According to Bankrate’s latest Financial Security Index, 28% of U.S. adults (nearly 3 in ten people) don’t have any emergency savings.
The survey also found that one in four U.S. adults has a rainy day fund, but that it’s not enough to cover three month’s worth of living expenses.
Do you want your money to go further? Then keep reading to find out our top tips when it comes to making the most of your money.
How to Make the Most of Your Money
Budgeting and planning for your future can be difficult, but there are a number of ways you can spend your money wisely and start saving more.
The first thing you need to do is understand your income and expenses.
A good way to work out your income is by checking your pay stub. Pay stubs detail how much money you receive (your net pay) each pay period. Ask your employer for a pay stub and use a check stub template to work out how much money you have coming in each paycheck.
A good way to understand your cash outflows is to make a list of your monthly expenses. For example, the amount of money you spend on your mortgage or rent, the cost of monthly household bills, and the amount of money you spend on other things such as food or insurance.
There are a number of budget planners that can help you track and analyze your monthly outgoings. Alternatively, you can just write them down and keep an eye on how much you spend.
Plan for the Future
It might be useful to write down a list of financial and saving goals. You should have short, medium, and long-term goals.
A short-term goal might be to go on a nice vacation this year. So, you should work out how much this will cost you and put money aside each month to save for it.
A medium-term goal might be that you want to buy your own house. So, you should work out the deposit and the mortgage costs and put some of your monthly wages into a savings account.
While a long-term saving goal might be to have a certain amount of money set aside for your retirement. This might mean setting aside a small amount each day, week, or month and then putting aside into a high-interest saving account.
How to Spend Your Money Wisely: 6 Ways to Save Money
Once you’ve worked out how much money you receive, spend, and want to save each month, you can then work out how much you have left. This is what’s known as your disposable income.
Your disposable income is the money you have to spend after bills. However, if you want to make the most of your money, then you might want to think about savvy ways to save it.
Everyone likes to treat themselves from time to time, whether it’s buying a coffee or going on vacation. Making your disposable income go further doesn’t mean you need to save every dollar you have. It just means you should be more aware of how much you’re spending and how much you’re saving.
1. Reduce Your Bills
Many people are spending too much on their bills. A quick online search and comparison can help you find the best energy and household deals for you.
Looking for reliable energy suppliers or internet providers that offer low-cost deals can significantly help reduce your bills and help you save more money.
2. Eat Out Less
Eating out at restaurants or buying meals every day for lunch can rack up quite a costly bill. But there’s such a simple solution that can be fun and can save you more money.
One way to eat out less is by switching restaurants with friends to home-cooked meals and gatherings. Another way to spend less on food is by making your own lunch before you go to work each day. Another way to spend less on drinks is by treating yourself to one cafe-bought coffee a week and making your own the rest of the time.
3. Save More and Exercise More
Commuting to work is inevitable, but you don’t need to spend money when you do it. Consider ditching the car, bus, or train and try walking or cycling to work instead.
Not only do you get to save more money, but you also get to do more exercise. What’s good for your wallet is also good for your health here!
4. Find Cheaper Alternatives
If you need some new clothes or furniture, ditch the expensive high-street shops and look elsewhere. There are hundreds of thrift stores that are filled with great clothes and furniture at a much more agreeable price.
You can also try to be more vigilant when it comes to doing your food shopping. Keep an eye out for cheaper alternative food products or for retailers that are offering discounted deals on the products you like.
5. Use Discounts and Codes
Saving money doesn’t mean you can’t have fun. If you enjoy going to the movies or theme park then why not find a discount or a code that can help reduce your costs?
There is a range of discounts and codes you can find online for a whole manner of things, including theme parks and movie theatres. All you need to do is a quick search and you could save yourself a lot of money.
6. Spend Time with Your Loved Ones for Less
Spending time with family and friends doesn’t have to be expensive. Instead of eating out or going to the movies with your loved ones, why not think of free activities you can do together instead?
For example, you could have a board game evening with your family or go for a walk together. Or try inviting your friends round and cooking them a homemade dinner.
Implement Our Tips on Making the Most of Your Money
If you’re tired of living from paycheck to paycheck, try implementing our tips on making the most of your money. Remember to make use of free budgeting apps and other useful tools to help you keep track of your monthly spending.
Check out some of our other articles all about money, finance, health, business, and much more.
