If you’ve ever found yourself stumped when it comes to managing money, you’re not alone. It’s not inherent or natural, especially if you’ve had little to no training or guidance. So, when you’re a young adult navigating the early days of money management, it’s normal to be unsure what to do.
Then, as you age, expenses only increase and get more complicated. You have to plan for retirement while trying to afford daily life. It’s no wonder saving money isn’t as simple as it initially appears to be. Luckily, you can make a few adjustments so it becomes easier. Here are five to get started with.
1. Do Your Research
When you’re in a pinch, making a split-second purchase decision makes sense. You know you may not be getting the best price, but you need that particular product or service immediately. However, if you have more time on your hands, it’s well worth it to do some research.
This goes for anything you might buy, but it is especially important for big purchases. If you’re investing in a nice bag, know about the materials and care requirements. If you’re buying a home, take the time to get a homeowners insurance quote to know your options. Or if you’re car shopping, test drive and read online reviews before signing the dotted line.
These additional steps take more time ahead of making your purchase decision, but they also ensure you know what’s necessary to confidently make a decision. And that may just save you the cost of making the wrong purchase.
2. Track Your Spending Diligently
It’s challenging to save money when you’re not informed about how much you have and where it goes. So, a great place to start saving is diligently tracking every cent you spend. That simply requires finding a system that works for you.
Some people prefer a pen-and-paper approach, opting to write down each transaction. Others may use budgeting apps or spreadsheets to track information. Focus on being detailed regardless of which approach you land on. Doing so gives you confidence in knowing where your money is spent.
From there, you can identify the areas where you spend the most. These trends give you an idea of where you can cut back and how to better manage your money. With your system in place, you can more easily budget and factor savings into your plans while still enjoying life. You may even uncover expenses you didn’t know about that you no longer need, putting money back in your wallet.
3. Shop Smarter, Not Harder
There’s a seasonality to shopping that can’t be overlooked when you’re trying to save. Holiday items, seasonal clothing, and more can be priced very differently depending on the time of year. So, do yourself a favor and lean into the best times to shop for different items you want or need.
Take winter coats, for example. Waiting until the fall or early winter to pick up a new coat will probably be expensive. That’s because demand is the highest when others also realize their coats from last year are worn or no longer fit.
Instead, anticipate needing a new coat early and go shopping during a heat wave in the dead of summer. Or pick up a coat that’s on sale in a size bigger when winter’s coming to a close. That anticipation can save you a lot of money and make transitioning between seasons more seamless.
4. Follow the 72-Hour Rule
Walking up and down store aisles often leads to seeing things you want. Something catches your eye and may even be a good price, so there’s no harm in buying it, right? If saving money is your goal, giving into temptation like this is definitely a problem. Instead, aim to follow the 72-hour rule.
This is a simple guideline that advises you to leave items you’d like to buy at the store. If you’re still thinking about them three days later, you can go back and buy the item if it’s within budget. More often than not, you’ll probably find you totally forgot about whatever it was.
The bigger idea is to put thought into where your money goes. Impulsively buying a dozen things you don’t need and won’t use is a waste. So, save your hard-earned money by taking some breathing room before purchasing. You’ll find more often than not that money in your account brings you more joy than the item would have anyway.
5. Know What You Have
When you own a lot of things, it’s hard to remember them all off-hand. Your closet may be overflowing and your kitchen drawers are filled to the brim. That’s why taking inventory of what you have is such a great way to save money.
This can be applied in several ways. Before you go to the grocery store, for example, check your pantry, fridge, and freezer to see what you have. Compare that with your list and cross off anything you already have. With that simple step, you’ve just saved yourself from buying duplicate ingredients.
Follow the same approach when buying new clothes or picking up items for your favorite hobby. The goal is to know what you have to avoid spending money unnecessarily. If you keep everything updated, you’ll be surprised at how many financial headaches you’ll avoid.
More Money, Less Problems
Saving money isn’t always easy — sometimes it’s nearly impossible. There are, however, ways you can cleverly keep more funds in your account. With a bit of time and some consistency, you’ll be well on your way to expert saving status. In fact, it may even feel second nature.
