Want to Save More? 4 Steps for Beefing Up Your Budget
Finding more money in my budget every month is certainly a goal of mine. More money to sock away in my savings? That works for me!
Essentially, managing your budget — and finding more dough in doing so — boils down to two core truths:
- Spend less than you earn.
- Save the difference.
Now, those truths can get distorted depending on how much you make, your financial responsibilities and your lifestyle. If you need to send money to family members or if you live in a hot real estate market where rents are sky high, your ability to save might be impacted.
Let’s take a look at how we can cut money from your budget to ramp up your savings rate. This applies to all budgets. Whether you make the same amount of money or your income fluctuates monthly, there are a few ways to find more money there.
Step 1: Make a Budget
The first thing we need to do is to assess our budgets. If you don’t have one, you may want to make a budget. You can use an Excel spreadsheet or an app like Mint or YNAB — whatever works best for your style. (Personally, I use a spreadsheet to track my freelance income and Mint to track my spending.)
On your budget, list everything that you spend money on. And I do mean everything. This includes your essentials such as rent and food, as well as all the little things that make a claim on your money, like cigarettes, Amazon orders or Lyft rides.