These strategies should not be too difficult to apply, and you could find that putting one or two in place can create a snowball effect, which makes achieving the others so much easier. Continue reading for advice on how to save money over the next twelve months.
Set Clear Savings Goals
It is only common sense for you to define what you are saving for and when you expect to have the money. For example, if you want to save enough to buy the new iPhone on the day of release, this would be relatively easy to achieve; but other goals might need to be more flexible. For example, if you have a longer-term plan of saving for a down payment on your own place, you might need to define set amounts for each month over the next few years.
Create a Budget
Now you know how much you want to save, you need to set a budget accordingly. This process begins with you tracking your current spending over the course of a month to see where your money is going. You also need to look at previous bank statements to see if there are any large annual costs that you also need to take into account. Once you have defined this starting point, you need to draw up a spending schedule that is both realistic and meets your savings goals.
Look to Reduce Your Expenses
You are likely to find that setting a budget has set you the uncomfortable task of trimming your expenses if you are to meet your savings goal. This is where most efforts at saving fall flat, so you need to be extra vigilant here. As part of tracking your spending, you will have seen some obvious low-hanging fruit like the unused subscriptions that almost everybody has.
In addition, there are savings to be made by looking at the services you use every month, such as your internet provider. By comparing internet providers in Los Angeles you will be able to see which offers the best service for the price, and even if you can’t make a saving, you will be able to get a faster and more reliable service for the same cost.
Think About Increasing Your Income
One way of increasing the amount of money you can save is to simply generate more of it. Maybe a promotion at work or overtime is out of the question, but these are not the only avenues to extra income:
Sell unwanted items online: it is very likely that you have more than your fair share of junk lying around, and chances are that there will be somebody willing to pay for it. By listing items you don’t want on a site such as eBay, you could raise extra funds—and declutter your living space at the same time.
Start up a side hustle: you might have a hobby or pastime that you could monetize either by offering it as a service or writing about it online. Both of these are very low costs to get started, so it should not take anything out of your current savings.
