Think about being your best self living your best life.
What do you really want to do with your life?
Raise a happy family?
Chris Zuppa/The Penny Hoarder
Buy a nice house?
Start your own business?
Unfortunately, Americans are bad at saving money, and were getting worse.
Thanks to rising costs, stagnant salaries and student loan debt, weresaving less than ever.
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
Pour yourself a cup of coffee and buckle up.
Its time to get serious about this.
Your first move is to set specific savings goals for yourself emphasis onspecific.
Naming your goals will make them more real to you.
Itll help you resist the temptation to spend your money on other stuff.
Think Long Term and Short Term
Whatexactlydo you want to save money for?
How much will you oughta save?
And what do you should probably save for first?
Write down your income and expenses allof your expenses, from utility bills to your Netflix subscription.
There are probably more ways to save money than you realize.
Dont forget your student loans or credit card debt.
ensure you know what youre spending in everybudget category.
Pay special attention to what youre spending on non-essentials, such as eating out.
Connect your checking account, credit card and savings account for a big-picture look at your spending habits.
Then, take a closer look by checking out each of your transactions.
This will help you stick with your savings plan.
Check in on Your Credit
Do your own credit check.
It gives you personalized suggestions for improving your credit.
The better your credit, the better off youll be when youre getting a home or car loan.
Credit Sesame can estimate how big a mortgage you might qualify for, for example.
Heresour ultimate guide to using Credit Sesame.
This way, you could put savings right into your budget.
Its never an afterthought.
Here are five different budgeting methods.
We cant tell you which one to choose.
Be honest with yourself, and choose the one you think is most likely to workfor you.
This is how to save money on a tight budget.
Put the money earmarked for your financial goals into a separate savings account.
Good for:People who worry they wont have a life if theyre on a budget.
Heres our completeguide to 50/30/20 budgeting.
Envelope Budgeting
So-calledenvelope budgetingis traditionally a cash-only budget.
Heres ourreview of Mvelopes, an app that lets you digitize this method.
Good for:People who know they need help with self-control.
This way, you have to justify every expense.
Good for:People who need a simple, straightforward method that accounts for every dollar.
Heres ourguide to the zero-based budget.
Debt Avalanche
This debt-repayment method helps you budget when you have debt.
Pay off your debts with the highest interest rates first most likely your credit cards.
Doing that can save you a lot of money over time.
Good for:People with a lot of credit card debt.
Credit cards generally charge you higher interest than other lenders do.
Learn more about thedebt avalanche methodhere.
Debt Snowball
Money management guru Dave Ramsey champions the debt snowball method of debt repayment.
Pay off your debts with the smallest balances first.
This allows you to eliminate debts from your list faster, which can motivate you to keep going.
and who need motivation.
Heres how to use thedebt snowball method to eliminate debt.
If youre like most of us, youve had the same bank for years.
Most people dont give this a second thought.
They figure its too inconvenient to switch.
Maybe its time to try another financial institution.
Heres one example: Theres a mobile baking app calledVaro Money.
We know opening a new bank account isnt exactly everyones idea of fun, but Varo makes it easy.
Oh, and there are no monthly fees.
Heres ourultimate guide to help you choose the right account.
How can you avoid paying all that interest?
Start byusing the right credit card for you, based on your situation and needs.
Also consider paying off your high-interest debt with a low-interest personal loan.
Its easier than you might think.
Go window-shopping at an online marketplace for personal loans.
Here are some weve test-driven for you:
Step 4: Automate Your Finances
Thats right.
Were deep into the 21st century, here, so make technology do the work for you.
The best ways to save include automation.
Youll save time, and time is money.
Automate Bill Pay
Most bills are paid online now, reports the Credit Union Times.
But you’re free to take it a step further.
Set it up so youll receive and payallof your bills online through your bank.
That simplifies things so youll never miss a payment.
Heres how:Go to your banks online bill-pay feature.
Enter all the companies that bill you, and the account numbers for each.
Arrange to receive e-bills from whichever billers will do that.
Automate Savings
Whatever you need done financially, theres an app for that.
Weve put several to the test.
Automate Investing
You dont have to be Warren Buffett to be an investor.
You dont even have to follow the stock market, read The Wall Street Journal or watch CNBC.
Theyre useful for tricking your brain into saving more.
Youll do it without even realizing youre doing it.
Automate Budgeting
you might automate your budget, too.
Theres an app for that.
Actually, weve found several.
Mintlets you see all your accounts, cards, bills and investments in one place.
(Or make more money, but well get to that next.)
That doesnt mean you have to live like a monk.
You just have to be smart and strategic.
But castles are so, like,expensive.
Fortunately, there are lots of ways to save money around the house.
Your priciest purchases like appliances and furniture are a natural place to look for savings.
Try repairing your appliances instead of replacing them.
And heres a good list of othertricks for saving on furniture and appliances.
The cost of cooling, heating and lighting your home is massive.
Try installing thermal curtains and a programmable thermostat.
Or check outthese creative, energy-saving waysto slash your utility bills.
Find Free Entertainment
Entertainment can cost an arm and a leg.
But hey, we have tolive, right?
So do it for free!
Next time youre planning a night out, take advantage of one of thesefree date nightsor group outings.
If youre going to stay in, cut the cord.
More and more people are doing this, because their cable bill has gotten so expensive.
We compared costs, throw in of content, number of available titles and more.
You also should reconsider that gym membership if youre not really using it.
Nearly 70% of us say we spend too much on take-out or going out to eat.
Heres how tosave money at restaurants, too.
Finding affordable health care coverage is a huge challenge for freelancers.
Heres how toget covered if youre self-employed.
Life insurance pays your dependents a set amount of money if you die.
Whether to buy it is ajudgment call.
Life insurance is considered more important if youre married or have children.
You might also want a basic policy that would pay off your funeral, mortgage or other debt.
Youll probably be asked to choose between two options:term or universal life insurance.
Its easier to save money if youre bringing in more money to begin with.
Weve tried a lot ofpaid survey sites, and two of the best weve found areMy PointsandInboxDollars.
Clear Your Closets
Sell your old stuff!
it’s possible for you to also sell nearly anything through theLetgoapp.
Just snap a photo of your item and set up a listing in about 30 seconds.
If you have more free time, try selling items on Craigslist or eBay.
Hes slowly getting better about saving money.
