If you do one thing to help yourself financially in 2021, start with finding new ways to save money. Few people will be getting a raise this year, so we all need to give ourselves an income boost. My book, The Joy of $aving, is filled with simple ways to cut back on most of your monthly expenses. Here are a few steps to get the budgeting ball rolling.
Develop a relationship with your money. Too many of us live with our heads in the sand, unaware of how much money we have coming in and how much is going out. We should go from saying, “Where did all my money go?” to “Where did all this money come from?” And the only way to do this is to sit down and write a list of every monthly expense you have. Divide the list into two categories: expenses that are set in stone and those that have flexibility. Include everything, from your coffeeshop cup of morning Joe to your cell phone bills. Know where you are spending, so you will know where you can be saving.
Focus on flexibility. Focus on the expenses in your budget that are flexible. For example, look at your grocery bill. Groceries and dining out are two of the biggest chunks of change that we have control over in our budgets. You can save A LOT of money on your food spending. Plan your meals around what is on sale at the grocery store, join the store’s rewards program, and find coupons by using apps like coupons.com. Always ask for a raincheck if something is out of stock, so you get the item at the sale price when it is back on the shelves. These simple things can save you hundreds, if not thousands, of dollars a year. You need to control your money as opposed to it controlling you. Other areas of your budget that are flexible: entertainment, wardrobe, and personal care items. Call your cell phone carrier to see if you can lower your monthly rate. I did that and saved $60 a month! I did the same by calling my internet\cable provider and lowered my monthly rate by $45. Right there, I saved $105 a month! Look at every expense, make a call, and find out how you can pay less.
Focus on your goals. What are your goals? What would you like to see happen for you in 2021? Less debt? More savings? Make your intention simple and clear. Do simple things to make your saving happen automatically like: sign up for automatic savings with your bank or use apps like Smarty Pig to help you save. Look closely to see what type of app works best for you to reach your goals. Even if you are only saving a few dollars a day they show you how these small actions add up. Get clear on goals, automate and use apps that motivate to stay the course. Here’s to a year of saving joy ahead!