5 Easy Steps to Save Money Each Month (Even on a Tight Budget)

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Most importantly, you'll learn about the mindset required to successfully start saving money today. While the video and ensuing article will give you several ideas for saving money, it's important to recognize that setting aside income requires a commitment to lifestyle change. It may be temporary, but sometimes temporary is just enough to make ends meet.

Stop living paycheck to paycheck and start to get ahead with these 5 steps:

1️⃣ Track Your Income and Expenses (0:33)

Being diligent about tracking your spending can go a long way in recognizing where your money is truly going. It may seem like common sense, but very few people put it into practice. If you're struggling to get out of debt and think you can't afford to save money, start by addressing money problems head on, rather than ignore them.

Useful tracking apps and tools include:
► Mint
► EveryDollar
► Google Sheets/Excel

2️⃣ Create a Budget (1:28)

A budget is another powerful tool in helping you learn how more effectively start setting aside money for important goals. If you're income has preemptively been allocated to certain budget categories, it takes all the guess work of figuring out how much to save each week.

[Full Post] How to Create an Effective Budget that Actually Works

Plus, budgeting gives you permission to spend. It's not meant to be restrictive. Know that you can tweak your budget as necessary during the first few months as you adjust to tracking your spending in certain categories. If it feels too restrictive, you can make sensible changes to allow yourself more freedom, without spending excessively.

3️⃣ Automate (2:13)

Automating your finances is helpful in many ways. You never have to worry about late or missed payments, and you can often get reduced interest rates on things such as automotive and student loans.

Common expenses such as insurance policies, utility payments, and even charitable donations can all be set to auto-pay. If you're following a budget, this can be a great way to save you time and money.

4️⃣ Perform Frequent Check Ins (2:42)

When we face money problems it becomes easy to ignore the situation. Who wants to deal with issues that cause anxiety and friction in our lives? Unfortunately that is the worst possible approach. Instead, tackle them head on.

Completing small tasks has been shown to release dopamine in the brain. When we complete task that releases dopamine, we're apt to repeat it, and a mini habit starts to form. Checking in on our finances with a specific regularity is a great way to psychologically reward yourself for saving money (and encourages you to save more)!

5️⃣ Know Your Why (3:47)

If you're struggling with how to save money, start with knowing your "why". Then write it down. Research says you're 42% more likely to achieve a goal you put in writing!

▸ Are you trying to pay off debt?
▸ Saving for a vacation?
▸ Depositing into a college fund for a child?
▸ Christmas presents?
▸ Down payment for a house?

Write it down. Put it somewhere for everyone to see. Know your why.

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