance and prioritize. An analysis of your expenses is therefore necessary. What expenses can I cut? I already don’t have any unnecessary expenses so where can I save? How do you find clever tips?
- Make a grocery list and stick to it
- Go grocery shopping on a FULL stomach
- Plan your trips to be gas efficient
- Compare prices, take a calculator with you if necessary
- Don’t buy ready-made meals
- Cook the leftovers
- Turn off the lights if you don’t need them
- Don’t use the washer and dryer during “peak periods”.
- If possible, find an additional source of income
- Pay yourself first! Set up a pre-authorized payment plan into your savings account on the day your pay is deposited. Once you get used to these installments, you won’t notice them and your savings will grow quickly! Credit2Go can help you with this step. Click here for more details.
Wondering how to save money on a modest salary? Wondering how to save money on a modest salary? These 3 simple steps will help you regain control. All you have to do is set up a budget, adopt a positive mindset and simply save. Once your savings habit is in place, you’ll easily work with what’s left in your budget to get on with your daily life, while feeling a sense of accomplishment in reaching your goals!