Three Tips for Saving Money Every Paycheck

Tip #1: Plan and batch your money tasks to reduce the chance of impulsive buying.

As you probably know, one of the hardest parts about consistently saving is dealing with unexpected expenses. Of course emergencies happen. It’s just a part of life. But what about the unexpected impulses that undermine your budget each week?

For example, I really try my best to do all my meal planning, grocery shopping and meal prep on one day each weekend (usually Sunday). This way, not only am I set for the week, but I don’t have to go to the grocery store on a weekday evening.

And the reason that’s so important is because I know in the wrong situations, I can be an impulsive guy. And if go to the grocery store on the way home from work to pick up some bread or something for dinner, there’s a very good chance I’ll also spend on a few other snacks. Unfortunately, these impulsive and unplanned purchases really start to add up (both in the wallet, and on the bathroom scale!).

On the other hand, if you’re only at the store once per week with a detailed grocery list, you’re much more likely to spend smarter, only buy what you really need, and save some money in the process! So try to look at your routines and see where you can take yourself out of dangerous spending situations!

Tip #2: Use technology to further take your willpower out of the equation!

The key insight from money saving tip #1 is: when we’re not careful, we can end up being our own worst enemy! That’s why the second cash saving tactic I want to share with you is all about how to super-charge getting out of your own way. And if you think about it, since we’re so fortunate to live in a technology-enabled world, this tip is easier than ever!

In particular, our mobile phones are incredibly powerful. And with a little forethought, they can be great tools for helping us save more money. For example, bank apps for both Android and Apple devices do much more than help you pay yourself first these days! In fact, they keep getting better and better at telling you in what areas you’re spending smartly, as well as where you’re over budget. It’s powerful information, as long as you’re paying attention.

And if your local bank’s app doesn’t offer any spending tracking features like this, you may want to try a third-party service like Mint or Personal Capital to keep track of all your spending.  Plus, the great thing about these apps is that not only are they easy to use, but they also work from your real historical spending. So rather than risk an over-optimistic budget, you can use these financial apps to forecast based on facts.

Finally, why not go a step further and actually automate your savings? For example, the app Empower monitors your spending, and then automatically saves money for you! Pretty cool, right? If you feel you lack the willpower to save, give these apps a shot and see if you can get your saving habits back on track!

But if you’re still having trouble saving money on a regular basis, it might be time for tip #3.

Tip #3: Audit your expenses vs. your values.

If you’re having trouble saving money consistently, it’s possible your spending is out of line with your values. But what does this mean?

Well, the truth is, there’s no shortage of things to spend your hard-earned money on. Whether it’s eating out for lunch every day, investing, splurging at the mall, or buying subscription services online, you can always spend more money than you make!

So you want to get value for what you spend! As an example, during the week I’m usually busy and just want to get through the day. So I always brown-bag my lunch, and save hundreds of dollars each month in the process.

Do I love eating the same sandwich each week? No! But I also don’t love eating out at restaurants on workdays because it’s time consuming, expensive, and I often feel like I need a nap around 2:30pm. On the other hand, I’m eager to take my wife out for a lavish meal each weekend because we get to spend time together and really savour whatever flavours we’re craving that day.

Now this is just an example, but I hope it illustrates my point: by spending more on the things I enjoy (and skimping on the rest), I can still habitually save money without feeling like I’m sacrificing my quality of life. Make sense?

The cool thing about that is, and irrespective of how much money you save, you really start to feel like you’re living a richer life. And that mindset shift can then also help you keep up your money-saving momentum!

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Conclusion: Saving Money Works Best Consistently

At the end of the day, life is to be lived! So my hope is that these tips help you not only save money, but also enjoy your life more! Because in my opinion, you’ll only start saving money each paycheck when it doesn’t feel like you’re struggling to do so.

And it doesn’t need to be a lot! But I encourage you to build these habits every pay period. Now of course, these three tips aren’t going to make you a millionaire. But they can certainly help you get started on the right financial foot. And if you put them into practice on a regular basis, before you know it, your savings will be snowballing and your bank account burgeoning!

Photo: Odyssey Online