For some, setting and sticking to a budget may feel more easily easily said than done, but there are some financial hacks to help you save money. There is usually some wiggle room in even the tightest of budgets, but you will have to buckle down and do the work if you want to start building your savings account.
Here are some financial hacks to help you save money.
ValueWalk's Raul Panganiban interviews Dr. Kathryn Kaminski, Chief Research Strategist at AlphaSimplex, and discuss her approach to investing and the trends she is seeing in regards to quant investing and hedge funds. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with AlphaSimplex's Read More
Financial hacks to save money: #1 automatic savings plans
One of the easiest financial hacks to save money is an automatic savings plan. Some banks make it easy to set up these plans so that money is automatically transferred from your checking account to your savings account on a particular day of the week or month.
Traditionally, people have been advised to pay themselves first out of every paycheck, but for those who are low income, that may seem like a pipe dream. However, most people can save something, even if it's only $10 or $20 a month. After a while, that savings starts to add up, even if it's only a little bit every month.
By setting up an automatic savings plan, you don't even have to think about saving money every month. With the money automatically shifting into your savings account, you won't have easy access to it. For some people, just moving money out of their checking account and into a savings account is enough to get them to save money because they don't spend it when it isn't in their checking account.
#2 and #3 Shop by what's on sale and plan your menus
You might not think that any financial hacks can help you to save money on groceries, but it is possible without becoming an extreme couponer, which is almost like a full-time job. The easiest way to save money on groceries is to read the ad your grocery store puts out and then plan the week's meals according to what's on sale.
Doing your meal planning in this manner will not only save you money but also force you to become more organized in the kitchen. It will also help you save time because you won't find yourself running to the grocery store every other day to get something you forgot for a meal you plan to make.
Reading the grocery ad will also enable you to see if the things you always buy are on sale. You can then stock up on them while they are on sale.
One other financial hack to help you save money on groceries is keeping an inventory of the groceries you have. This will not only keep you organized but also prevent you from buying things you already have. It will also keep food from going to waste because you bought more of something than you can consume before it spoils.
Three other financial hacks to save you money
One other area people spend money without realizing it is on subscriptions they hardly use anymore. It's pretty common to set subscriptions up to renew automatically on your credit or debit card. The problem is that if you set them and forget them, you could end up paying for subscriptions you don't use anymore.
If you don't already take the time to do so, you should set a plan to review your monthly subscriptions and charges at least once a month. Not only will this keep you from spending money on a subscription you don't use anymore, but it will also give you an opportunity to think about the subscriptions you don't use very much. If you discover that you're using one of your subscriptions less and less often, it may be time to cancel it entirely and save that money instead.
One other financial hack to save money is to continue living like you're paying a bill after it goes away, but save the money instead. For example, when you get your car paid off, you should continue to set aside the money for the payment as if you were paying it, only this time, put the money in your savings account instead. This is an excellent way to save up for a new car or at least a down payment on one.