Major lifestyle changes and budgeting efforts can feel overwhelming, but we’ve got good news for you: making small adjustments on a day-to-day basis can create healthy financial habits that go a long way in allowing you to take control of your money.
Saving a few dollars here and there might not feel like taking control of your finances, but building healthy habits can lead to larger results. Sporadically throwing a whole paycheck into your savings account once a year will have less impact than consistent, small changes. Minor adjustments repeated in smaller intervals compound over time to create tangible results.
Think of it like starting a new workout routine. You won’t see huge changes if you go on one long run in a sudden fit of energy, but if you stick to a consistent routine, you’ll start to notice significant benefits over time. Savings work the same way.
Let’s take a look at some simple, everyday personal savings hacks that can help you save money and improve your finances.
Having a thorough record of your spending habits helps you to identify spending patterns that you may not have been aware of, allowing you to pinpoint unnecessary costs. You can monitor daily expenses with a variety of apps, like YNAB or EveryDollar, or even a simple notebook. To stay on track, try reviewing your spending each night.
A great way to increase your savings without thinking about it is setting up automatic transfers to your account. Oftentimes, you can use your employer’s payroll program to set up a transfer every payday. On a smaller scale, try daily transfers: $5-$10 daily contributions to build consistency. There are also a host of round-up savings apps, like Acorns or Chime, that allow you to contribute to your savings account effortlessly by rounding every transaction to the nearest dollar and directing the additional funding to a linked savings account.
Not all personal savings hacks have to revolve around putting money in your account. Sometimes, it’s all about planning. Buying lunch or coffee on the go is a very common—and potentially unnecessary—expense that you can avoid with some proactive preparation. Plan meals the night before to avoid impulse spending on your way to class or work. This not only saves you around $10 a day, but also leads to better health habits.
Other discretionary expenses, like going to a movie or buying an afternoon snack, can be a quick drain to the bank account when left unchecked. Set a budget for discretionary expenses like entertainment or snacks. Dedicating cash envelopes or prepaid cards to certain types of spending can help to easily manage your funds, and daily limits build financial discipline and prevent unnecessary overspending.
Here’s an easy personal savings hack that you can apply to everything from weekly groceries to pizza delivery. Search for sales and discount codes before you make a purchase. Free browser extensions like Honey can search the net for discount codes and apply them automatically before you spend more money than you need to. Consider using coupons, cashback apps, and loyalty programs.
Starting small and being consistent leads to healthy habits of financial mindfulness that can work wonders in the long run. Saving $10 a day might not seem like much, but adds up to $3,650 annually. Improving your savings can help you to reach bigger goals, like paying off debt, investing, or creating emergency funds.
Use these personal savings hacks to take control of your finances. At Credit Central, we believe in the power of healthy financial management.