Do you have savings goals?

I hope that you do!

As I have explained in a related article from last year “Why You Should Become A Budgeting Expert”, if you are serious about your savings goals you have to start using a budget. Budgeting will help you understand how you are using your money and where you have savings potential.

Budgeting can actually be a lot of fun, at least if you are a little bit into crunching numbers. Being able to save 5, 10 percent of your money each month just because you are sticking to your budget is a game-changer and I highly recommend doing it.

If you haven’t done already, follow the above link and download your “Budgeting Made Easy” Excel Sheet in order to start tracking your expenses and getting on the fast track to financial independence.

Saving money and budgeting ultimately go hand-in-hand. You can’t have one without the other. Saving money is the end goal, of course, but you need a detailed plan that gets you to your financial destination. The big question for everyone wanting to save money on a regular basis is: Where can you find those savings?
Here are some ideas for you that can save you hundreds of dollars each year.

Recurring Expenses

A good starting point for you to look for real cost savings is your recurring expenses such as subscriptions or utility bills. Recurring expenses are called recurring because they occur month after month, and you have SERIOUS savings potential here.

Take a hard look at your recurring outgoings.

What are your subscriptions? Do you pay for a gym that you don’t use anymore? Do you have a cable or Netflix subscription that can save you heaps of money? A standard Netflix plan sets you back $13/month or $156/year. This is money that you can easily save and use to build a solid financial foundation for your future.

Wasteful Spending

Every business has potential to save money by identifying and cutting waste. And the same is true for your household.

Everyone wastes money somewhere, and spotting this waste is a huge opportunity for you to save some serious money.

Are you using your air conditioning/heating excessively and inefficiently (open doors, windows)? Do you waste a lot of food? Do you make a lot of unnecessary trips with your car and waste fuel? Do you use clothes just once or twice and then give them or throw them away? Are you buying too much useless stuff that clutters your life and your house? Do you switch your appliances off when you leave the house or go on holiday?

Cutting back on these sources of waste can save you hundreds if not thousands of dollars each year.

Unnecessary Credit Card Debt

The average credit card unpaid balance in the United States is about somewhere around $6,000. Oftentimes people use credit cards out of convenience to finance impulse purchases that they cannot afford.

Credit cards are expensive, and banks hope that you will live above your means, and mess up when it comes to making your credit card payments on time. The average interest rate on credit cards is about 17-20 percent (depending on who you ask).

If you are using credit cards regularly, take a close look at your credit card statement and see how much money you are wasting on financing your impulse purchases. The best thing to do with credit cards, in my opinion, is to cut them up and never use them again. Always pay cash.

Takeaway

Every household and every family has potential to reduce their monthly expenditures and save money by spending money more sensibly and cutting back on waste. Remember: The easiest dollar saved is the dollar you didn’t spend. Go through your budget and look out for recurring expenses and waste that you can cut. In case you still haven’t done so, get started with budgeting hassle-free and right away with my FREE Excel Sheet “Budgeting Made Easy”.