If you’re like many employed people, chances are you’re living from paycheck to paycheck. Honestly speaking, it doesn’t feel so good on so many levels because you don’t get to see where your money goes.
This is even harder if you’re planning to tie the knot with the love of your life. I mean, do you want to cross the next stage of your life when your finances are all over the place? Of course not.
Wouldn’t it be so good to learn how to save money from salary that you forget it’s payday? I know this sounds like a fairy tale, but it’s possible.
Stick with me to the end, and I’ll teach you 17 practical saving tips that will help you gain financial freedom.
1. Start Small
All these money-saving tips will sound so exciting, and chances are you’ll want to try out all of them immediately.
While 100% effort and commitment will give you 100%, what’s important is consistency. Therefore, it’s advisable to start with baby steps and push yourself further every week. Saving $10 a week may seem like a waste of time, but I promise it’s a sensible place to start. Before you realize it, you’ll be at $100 per week and so on.
However, don’t wait for a perfect moment to start saving. Get started even if you have to start with a dollar.
Now that we’ve cleared that on the way, let’s get down to business.
2. Know Your ‘Why’
One of the greatest secret tips on how to save money from salary is knowing WHY you’re saving. Is it to pay off your debt? To boost your kid’s college fund? Or to quit your 9-5 job and become your boss?
Before you start saving, take time to think about why you’re committing to saving. Having the end goal in mind is what keeps you going during difficult times and gives you the discipline to overcome temptations.
Write down your goal or even create a vision board of what you’re trying to accomplish.
3. Pay Yourself First
Before you pay your bills or cater for your expenses, pay yourself first. You can set up a direct deposit into your savings account from your paycheck to avoid any temptation. Alternatively, you can create an automatic savings transfer from your cheque to a saving account.
This allows you to plan your budget without your savings. With time, you get used to the ‘new cheque,’ and saving becomes easier.
Setting savings aside is best way to save money from your salary every month. Otherwise, you’ll keep using all your money on your expenses.
4. Cut on Grocery Shopping & Take Outs
If you’re just starting out, this is the easiest tip on how to save money from salary. A study by the Bureau of Labor Statistics showed that the average money spent on a single household on takeout is $3000 per year.
Therefore, avoiding takeouts is a good place to start your saving journey. This may mean meal planning to avoid any temptations. You can check out Instagram pages like @mealplans to learn some tips on meal planning. This ensures you eat a healthy diet, saves time, and saves money.
Another brilliant way to save money is by utilizing what you have before buying more. You possibly have food worth a week in your fridge; consume this food before shopping for more. Also, note that just because the label says the food is past the expiry date, doesn’t mean it’s expired. Inspect any food before you trash it.
Lastly, buy your grocery in bulk (preferably weekly). This gives you the benefit of the economics of scale (buying less for more). It also allows you to save on gas that you’d otherwise spent on your way to the groceries every day.
Bonus: Always compare the prices on different groceries before you shop and buy from the one with the lowest prices. This may save you a dollar or two in your weekly grocery shopping.
5. Cut on Entertainment
According to The Simple Dollar, the average American household spends at least $2,482 on entertainment every year. Therefore, you can save a significantly big percentage of your salary by reducing your entertainment costs.
There are several ways you can save on entertainment costs. For example, instead of traveling, you can find other ways to have fun. Here are some ideas:
● Going to the movies
● Playing video games
● Going to music concerts
● Taking a cooking class together
If traveling is important to you, and you can’t forgo it, check out these 10 impressive ways on how to save money for travel to ensure you don’t offset your budget.
6. Join an Online Community for Money Savers
If you’re looking for ways on how to save money from salary, consider joining a saver’s community online.
You’ll benefit from from the money management tips from the gurus and have the members to hold you accountable for your goals.
Having a chance to interact with people sharing your goal makes it easy for you to follow through with your plan.
Some group admins even offer free printables to make your saving journey easier, as well as affordable courses on finance literacy.
7. Reduce Your Utility Bills
You can save a lot by reducing your utility bills. Here are some ideas:
● Use fans instead of cooling systems during summer. This will significantly reduce your electric bill since the fans consume less energy than the cooling systems.
● Make a habit of unplugging your electronic gadgets when they’re not in use. In every household, there are always so many gadgets that are plugged in and not in use. And although they consume only a little power, the charges accrue to something significant with time. Also, check these 20 practical ways to save electricity to reduce your power bill.
● Contact your utility company. Sometimes utility companies have programs that help members to cut on their utility bills that you don’t know about.
8. Spend Less on Clothes
I know you want to impress your bf and your IG followers by flaunting the trending shoes or clothes in the market. But that shouldn’t be your priority right now.
Chances are there are some clothes that you haven’t won for years. Use what you have for now instead of shopping for new clothes.
In addition, if you have kids, find an economical way to clothe them as they outgrow their clothes really fast.
For instance, if your sister’s kids are younger than your kids, you can talk to her and have the clothes instead of shopping for new ones.
9. Have a ‘No-Spend Days’ Calendar
I came across this hack on @thembaqueen’s Instagram page, and it’s very effective.
I don’t carry any cash with me during these days to avoid any temptation. This way, even though you see any tempting shoes or bags you have no choice but to let them go because you don’t have the means to pay.
It involves having block days that you commit to not spending any money. I have found this helpful, especially after shopping for groceries and fueling my car.
See an example of a blocked calendar below.
This brings us to our next tip on how to save money from salary.
10. Stop Impulse Buying By Using the 24 Hour Rule
It’s so easy to go buying stuff that you don’t need. Sometimes our impulse buying is simply triggered by something else that’s happening in our lives. Some people shop when they’re under stress, while others shop when they’re excited.
Emotional-triggered shopping can hurt your financial future. Whenever you start feeling impulsive, try to find the root of the problem instead of shopping.
The other way to curb impulse buying is by using the 24-hour rule. This means that whenever you’re about to purchase something you don’t need to use immediately or a big purchase, you wait for 24 hours before you purchase it.
Chances are the excitement will have faded away, and you’ll no longer feel the need to buy it.
11. Use Shopping Lists
It’s easy to get swayed to buying stuff you don’t need if you’re not specific about what you want to buy.
I’m sure you’ve had instances where you’ve entered a supermarket intending to buy milk only and ended up spending $100 on other ‘necessities.’
Always have a shopping list to avoid overspending on random things.
12. Use the 50/30/20 Rule
There are so many theories on how much you should save from your salary. For example, the author of The Richest Man in Babylon suggests 10%, which I think is very reasonable for beginners.
But you’ve probably heard of the 50/30/20 rule. The rule advocates suggest spending 50% on your monthly expenses, 30% on your other wants, and saving 20%.
13. Put Your Unexpected Money into Good Use
Another great way to save more from your salary is by utilizing every extra coin you get wisely.
For instance, if you bump into a friend at the coffee shop and they buy you coffee, deposit that $5 into your savings account. If you get a tax refund, an inheritance, or work bonus, pay your debt or deposit it to your savings account.
14. DIY …Everything You Can
This is among the most effective tips on how to save money from salary. There are always things you need to do in the house. In most cases, you outsource these tasks. This could be painting your home or mowing your lawn. Some of these activities can be very costly. For instance, a simple bathroom renovation can cost up to $3000.
Next time, instead of paying someone to do it, do it yourself. There are so many free tutorials on YouTube that will guide you on how to do pretty much anything.
15. Brew Your Coffee
Do you really need to brew your coffee? Well, yes, you do. If you take two cups of coffee every day, that’s at least $10.
Buy some coffee beans and brew your coffee. You’ll require a coffee grinder, but that’s a one-time cost.
This is a great tip for beginners on how to save money from a small salary since it involves cutting down on something.
$10 may seem very minimal, but that’s $70 in a week.
16. Declutter
There are so many things in your house that don’t bring you joy. In most cases, you don’t even notice them or think about them. And those things may be the difference you need to stop living from paycheck to paycheck.
Remember that vintage chair that your aunt Sally gave you that you can’t stand? Sell it. And that flower vase you got at an antique shop that you don’t use? Let it go. In short, if you haven’t used something for the past eight months it’s time to trade it for something meaningful.
You can either put the money in your savings account or clear some of your debts.
17. Get a Side Hustle
There are two ways you can save money. You can spend less or make more money.
If all the tips on how to save money from salary seem too hard for you, consider getting a side hustle.
There is a lot you can do to make an extra buck. For example, the old truck that’s covered in the garage could make you so much money. If you don’t believe it, check out on our post on 13 mind-blowing ways to make money using a truck.
Alternatively, if you’re a good writer, you can try your hand at freelance writing or blogging.
Here is a list of 50 lucrative side hustles you can try to make more money.
How to Save Money from Salary (The Conclusion)
Does it always appear like your salary is too little even to cover your bills? It’s like you get your cheque today, pay your bills and cover a few expenses, then boom, you’re back to using your credit card.
This only makes you sink deeper into debt and live your life waiting for your next paycheck.
Well, the good news is, it can be easier. Decide today and start saving your journey.
If you loved this article, check out our tips on how to save $20000 a year.
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