Money-Saving Habits For Financial Freedom
Being a young, newlywed couple, my husband and I are the furthest thing from “rolling in dough.” Since moving in together, we’ve taken the first steps to being financially responsible by starting a savings account to begin our life together, and additionally, we’ve made a plan to address paying off my husband’s student loan debt in the years to come.
As young professionals just starting in the money-making world, we both have been studying up on money-saving habits to incorporate into our day-to-day lives.
Here are some tips we have found to be useful in our fiscal journey and ones we think could be beneficial to you as well.
Setting goals is the first step to saving money and digging yourself out of debt.
Once you establish your goals, you must set deadlines to reach them.
Some of my goals include:
- Saving enough money to be able to buy a house
- Putting money in a savings account or investment account
- Being financially capable of paying off my husband’s student loans
These three goals all have different timelines, but recognizing them is valuable to the process.
Though your money-saving goals may begin as dreams, remember that a dream can always become a reality with enough hard work and dedication. (I write about this further here)
Once your established goals are in place, determine which are most crucial and attain them in that order.
My goal of being debt-free takes first priority over my other ambitions of investing and saving.
Once our debt is gone, we will have more financial freedom, as interest of loans will no longer be accruing.
Continue To Learn
Those who are good with money are always continuing to learn and expand their knowledge on the subjects of saving, investing, and paying off debt.
I’ve found that podcasts and books by experts in the field such as Dave Ramsey are helpful tools for anyone wanting to learn more about understanding finances.
Follow a Strict Budget
Following a budget is a necessary evil when it comes to saving money. Budgeting isn’t about limiting yourself; it is about making the things that excite you possible.
Plan on setting out the exact amount of money needed to cover bills, groceries, and other monthly expenses and invest the rest in yourself. The key to saving is living below your means.
Here are some easy ways to cut your spending:
- Don’t go out to eat as often
- Buy your groceries in bulk
- Keep your house energy efficient by cutting off lights, water, and air when not in use.
Multiple Bank Accounts
Having more than one bank account for all of your money helps keep you organized.
By creating a checking, savings, and emergency account, it makes your money easier to track.
It also keeps you from touching the money you’re trying to save.
Since setting up my accounts this way, I have been much more organized and have found budgeting to be less complicated.
Avoid Credit Cards
Credit card use can easily lead to overspending. Because of this, you should never use credit cards for daily expenses.
Instead of using a credit card, use a debit card or cash.
Keeping a credit card in your wallet is perfectly fine, but should be only used in emergencies. If used, it should then be paid off ASAP with your emergency fund account.
Since implementing this rule, I have done a much better job of keeping track of and managing my money.
"If you can't pay cash for an item, you can't afford it. Don't let monthly payments become a way of life for your family."
I have found that those who are now financially well-off have not always been that way; their funds have developed by putting in the time and effort with tips like these.
Imagine what your life could be like after a year of carrying out these tips.
What could you buy, invest, or save for with all of the money preserved that year?
You could easily find yourself just as well off.
"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for."