Have you been wondering How to stop struggling saving Money?
Quite honestly it is one of the hardest, but also most important, changes you need to make to become wealthy. But no matter what you try, you always end up spending all or more than you had for the month.
But be assured – you are not alone – many people out there who make a suitable income is struggling like you.
I have found out how to achieve a permanent change and want to share all my learning with you!
Also dive into our article on creating your financial plan.
Before going into specific advice, I want to address some things to prepare you for the road ahead on How to stop struggling and save money.
How much do others have Saved?
The average saving across the last 13 years is approximately 5% yearly savings rate. Suppose you have an income of 100.000$ a year after tax it that means you need to put aside 400$ per month, to be on par with other savers. This doesn’t seem like much, but in the long rung it builds up to being quite a lot of money, as your savings compound either by interest or investments.
Another thing to note is that TIME is a very important factor. The more time you have, the better off you will be in the long run.
Take a look at our investment calculator to understand why.
Yearly Savings Rate for Millenials
Is saving about motivation or discipline?
Studies show that humans will always try to avoid doing things, that are unpleasant. The same goes for your savings scheme. You have been in a position to spend whenever you want, and on whatever you want. Perhaps you have also gotten into Credit Card debt, which is really bad.
According to modern social science, you probably are having issues with keeping motivation up for saving money.
However you need to assume a different approach – You need to grow a money saving discipline. This in essence means developing a habit, where you train your brain to perceive spending as pain.
One way to do this is to keep cash around, as it is often harder to part with physical money than digital cash.
Best ways to Save Money 2018
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- Automate recurring Expenses
- Scrutinize subscriptions
- Use your car less
Automate recurring expenses
Items like health care, insurances, utilities etc. are expenses you cannot do without. However instead of having them come in as surprises, you need to build a budget and automate the payments.
The steps to this saving are
- Create an account for recurring expenses
- Identify your recurring expenses and distribute them across the year.
- Setup automated transfer of money to your Recurring expenses account
- Setup payment schedules ensuring payments are made on time to avoid fees for late payments
Review your expenses frequently to ensure that only the necessary bills are paid. You can read more about financial planning in our article
During the later years many products and services have moved to subscription based solutions. This would be Streaming services like Netflix, HBO, Spotify and so on. But also many other items have move to the same business model, like ….
The challenge with subscriptions is, they keep running even though you don’t use them and they accumulate FAST.
This is why each month you should look into your expenses and investigate what you are subscribing to and where you are not getting the value you want.
Most likely you can find 20-50$ in this category, that you can pipe directly into savings and later on investments.
Use your car less
People with cars tends to develop a habit of driving to most places. While this is comfortable, it’s a big expense on two parameters.
First off you wear on your car and have to pay gazoline, tires and maintenance on the vehicle. Secondly your health will benefit tremendously from the exercise involved in not using the car.
Even if you are going a couple of miles, it is worth walking there rather than taking the car.
And quite honestly, if you are the type that drives to the gym, then you need to find a closer gym or stop looking like a fool!
Eat and Drink at home and save money
going out to eat is often costly and will impair your budget quite significantly. Two pizzas here will set me back in the range of 25-30$, which is the budget I can feed my self and two kids on for 3-4 days.
This is even without drinks to accompany the pizzas, dragging my expenses way into the red.
However eating at home is much better. You get to pick the best ingredients, have a great time cooking with friends and family.
Secondly making a bit more than you need for the first meal allows you to easily save time the next time, by including the left overs in that meal.
Conclusion on How to stop struggling saving Money
In this article we have shared insight on how to stop struggling saving money. We have explained the psychology behind why you have been having a hard time. You now know what others save on average and can relate.
Over time we have collected a series of universal advises for your personal free use. However if you are missing something on the list, then let us know at firstname.lastname@example.org
The ball is in your court
It is time for you to set goals and start saving for a better future where you do not live hand to mouth every month. However you don’t need to go the distance on your own!
Want help reaching your goal?As a service we provide support for you, while you transition your habits.
Reach out to get help throughout the process