One of the best ways to achieve financial security is to save more money. Saving money can feel like a daunting task, especially with rising prices, after paying your bills you may feel like there is nothing left to save. Don’t feel like you need to put a significant amount toward savings each month. Start small if that is all you have, over time any amount you save will make a difference.

Create a Budget

A budget shows you how much money you make and how much you spend. It shows you exactly where your money is going each month. Subtract your monthly expenses from your monthly income. At the end of the month, you should have money left over. If you have nothing left or you don’t bring home enough money to cover your monthly expenses, you are living beyond your means which leads to debt and financial instability. You will need to find a way to reduce expenses or increase your income to balance your budget.

Choose a Number

Review your budget and decide how much from each paycheck you can put toward savings. Then setup an automatic transfer from your checking account to your savings account. When it is automatic you will not have to think about it or forget to make the deposit. Depositing as little as 5% of your pay into a savings account can really add up over time. If you receive a raise at work bump up the amount you save. If you receive a bonus, tax refund, inheritance or any other extra money consider putting all of it or part of it into your savings account.

Create an Emergency Fund

The first goal when saving is to create an emergency fund. An emergency fund is money you have on hand to cover emergencies and unplanned expenses, having money in an emergency fund ensures that you will be prepared for a sudden expense, and you can handle those expenses more easily. Unemployment, illness, family emergencies and home and auto problems can happen without warning. Most financial experts recommend having enough money in an emergency account to cover 3-6 months of expenses. If you lose your job, you should have enough money in your emergency fund to cover your monthly bills. Having this money allows you to pay your bills while you are out of work without going into debt. Add up your monthly expenses and multiply that number by the number of months 3-6 you want to save for. That number is the amount of money you want in your account.

The size of your emergency fund will depend on your lifestyle, monthly bills, income, and number of dependents. Saving for an emergency fund doesn’t need to be painful. Review your current income and payments and decide how much you can contribute regularly. While reviewing your budget you may find that there are other things you can cut back on or eliminate, even if it is just a few dollars it will help to fund the account. Once your emergency account is fully funded you can put your savings into another high yield savings account. What is an Emergency Fund and Why it is Important

Cut Extra Expenses

Review everything you spend money on each month. Are there things you can reduce or eliminate? Take out meals, visits to the coffee shop, lawn and landscaping care that you could do yourself, simple home and auto repairs and maintenance, streaming services, gym memberships you don’t use, or recurring subscriptions. Any expenses you can eliminate is money saved.

TV & Phone Subscriptions

Are you currently paying too much for your cell phone plan or cable and streaming services? Shop around for a better deal. With so many providers to choose from you may be able to save a lot of money by eliminating or changing what you currently have. There are also tons of free streaming services available so you can watch TV for free. Cut the Cable and Paid Streaming Services and Watch TV for Free

Save on Internet Service

With so many internet service providers to choose from don’t get stuck overpaying. Call around and find out what’s available in your area, most offer a free trail period and setup so don’t be afraid to try something new. Talk to your current provider and ask for a better rate, if they know you are considering changing, they may offer a lower rate to keep your business. If you pay to rent a cable modem, consider purchasing your own which will pay for itself over time.

Heating and Cooling

Heating and cooling are major expenses. Have your system serviced yearly to ensure it is in proper working order, change furnace filters regularly, a dirty filter can cause the system to run less efficiently. Lowering the furnace thermostat by just a few degrees can significantly lower your bill. Weatherproof your home, caulk open spaces and cracks that let warm air escape in the winter and cold air escape in the summer. Turn the furnace down when you leave the house and turn the air conditioner up. Call your utility companies, most provide free home energy audits. The audit may reveal inexpensive ways to reduce heating and cooling costs by hundreds of dollars a year. 

Keep blinds and drapes closed when you can. This prevents sunlight from entering in the summer which will keep the house cooler and prevents heat from escaping in the winter. Install low-flow showerheads and faucet aerators to decrease water usage and water costs. Lower the temperature on your hot water heater by a few degrees to save on water heating costs.

Don’t Shop for Fun

If you often make unnecessary purchases when shopping, reconsider. You might be shocked at the amount of money you spend on things you don’t need or use. Make a list of everything you need when you go shopping and stick to the list. Avoid purchasing expensive or unnecessary items on impulse. For any non-essential item, wait a day or two before buying. After some time has passed you may change your mind about making the purchase.

Buy in Bulk

If you belong to a membership warehouse store like Sam’s Club or Costco you can often save a significant amount of money when buying staple items like toilet paper, paper towels, laundry detergent, bar soap, dish soap and other items you use daily in bulk. Even if you don’t belong to a warehouse store you can stock up when items go on sale.

Put Your Kids on a Budget

As kids get older their requests for money increase, extracurricular activities, outings with friends, clothes, dining out and entertainment can all be expensive. Set a weekly or monthly limit on how much you will spend or better yet assign chores and pay an allowance. This can be a great teaching tool. They will earn a set amount of money only when work has been completed. This teaches them the value of money and how to live within their means. The Benefits of Giving Children an Allowance

Save Your Change

If you often pay in cash, put all of your spare change in a jar at the end of the day, when the jar is full take it to the bank and deposit it into your savings account.

Think About Purchases by Hourly Wage

When you are considering buying a non-essential item calculate the cost by how many hours you will have to work to pay for it. This tactic puts each purchase in perspective.

Use Credit Cards as a Tool

Use credit cards that offer cash back and rewards and that don’t charge an annual fee. Pay your balance in full each month. The points and cash-back are only valuable if you’re not accumulating debt or paying interest.

Pay Your Bills on Time

Pay your bills on time and sign up for autopay. Autopay ensures that you are never late with a payment and won’t incur late fees.

Comparison Shop for Insurance

Comparison shop for homeowners and auto insurance. Before renewing your existing policy each year, check the rates of other providers.

Utilize Your Local Library

Sign up for a library card at your local library. Libraries are not just for borrowing books, you can use apps like Libby and Kanopy to borrow eBooks, audiobooks, movies, TV and music. They offer tons of other services as well, classes, tax and job assistance, and children’s activities. You can borrow tons of other things at the library aside from books. Some libraries lend tools, auto diagnostic equipment, video and board games, formal attire, camping gear, sports equipment, musical instruments, kitchen gadgets and more.

Save on Food

If you often purchase lunch out, pack your lunch instead. If you kids buy lunch at school limit it to a few days a week and pack other days. If you eat dinner out often consider reducing it to once or twice a week. Plan meals in advance and make a grocery list and stick to it. Spend a few hours on the weekend doing meal prep so your meals are prepared ahead of time, this saves time and decision making at dinner time.

There are small changes all of us can make to save money, even saving just a few dollars a month can put you on the path to financial success.