There are a number of things you can do now that will help you save money in the long run. However, many of us are more interested in how we can save money right now, providing us with the ability to see more immediate changes in monthly cash flow. If you want to save money now, here are some things you can do:
First: Get Your Priorities Straight
One of the reasons that we have a hard time finding extra money in the budget is because we haven’t prioritized our spending. Figure out what is most important to you, and then decide which items in your budget are mostly likely to help you achieve your goals. Before you pay for the unimportant things, make sure you have taken care of what’s important. This simple exercise can help you start thinking about your spending in a new way, and might even prevent you from spending money on things that aren’t priorities.
Start Making Cuts
Now that you have determined your financial priorities, you can start making cuts in your budget. Perform an audit of your budget, and pinpoint where your money leaks are. Some of the places you might be able to cut back include:
- Subscriptions: Not only can you get rid of some publications and monthly web site subscriptions, but you can also look at your TV subscriptions. Do you really need a movie package? Even if you don’t get rid of a TV subscription, see if you can downgrade it.
- Meal planning: You might be surprised how much money you waste just by not having a plan for dinner. Plan your meals so that you can stay on task while shopping for food, and so that you aren’t running out to grab something real quick. There are plenty of 30-minute recipes, as well as crock pot recipes, that you can use to take advantage of easy cooking.
- Conduct an energy audit: Go through your home and look for energy wasters. Seal around windows, check electrical outlets, and look for ways you can combine different devices on a single power strip — that can be turned off at night. When you use less energy, you pay less in utilities.
- Creative fun: You don’t always have to spend money to be entertained. Picnics, bike rides, snow-fort-building, board games and other creative activities can be enjoyed at a low cost. Look for free admission days in your town, and consider visiting historical sites as a fun activity. At the very least, you can eat out at lunchtime to save money, rather than going to dinner.
I’m sure if you took a few minutes, you could think of additional ways to save money.
Put Your Money to Work for You
Now that you have found some ways to add a little more room in your budget, you can put that extra money to work for you. Use the money to start up a side business, build up an emergency fund, create a dividend portfolio, increase your nest egg, or save up for a family vacation. You really do have the money in your budget; all you need to do is find it.
This article was contributed by Miranda Marquit, writer at PT Money: Personal Finance. Check out PT Money for more saving strategies, including how to use a travel rewards credit card to earn free flights.
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