Posted on August 9, 2016 in Saving Money
6 Easy Ways To Save More Money
For a while now, there’s been a heated discussion in the online space about millennials and saving money—if they’re saving enough, what’s stopping them from saving, how much they should be saving. Even with challenges like student loan debt and low income, millennials can still save without killing themselves. The key is to not overthink it—start small, automate where possible and keep it simple.
So, are you ready to break the no-savings cycle? Here are six easy and effective ways to save money.
1. Set Savings Goals
Saving money for the sake of saving money is a pretty un-motivating strategy, so it helps to stop and think about what that money can really do for you. An emergency fund provides peace of mind, while saving for a dream trip or a down payment on your first home can be an exhilarating prospect. Figure out what’s important to you, then set your savings goals to match.
To keep those savings goals front and center, you can use a financial app like Dobot. Not only does Dobot help you identify ways to save money by analyzing your income and spending, it also lets you assign savings to multiple goals. Instead of funding a generic “savings account”, you can fund the things you really care about and visualize your progress toward meeting those goals.
2. Monitor Your Spending
If you want to reach your savings goals, you’ll need to monitor your spending. Since a penny saved is a penny earned, you’ll want to review your spending habits to see where you can cut back. Is dining out consuming a larger portion of your income than you’d like? Are those daily lattes adding up to a shockingly significant amount?
Reviewing your spending habits can be as manual as picking through old bank and credit card statements, or you can make it easy on yourself by setting up a budgeting app to visualize your accounts and categorize expenses.
3. Make a Budget
As you familiarize yourself with your spending habits, it’s also key to make strategic decisions about where you actually need and want to spend your money—that’s where a budget comes in handy. Start by making a list of monthly non-negotiable expenses (rent, utilities, groceries, debt payments, etc.), adding your monthly savings goals, then tacking on extras like eating out, live music and yoga retreats.
If your income doesn’t cover your ideal budget, it’s time to start trimming some of the weekly fun stuff. As much as that sounds like a bummer, remember you can still save for fun things like music festivals and other fun activities. Plus, you can add back the fun activities once you cut down debt and hit your savings goals.
4. Look For Better Deals
It’s worth checking into different options every year for car, home, health and other insurance policies. Companies that bundle auto and homeowners insurance often offer discounts, and online tools allow instant comparisons for auto insurance quotes and homeowners insurance.
Similarly, if you have credit card, student loan or mortgage debt, it may be an opportune time to refinance those loans at a lower interest rate—which can save you a significant amount on interest over time. Just remember to put that savings towards your savings goals, rather than blow it on something you won’t even remember.
5. Embrace the Coupon
Spending money on certain things is a necessity, but that doesn’t mean you need to accept the sticker price of everything you buy. The art of saving money on small things has become more popular in recent years, thanks in part to sites like Groupon and cash back apps like Ibotta. Finding great deals on the stuff you need (and, let’s face it, sometimes just want) can actually be an enjoyable part of your savings journey.
6. Automate Your Savings
One of the easiest ways to save money is to make it a no-brainer. Figure out where you want your money to go, then set up automatic transfers so it happens regularly. Most financial institutions offer automatic transfer options from your checking to your savings account, or you can use an app like Dobot, which moves small amounts of money from your checking account to your Dobot savings account on a regular basis. Before you know it, your savings goals will start to become a reality—no effort required.
The good news is that saving money doesn’t have to mean big sacrifices and life changes. Using an app like Dobot to automate and simplify your savings is a great way to get started. Get set up once, watch your savings grow, and feel confident that you’re building a great habit—and a solid foundation—that will help you the rest of your life.