These Budgeting Tips Will Help You Save Big

Unless you’re set to inherit millions from a rich uncle somewhere, you’re probably just like the rest of us when it comes to the need for budgeting your monthly expenses. So go ahead and use these practical budgeting tips that’ll help you stretch your paycheck as far as possible so you can save up for your big financial goals!

Utilize the ‘Kakeibo’ Method

Kakeibo is a Japanese term that means “household ledger,” and is used as a means to allocate finances in different areas. Here’s how it works: At the beginning of the month you jot down your income and necessary expenses in a journal, and then determine a savings target. Next, you record your daily expenses and add them together at the end of the week, and then later at the end of the month. Lastly, you go over a summary of the month’s spending and write it down in the journal, as well as your thoughts and observations. The idea is to incorporate mindfulness into your spending habits!

Leave Room for Surprise Expenses

You never know when you’re going to get sick and need to stay in the hospital for a few days, or when you have to fly back home across the country for an unexpected family emergency. This might mean keeping a savings account to which you allocate a certain percentage of your paycheck every month. And of course, be sure to leave a bit of cash for you to just enjoy your life so you don’t go totally insane with all of this constant budgeting!

Use a Budgeting App

It can be daunting to see exactly where your money is going every month (especially when you’re regularly spending more than you thought you were) but trust us when we say that a budgeting app will help you make better financial decisions. For example, the app Mint connects to your bank account and then tracks and categorizes your spending. It’ll also alert you when you’ve spent more than normal, when there’s a suspicious transaction, and when you’ve been charged ATM fees. Not to mention, Mint also reminds you when you have upcoming payments due, and credit monitoring – all for free, nonetheless! Pretty cool, eh?

Set Long-Term Goals

You’re never too young to think about your future, especially given how expensive things are in today’s world. For example, maybe your goal is to purchase a home one day, or to retire before you die (a lofty goal for young people today). Whatever it may be, set a bit of money aside every month for it. And don’t forget to always ask your employer about 401(k) plans they may have available!

Automate Bill Payments

Let’s just be real for a second, when you’re low-income, just looking at your bank account balance can be a whole stressful ordeal in and of itself. In order to save you from some of that stress, try automating some of your essential payments, like utilities or even rent (if your landlord allows you to do so). We promise that not being forced to go into your account every month and stare your depressing balance down will save you from a surprising amount of stress. Just make sure to use a credit card instead of a debit card, just in case you accidentally overdraft!

Don’t Get Discouraged

Of course, this is easier said than done, but make sure you leave some room for improvement and try not to get too discouraged when your budgeting doesn’t go perfectly according to plan. One mistake that people often make is to give themselves unrealistic spending expectations that are too rigid. As stated above, make sure to leave yourself a little cash that’s just for you!