Saving your money from salary is more difficult than making money.
If you’re making $1000 a day but you’re not saving your money then there is no importance of that money.
Well, if you understand how to save money from your salary, you can easily achieve your financial goals no matter how hard they are.
In fact, this post will show you exactly how to save money from your salary.
Let’s have a quick look at what are the ways to save money from your salary:
- Keep a track of your finances
- Pay off your debts first, if you have any debt
- Keep Tracking Your Expenses Every Month
- Cut Down Your Extra Expenses as much as you can
- Save Your Money While Shopping
- Switch to an online savings account
- Set direct deposit or Use Automatic Savings App to save automatically
1. Keep a track of your finances
Since you have a consistent fixed income, it is very important to manage and save your money, one of the important things is to keep a track of your finances.
The biggest mistake people do is they just don’t care about their financial situation, buy anything that they want and not try to save some extra money.
The most efficient way to keep a track of your finances is to make your budget list and spending list.
While making a budget list try to write the most necessary expenses first and least important in the end. In this way, you’ll actually realize what are the important expenses for you.
Well to find out whether you have invested in the right expenses or not, make a list of the expenses that you have spent in a month. To find out your monthly expenses, you can use your past credit card bills or bank statements.
All right, find out which important things you have really done and what unnecessary things you have bought or did.
2. Pay off your debts first, if you have any debt
Before saving money from your monthly salary, you have to pay off your debt quickly.
If you will not pay off your debt, your more than half income will be wasted in paying off your debt. And in this way, you will keep taking new debt just to pay off the previous one.
To pay off your debt, one of the most important things is to say no to more debt. It doesn’t matter whether you have owed a high-interest debt or low-interest debt, both are bad for financial life. A low-interest debt also takes a large amount of your income to pay off that debt.
I know it sounds obvious, but it is not. What most people do is just take another debt to pay off the previous one. And if you do this, you will never get out of the debt.
But, the problem becomes more difficult when you have a low income. In this case, it is very important to make a proper strategy to pay off your debt.
Well, I have recently published a post on how to pay off your debt with low income.
3. Keep Tracking Your Expenses Every Month
Your expenses play a major role while saving your money. It is very important to keep tracking your spending.
How can you keep tracking your expenses?
Well, you can easily do that by making a budget list, you can easily do that in google sheets or use the traditional way of writing lists with the help of paper and pen.
But, how can you know what you have spent?
To know what you have spent, you can use your past month’s credit card bills or bank statements, or you can also see your purchase on any app if you use a savings app.
It is not about for a month or two, it’s about every month. It is important to make your expenses list and keep tracking your expenses every month.
Sometimes, you’ll see that there are more expenses while sometimes expenses go very high. Whenever the expenses fall down, try to save more money on that month.
And, when expenses go high, you must know what those expenses are and why they occur.
If you analyze your expenses in this manner, it will become easier for you to cut down your extra expenses.
That’s our next tip…..
4. Cut Down Your Extra Expenses as much as you can
After tracking your expenses, the next important thing to cut down your extra expenses.
Having extra expenses is normal but the problem is to find those expenses. Because if you are spending your money on those expenses, it means you want to do it. And in this case, you’ll not find that extra expense.
Those extra expenses can be anything like Entertainment expenses, your any addiction, any non using services.
If you use different online services like Netflix or any app services, sometimes you set automatic payments for a long time. If you’re using private vehicles for traveling, try to use public vehicles as they are more cheap.
The best way to know what your extra expenses is to make your spending list. To find out your monthly expenses, look at your past credit bills and bank payments. Now, have a look at your past payment and find out your extra expense.
Try to avoid that expense and invest that money or put it into a savings account.
5. Save Your Money While Shopping
Of course, all of you want to save your money while shopping.
But, the question is how can you do that?
If you shop offline, you can buy groceries, clothes, and other products in the large stock when you find a good amount of discount and offers for later use.
Well, if you shop online, you have a great chance to save your money. It is very important to save your money while shopping online.
How can you do that?
Use the best cashback apps that help you to save money while shopping online. You can use the wikibuy app and honey chrome extension for saving your money.
For grocery shopping, you can use Shopkick, it helps you to save money while shopping for groceries.
Other than giving the best coupon code, it also helps to track the price of any product. When you will view any product in the wikibuy app, it keeps tracking the price of that product and let you know whenever the price of that product will fall down.
On the other hand, Honey is a chrome extension that provides coupon codes in just one click. It is very useful when you want a coupon code very fast while shopping online.
There is also one more app that is Ibotta which helps you to save money even after shopping. Just scan your shopping receipt and it will automatically add money to your account.
6. Switch to an online savings account
Easy to access is not only the reason to switch to an online savings account.
There are more other benefits like you get higher interest for your savings whenever you’ll save money in your savings accounts. You can keep your savings without paying monthly fees for it.
Apart from these, there is one more benefit of switching to an online savings account, you can automate your direct deposits or withdrawal from your checking account to your savings account.
Well, this is something that you’ll learn in the next tip.
7. Set direct deposit or Use Automatic Savings App to save automatically
It is very difficult to save money from yourself.
How good it will be if you can save your money automatically?
Well, you can do that. You can set direct deposits or withdrawals from your checking account to savings account to save money automatically. You’ll have to set the amount and frequency ( exactly how many times you want to transfer your money from checking account to savings account).
These automatic savings can help you to save for future retirements, achieve your future goals, or build emergency funds.
If you don’t want to do this, you can also try the some online apps. It automatically rounds-up your money to save your money automatically.
Whenever you will purchase anything from your credit cards and transfer that money into your acorns core account.
Other than saving your money automatically, it also helps to save your money while shopping online. Its found money feature helps to save your money whenever you’ll shop with their partner stores.
Bottom Line For Saving Money From Your Monthly Salary
Here you have 7 best ways to save money from your monthly salary.
In short: if you want to save money from your monthly salary, keep tracking your finances, cut down your extra expenses, and use cashback apps to save extra money while shopping online.
Now I would like to know something from you:
Which tips are you going to try?
Are you going to use cashback apps while shopping online?
Or maybe you’ll try an online savings account.
Either way, let me know your opinion in the comments section below.
About the writer: Anshul Kahar is a Founder of Acetechdollar which is a personal finance blog. He is a college student who loves to gain knowledge about finance. He loves to gain and share the knowledge of stocks, personal finance, loans, and debt which he shares with its audience with the help of his blog.