7 Actionable Ways to Boost your Savings

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It can be easy to feel overwhelmed when analyzing your finances. Additionally, figuring out ways to save money every month can be quite challenging, especially if money is tight. 

However, it doesn’t matter if you are in the middle of your career or already thinking about retirement: it never hurts to cut down on costs and to keep more of your hard-earned money in your bank account.

Thankfully, these 7 actionable tips are an effective way to save more money every month.

1. Actually Make a Budget

While there are many misconceptions about how to budget, keeping track of your finances is one of the most important practices you can start to maintain your financial health.

In order to actually begin saving money, it’s important to know where your monthly spend is being allocated. Categorizing bills and setting thresholds for monthly spend is one way to keep costs under control. Additionally, tracking your spending will allow you to spot trends or the formation of bad financial habits before they escalate. You’d be amazed at how fast categories like eating out or entertainment can rack up!

2. Automate Saving & Investing

If you want to simplify how easy it is to save money each month, automate the process.

Thanks to technology, it has never been easier to automate your finances. Setting up monthly or bi-weekly deposits to a high interest savings account is a great option for beginners looking to build up their emergency funds. If your employer offers a 401(k) plan you can also enable automatic payroll contributions from your paycheck to make this an automatic habit.

3. Invest in Your Health

It can be easy to think of health-related spending as being a cost. However, the reality is that investing in your physical and mental health can result in tremendous lifelong savings.

It doesn’t matter if it’s a gym membership, a new pair of running shoes, or some form of counseling; your health should always be a priority. By maintaining a healthy lifestyle you can potentially avoid thousands of dollars in medical bills over a lifetime and increase overall quality of life.

4. Cut Out Unnecessary Bills

Thanks to your trusted budget, you should have a comprehensive overview of what you’re spending money on each month. If you take an honest look at your bills, you might even find there are some that can be cut loose.

Negotiating cheaper internet bills, cutting your cable or Netflix subscription for free alternatives, and getting rid of your home phone are just a few ideas you can use to increase your monthly saving rate.

5. Embrace Frugality

Coming to terms with the concept of frugality and making the conscious decision to integrate frugal living ideas into your life is one of the most powerful ways to save more money.

Frugality isn’t about being cheap or not enjoying life. Rather, frugality is simply about focusing on what truly matters in life and not spending money (or time) on frivolous things and purchases.

Look for simplistic, minimalist ways to incorporate frugality into everyday living. Cook at home, think twice before making a purchase, and never feel the need to purchase something just because you feel pressured by society to do so.

6. Purchase Quality Goods

On the note of frugality, one common mistake people make when trying to save money is to purchase the cheapest option for everything they buy.

While this works for some items, refusing to buy quality can actually come back to haunt you. If you are considering making a purchase for an item that is supposed to last a long time, don’t be afraid to invest in a higher quality item. Doing so will save you money in the long run since you won’t have to constantly pay for replacements. 

7. Take Advantage of Freebies

There’s nothing wrong with taking advantage of freebies in the form of cash back or loyalty rewards whenever possible.

Companies are willing to pay loyal consumers for their business and data, so why not make use of that fact? Between cash back credit card bonuses and reward platforms like Rakuten, it’s quite realistic to earn a few hundred dollars each year in cash back.

Just be sensible with your hunt for freebies. Only purchase a product you planned on purchasing anyway, and be sure to keep on top of your credit card payments.

Ultimately, saving money every month is possible if you keep track of your finances and adopt a health, frugal mentality.

Thanks to Danielle K. Roberts for this post. Danielle is a Medicare expert and author. You can find her work at daniellekroberts.com & boomerbenefits.com.