After you set your savings goal, you will need to create a budget. Keeping within your budget is something you have to work at each day and making smart choices with your money will help you reach your savings goal faster.
Develop a budget
Your savings timeline helps to visualize the amount you need to save to reach your goal. Once you have created your savings goal and timeline, the next step is to develop a budget to help you reach your goal. Here are some tips to developing a budget:
- Determine what your monthly bills are – utility bills, car payment, house payment, gas and food
- Trim the fat – cut out buying anything you don’t need, like the daily expensive drive-thru coffee
- Pay down debt – like credit cards, which usually have high interest rates
- Track your daily spending – have a budget journal you can write down your purchases each day
Saving can be easy if you have the right information! Here are some simple savings tips you can start doing today.
- Buy items when they are on sale or with a coupon
- Create short-term and long term goals
- Avoid using credit cards
- Ask credit card companies for a drop in your interest rate
- Live within your means
- Carpool with co-workers to save on gas
- Bring a bag lunch instead of buying lunch each day
- Plant a garden instead of buying veggies from the store