How to save money from salary? are you one of those constantly wondering how exactly can you save money from your salary, because you find yourself always going broke and red before your next paycheck?
Well, it’s normal sometimes, but with these 7 practical tips, you can learn how to save money from your salary and even fund an extra side hustle.
There are many simple and tricky ways you can save money from your salary every month without going bare bones or pulling out all the hair from your head!
How to Save Money From Your Salary
1. Start a monthly money saving challenge
A monthly saving challenge is one of the best ways to kick-start a habit of saving money.
A monthly saving challenge will teach you how to save money each month, each week or year.
Monthly saving challenge is not difficult at all, you just have to set a particular amount of money you intend to save everyday or week, so you can have a tangible amount at the end of the month.
How do you use a monthly saving challenge to save money each month?
a) Track all your earnings and expenses, draw out a rough sheets containing all your earnings and expenses, work on those that need adjustment or those that need to be cut off.
b) Plan to save a particular amount each day and stick to it, you can plan a certain amount based on your current earnings and needs so you can actually stick to it.
If you are earning $1000 in a month, then you should plan on saving at least $10 everyday.
Just do your math and be comfortable with it.
2. How to Save Money From Your Salary Each Month: Adjust Grocery Budget
One of the best way to save more money from your salary is to reduce the amount you spend on food and groceries in your household.
Since food is one of the basic needs of every human, it is quite easy to get your funds sinking into it, if you do not take control and properly budget money for it monthly.
The average family spend almost $500 to $1000 a month on food alone and can go way up, if they indulge in eating out.
Working towards cutting out almost $300 from food expenses could save you money in the long run.
Here are some tips to help you save money on food.
- Try to use a meal plan.
- Take advantage of a meal planning worksheet to organize your meals and grocery list to help you save tons of money.
- Always show up at the shop with a grocery list to help minimize the chances of buying items you already have in your home.
- Buy easily preservable foodstuffs.
- Cook meals in bulk.
- Buy protein in bulk and refrigerate.
- Buy items that are in season.
- Do not buy pre-cut and pre-packaged food if you can.
Cutting out your entertainment budget is a great way to save lots of cash from your monthly salary, considering the fact that an average individual spend tons of money monthly for the sake of entertainment.
No one is saying you shouldn’t be entertained, but try to limit or cut out entertainment on the months you wish to go tight on your budget.
Some mindless overlooked entertainment that take away so much of our money includes:
- Paying for an expensive smartphone data plan
- Video gaming
- Love for gadgets
- Forgotten subscriptions
- Attending music concerts
- Gym membership
- Vacations, especially unplanned
- Spa treatments
- Romantic dates.
Cutting out these forms of entertainment could easily save you $200 to $300 a month.
How to Save Money From Your Salary Each Month
4. Spend less on housing expenses
Housing payments is one of the culprit digging into the funds of the average adult if not properly planned.
To cut down the cost on your housing you need to;
- Rent a cheaper place.
- Consider sharing your space with a roommate.
- Sell your home and purchase a smaller one so you can use the cash for other more important things.
- Use AIR BNB.
- Consider refinancing your home if interest rates have dropped significantly.
- Work to quickly pay off your house mortgage.
- Consider staying with your family if you are single.
5. How to Save Money From Your Salary: Save more money on utility bills
You can save more money every month by checking the amount you spend on electricity, water and repairs.
Save more money on electricity by using,
- your AC sparingly (switch to fan all together if you must)
- Use your water heater sparingly.
- Avoid ironing your clothe until absolutely necessary.
- Do not use your electric burners too often.
- Turn off all appliances when leaving the house.
- To save money on water, try to turn your tap off when not in use.
- Mend all leaky faucet.
- Troubleshoot easy repairs with a YouTube video rather than calling repairmen.
6. Try a no spend challenge
A no spend challenge for a newbie is doable when they are trying to save up for something in mind.
A no spend challenge is easy for people who have already mastered the habit of saving money.
You can try a no spend challenge in a week or some weeks in a row to quickly help you save up your target money.
To start a no spend challenge, it’s best to stock up your freezer with easily preservable foodstuff and have some basic necessities in place before you start.
Make sure you are mentally or physically prepared to start a no-Spending challenge and have a target need you are saving for to enable you get motivated enough to stick through to the challenge.
In as much as the challenge is a huge “feat,” it could be the perfect strategy that will help you save up money quickly or even master the habit of saving money.
7. How to Save Money From Your Salary Each Month: Budget Before the Month Begins
You need to create a monthly budget, even before the month starts. Why? Because calculating expenses is how you get ahead with your money.
It’s one of the most eye-opening ways to see how you spend your money, so you can start spending it in more effective ways.
In other words, you can decide to be in-charge of your money not the other way around.
These are hard but effective tips to help you save more money every month from your monthly salary.
Let’s start a conversation below!
Which of these methods do you use to save money from your salary? What is the most effective method you have used to save more money from your monthly salary?
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