Are You Struggling to Save Money in 2022?
***Disclaimer – I’m not a financial advisor, just a normal guy with financial success. The information shared here is purely for educational purposes only***
Do you have any savings? Believe it or not, we have very little control over our lives if you think about it. You could get hurt at any time (driving, exercising, doing various activities etc.), you could get laid off from your job, there could be unforeseen medical expenses that pop up, your house could catch fire etc. So it’s important that you cover yourself in case of emergency.
Majority of Americans Don’t Have Savings
Based on a financial survey this year, 56% of Americans do not have $1,000 to cover an emergency. So more than one out of two Americans don’t have a backup plan in case something happens, talking about living on the edge!
Needless to say, that’s not ideal. Things happen in life and you want to make sure you’re not caught off guard by things that you can’t control in life. How can you make sure you’re not part of the majority that have no savings and can cover yourself if something does happen?
Make an Effort to Save Some Money Every Month
A big part of saving is really developing a mentality to make a very concerted effort to save money. It’s a habit and mindset that you may have to develop over time. Some people are natural savers and frugal in nature, but for others, it may have to be developed and refined over time.
If saving money does not come naturally to you, then just try to save “something” every month, even if it’s a small amount. It may be something that you have to continue to plan and refine in how much money you save every month. For people who are natural spenders, going from overspending $200 a month to saving $10 would be a big improvement. He/she can then try to improve on that the following month until the goal is reached.
Many of the most successful billionaires share their secrets on how to be successful. One of the important traits many point to is saving money over time so you can be successful with your finances in the long run. Like instead of eating out 3 times a week, only eat out once a week and cook most of the time. Instead of buying name-brand things, consider buying good quality but non-named brand stuff.
Automate Your Savings
There are many ways to automate your savings so you don’t even have to think about it. For example, you can direct deposit a part of your paycheck automatically into a savings account that’s apart from your checking account that is used for expenses. You can automate saving a portion of your paycheck that directly goes into your 401k account or IRA account. You can even different apps that offer automate savings options when you buy things or offer to automatically invest a portion of your monthly direct deposit into an investment account.
Make More Money
If you have a problem cutting down on expenses, or if you believe it’s already at the lowest point of expenditure for you personally or your family, you can also try to make more money to help with saving more money.
There are many articles on the web that talks about how to make more money (like asking for a raise, get another part-time job, switching job, changing profession etc.), and or find a side hustle (like selling stuff, drop shipping, manual labor, blogging, monetizing YouTube etc.). But the idea is to make more money than you are spending, so the surplus can be saved and/or invested for your financial future.
Cutting Down on Expenses
Here some ideas for cutting down on expenses. Another way to save money is to cut down on expenses. Are there monthly subscriptions that are not essential or that you no longer use? Are you paying too much for cable TV each month? Are you paying too much for your cell phone service each month? Do you spend too much on that gym membership that you / and or your family don’t remember the last you used it?
Are you eating out too much? Are you buying too much grocery that some of the food goes to waste in your fridge or your pantry? Are you paying for video streaming services that you are hardly used or you can live without? Are you going out drinking too much at the bar, Starbucks, or bubble tea? Are you paying too much for your auto insurance? Are you paying too much for your rent or mortgage?
Are you spending too much money on travelling? Are you spending too much money buying clothes? Are you buying too much money buying shoes? Did you spend too much money buying that car or house that you can hardly afford?
The list of questions you can evaluate and ask yourself can go on and on. It may be helpful to ask people who are closest to you some of these questions to have them help you evaluate your spending habits. I list some of as ideas that hopefully will guide you in your self-evaluation.
In Conclusion
There isn’t a magical formula on a person becomes a great saver. Everyone has different needs and goals. A single’s goals of savings will likely look vastly different than a couple and a couple with three kids for example. But the benefits are universal when you are able to save and even better if you are able to invest.
Saving to have emergency funds is one thing, the next level would be having more than enough emergency funds to cover yourself for at least 3-6 months, AND have more money to INVEST in your financial future. That is ultimately where I would highly recommend and encourage everyone to strive for. I myself strive to have at least two years’ worth of expenses covered for my family of five, because life sometimes do throw lemons at you!
There are many ways to save money. There is a good saying in Chinese “if there’s a will, there is a way.” Is saving something that you are committed to doing for the betterment of your own financial future?
***Please feel free to reach out to us at contactus@savingformore.com if you want some free advice on your finance***
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***Disclaimer – I’m not a…