Saving money is important, but it can also be difficult not to spend it on the latest goods that all your friends seem to have. Saving may feel like a burden now, but it will pay off in the future when it comes to making larger payments towards student loans, a place of your own, or a car. Here are some tips and tricks on how to save money for those of us who tend to spend more than others.
Create a Budget
A monthly budget is a helpful first step! You can start by using online spreadsheets like Microsoft Excel or Google Sheets. There are monthly and annual budget templates available on both applications to help you get started. If you work a part-time job, get paid a weekly allowance, or earn money from gigs like mowing the lawn or babysitting, some important things to include in your budget are: incoming and outgoing expenses, emergency fund savings, and
recurring weekly expenses.
> Helpful Resource: Sample Monthly Budget for Teens
Download Money Saving Apps
Having money tracking tools on your phone makes money management more handy than ever before! Personal finance apps like Mint and PocketGuard are free, user-friendly apps that can help you keep track of your day-to-day finances and expenses without having to break out your laptop or PC. If you have a banking account, both apps allow you to connect it to your profile for live updates. If you struggle to keep track of your expenses manually, the apps will remind you as long as your notifications are turned on!
> Helpful Resource: How Money Management Apps Help
No, this is not a math equation. Well, it is, somewhat. The 50-30-20 rule was created by Senator Elizabeth Warren (who you may know as a candidate in the 2019 presidential election). The rule says that you should spend 50% of your income on necessities, 30% for spending, and 20% for savings. If you don’t have recurring necessities to pay for like online subscriptions, or club memberships, you may want to consider saving 50% of your income and putting the other half of
your savings in spending. Or, you could put 30% to your spending, as Senator Warren suggests, and 20% to your college fund or retirement (It’s never too early!).
> Helpful Resource: The 50-20-30 Rule
After you’ve created your budget, downloaded the money management apps and divided your income into the three percentages, you may still find that you have trouble saving as much money as you would like. That’s okay! If you have a part-time job and receive an hourly wage, banks have direct deposit systems set up for you to put a certain amount (say, 50%) of your earnings automatically into your savings account. That way, you won’t have to keep a daily record of your spendings and savings. You’re not alone in personal finance. Let the banks, and your loved ones, help you!
> Helpful Resource: Direct Deposit Overview