Trim Your Spending and Boost Your Savings

money

moneyManaging personal finances can be quite the challenge. You already know that saving money is very important — the challenge is in doing it. Managing your finances well is where the path to financial freedom begins. It helps you clear your debts and save money for your future.

Evaluate your income and if you think your salary isn’t enough to help you save, review your lifestyle and make some changes. Be inspired by the Harvard graduate Joe Mihalic who paid his $90k grad school debt in a year through lifestyle changes and tons of discipline.

Save Money on Transportation

Use public transportation. Doing so will help you save money on gas and car maintenance expenses.  It’s also wise to sell a vehicle that is rarely used. You can beef up your savings accounts with the proceeds.  If public transportation is not an option where you live, then at least make the effort to keep your vehicle in excellent condition. Keep the tires properly inflated; filling the tire to the maximum recommended amount improves your gas mileage.

Save Money on Your Credit Card Fees

Pay your balance in full every month, so you won’t pay for the interest. Ask the bank if they can switch you to a low-rate card. To avoid paying the high interest rate of credit debts, apply for a debt consolidation loan.

Save Money by Reducing Your Cost of Living

Avoid eating out. Preparing meals at home and dining with the whole family is less expensive. It’s also an opportunity for the family members to bond.  You can also save money by quitting drinking and smoking.

Budgeting is important to save money. The budget is your guide on how much you can spend on certain things or activities. You need to set a realistic budget, according to the Kalsee Credit Union. When you create a budget, be realistic about your income.

Trim your spending and increase your savings by changing your lifestyle. It’s not easy. But think of the peace of mind financial freedom can give you.