Shocking Secrets To Save Money From Your Salary
If you’re looking for tips on how to save money, you’re in the right place. Take a look at these strategies that can help you save money from your salary.
Saving money should be at the very top of your financial to-do list.
Break your paychecks down
Go over your paycheck to see how much take-home pay you have to work with.
Your take-home is what’s left after your employer takes out taxes, insurance and any other deductions, like 401(k) plan contributions from your salary.
From your take home pay, divide your paycheck into four different places.
- 10% for your savings
- Another 10% for investments
- 10% for your sweet tooth. Treat yourself to whatever you need so you enjoy life.
- 70% for your needs and expenses
Make your debt payments less expensive
Think about how you can make your debt payments less expensive.
Refinancing your student loans, for example, can help you get a lower rate.
This can also lower your monthly payment, giving you more money in your budget to save.
The same is true for transferring high-interest credit card debt to a new card with a 0% introductory promotional rate.
Earn more money
If you’re falling short of your savings goal, maybe it’s time to earn more.
“There are two ways to save more money: earn more or spend less,” says Ben Watson, CPA and personal finance expert at DollarSprout.
“The best way is to do both at the same time: take on extra hours, start a side hustle, mow lawns or go crazy selling unused items on Facebook marketplace while taking a hard look at your budget to see what you’ve been wasting money on,” says Watson.
Automate your savings
Once you know how much you need to cover your bills and expenses, you can set money aside from your paycheck to put toward your savings.
There are two simple, yet highly effective ways to do this:
- Set up direct deposit into your savings account from your paycheck. This way, the money goes straight to savings every payday.
- If your employer doesn’t offer direct deposit, you can set up an automatic savings transfer from checking to savings each time you’re paid. You just choose the amount to save and the frequency you want money transferred and you’re done.
These two savings hacks can also be a great way to build your emergency savings fund or add money to savings for a long-term goal, like a down payment on a home.
One more step is to start investing. To know where you can invest in the initial stages of your career, you can check out this blog.
Making a budget, savings, investments can seem too complicated to understand but it is not.
It is the best thing you can do to secure your future.
They say that life is short and you shouldn’t worry too much about the future but it’s always better to be prepared to deal with tough situations.
So go on, have fun but also, don’t forget to set aside a good chunk of money in your savings account.