10 Practical Budgeting Tips to Reach Your Savings Goals

Introduction

In this video, we will walk you through practical budgeting ways to help you save up for all your saving goals. 

These tips are not your average impractical tips, so be sure to finish by the end because number two is extremely helpful.

Number 10: Reduce your grocery budget

The foremost thing to help you save more is to cut back on your grocery budget. Most of you would be shocked at how much you spend monthly once you start keeping tabs on your finances.

 An average American family of four spends almost one thousand dollars on groceries a month. This enormous number could be cut back in a lot of ways. Keep your grocery budget on a diet by making sure to stick to your list.

 Unnecessary charges like picking that pack of chocolates on the register are causing you to go beyond the budget. Going for generic brands with staples such as flour, sugar, salt, and even bleach will also help you cut costs.

 These staples have no discerning difference and only come down to the brand names. The only way to save when splurging on branded goods is to buy them on sale. Stick to this tip, and you have the potential to save at least eight hundred and eighty dollars a year.

Cancel Auto Renew Subscriptions

Number 9: Cancel your auto-renew subscriptions and membership

If you signed up for a one-month free trial to a streaming service to binge that exclusive documentary about your favorite pop idol, chances are you would be surprised by the billing on your credit card because you forgot to cancel the free trial fast enough. 

Save that money by canceling subscriptions and memberships, a gym membership that you don’t use regularly. 

If you don’t want to cancel these subscriptions and are for sure ready to binge a thousand shows on each of them, save by turning off auto-renew on all of them. This way, you are aware of every new subscription and cancel those that don’t improve your budget. 

Subscriptions such as these usually offer a family bundle that allows for multiple screens and you get to save to boot. Take your group of friends or your siblings and go for half-seas.

Say Goodbye to Cable

Number 8: On that note, say goodbye to cable.

The rebirth of online streaming services such as Netflix, HBO Max, and Hulu has essentially canceled cable TV. And to be fair, rates have been steadily getting higher with the average being 217 dollars a month. Multiply that by 12 and you pay almost twenty-six hundred dollars a year. 

Break up with that subscription and opt for video streaming services and other networking applications instead.

 But keep in mind tip number nine and don’t go crazy on your streaming subscriptions. Signing up for every single one of the subscriptions will defeat its purpose.

Use Coupons

Number 7: Use coupons and other cashback applications.

Although it’s 2022, nothing will beat the appeal and benefits of a 15% off coupon for bulk buying tissue papers. 

Find coupons on your Sunday paper or simply do a little Google sleuthing by researching the brand together with the word coupon on the search bar. You’ll find a plethora of sites dedicated to compiling them for easy access. 

Another way to save for online shoppers is by using the many cashback apps and browser extensions that would automatically source the internet for an available discount for something you are planning to buy. 

Some of these apps and cashback extensions will even notify you if a discount is available for a specific thing you want to splurge on. Start small by using a couple of coupons, and the thrill of saving will excite you.

Skip Coffee Shop

Number 6: Skip coffee shop coffee.

This next tip will be painful for some of you, and we get why. Although delicious as they come, these frothy drinks instantly charge you one to five dollars in one morning or even more if you are partial to multiple cups a day every day. 

That one to five dollars could instantly be cut to 16 to 18 cents if you choose to brew coffee at home. That’s under seventy dollars for all your coffee for a year. If you want fancier coffee, there are recipes and bottles of syrups widely available in stores. 

Not only do you get to control what gets in your cup, but you also develop a new skill and interest and save a bunch in the process.

DIY Almost Everything

Number 5: DIY almost everything.

Speaking of developing a new skill and interest, this next tip saves a bunch of money by essentially DIYing everything from new decors for your house to cute upcycled outfits for your next bee trip, to saving on balloon decors on your kid’s birthday by making the balloon backdrop yourself. 

The cost of materials over the finished thing itself will cut costs by half or even more. There are a bunch of do-it-yourself blogs and YouTube videos on the internet that will give you a comprehensive guide on how to meet your desired end for whatever project. 

As for power tools, if the project is more extensive, borrowing tools from your friends and family or investing in one that you are sure you will be using, in the long run, will be a significant saving over buying new ones every time.

Scale Down Energy Costs

Number 4: Scale down energy costs.

Here is a way that could cut significant costs on your electric bills but also save the Earth and put you on track to living sustainably, and that is reducing your energy consumption. 

We don’t mean switching to expensive energy-saving and efficient appliances all at once, but significant changes like taking short showers, not fewer, washing clothes with cold water, and simply changing all your bulbs to LED ones plus installing a dimmer can help you save every month. 

This is also living sustainably as every minor cut you make on track to saving your electric bill money can help in little ways to reduce energy consumption. Water bills can also be affected by making sure that there are no leaking pipes around your house.

Save All Extra Income

Number 3: Save all extra income.

The next seems like a no-brainer but is also a little harder to do because the temptation of splurging and spoiling yourself for a job well done is stronger than you can control.

 Every bonus and surprise money you receive, whether a nice work bonus, payment for some freelance work, a tax refund, or even another pandemic stimulus check, save a sizable chunk instead of spending it all in one go. 

Although if you have some debt to pay like student loans or even an overdue credit card payment, the more thoughtful way is to pay them off, dread yourself of some of the burdens.

 If you are blessed enough to have no debt at all, keep the money for your emergency fund. This is a way to be smarter about your finances and proactively plan for the future.

Automatically Save Money

Number 2: Automatically save money.

Some of you may not be aware that to help you save money every month without forgetting to, banks have options to set funds aside automatically from your checking to your savings account. 

You as the saver will set a portion of your salary, whether 10 or 20 percent of your paycheck, and the bank will deposit it to your savings bank account periodically. 

This way is convenient for anyone who wants to save up steadily and will save them the trip to go to the bank to deposit funds monthly. The terms are very easily negotiable and flexible, and you don’t have to live so frugally to save up.

 Not only do you get extra savings costs and the cuts that you will make in your daily or weekly activities, but the automatic deposit will ensure that no matter what, there will be money allocated for you to save.

Say Goodbye to Debt

Number 1: Say goodbye to debt.

The biggest thing that puts a dent in your monthly income is debt, so it is about time to cancel your debt by paying it off.

Employing the debt snowball method to help you plan efficiently. The debt snowball method is where you pay your debts starting from the smaller ones and progressing to the most considerable debt amount. 

Of course, this would not include your mortgage, which you have to pay every month, but bigger debts like overdue credit payments or even a sizable chunk of your student loans. 

Paying your debts will require behavioral change that will help you on your road to saving. It looks pretty intense, but little things like cutting back on to-go coffees and packing your food to school or work will help you allocate a part of your salary to debt payments. 

Once all your debts are settled, the savings will come as easily and naturally, and being debt-free will allow you to have added disposable income.

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