The first time you make it to a salaried position, you feel pretty excited. Chances are, you spend everything you make those first two paychecks because after all, you’re getting it again in the next paycheck! However, quickly you realize how easy it is to spend everything you have when you know you’ll be getting the same thing in a week or two.
In addition, there’s a chance that you will find expenses to fit your income. This can turn into a “the more you make, the more you spend,” type of situation. Getting ahold of that right away can help with saving money in the future. Today, we’re going to offer a few tips on how to start adding extra money in your savings account for each payment period.
Get Accounts & Make a Budget
The first thing that you need to do is get a savings account and checking account from a financial institution in your area. Following that, create a budget that you can use to keep in charge of what you are spending. Using apps like Mint will help you to see exactly what you are spending with your debit card and even credit cards, allowing you to tighten budgets as needed.
Pay Yourself First
It may seem intuitive to take care of expenses in the following order: bills, savings, and then extraneous expenses like clothes and food. Try changing this up by always putting your designated amount of savings away first thing when you get paid - even before you pay your bills! This makes it less tempting to chip off a little bit of your savings money in favour of using it for "fun" things like movies and restaurants. By putting money in your savings account at the outset, you're paying yourself before you pay your phone provider, your grocery store, or anyone else. It teaches you to prioritize yourself and your future needs!
With your budget in mind, you should set up an auto-transfer into your savings account with each paycheck. This should never be more than you can afford. However, adding just a little each month can help you build your savings over time. When you check your account, chances are you won’t even notice that it’s missing.
Avoid Impulsive Decisions
If you are out shopping, don’t spend money without thinking about it first. Impulsive decisions can hurt your wallet more than you think. This is especially true for getting coffee and other snacks out with friends. If at all possible, bring an apple with you! There’s no shame in saving money for memories over food.
Reduce Your Monthly Bills
If you have a bunch of monthly expenses, then cutting them back will help you save more each month. For example, if you pay for Netflix, Hulu, and cable, then paying for just one of those could save you hundreds of dollars a month. Also, look to save money on each electricity bill by turning the lights off when you leave the room and the air down when you’re not at home.
Find Cheaper Prices
If you really want to save money, then look for cheaper options for what you are currently using. For example, finding lower costs for your phone, car insurance, or health insurance could save you hundreds if not thousands of dollars a year. If you are a long-time customer of your phone or internet provider, chances are you will be able to get a better deal with them just by calling. Find out the prices that their competitors are offering, and use this information to negotiate a new, cheaper plan. It never hurts to ask, and many service providers will gladly give you a more affordable plan if it means they can keep a customer!
Looking For Help?
If you haven’t set up an emergency fund, then you might need a cash advance when something goes wrong. iCASH offers fast cash from short term payday loans, and can help you pay for emergency expenses while you wait for your next paycheck. Check out iCASH for options on how you can get a cash loan of up to $1,500.