Is it possible to save money and still have fun? It seems that everything costs money these days. From a day out together with your friends to a family BBQ, it’s not hard to drain your bank account with what seems like normal activities. How do people manage to keep up a social life and still save for the future?
It might seem impossible, but it isn’t! As long as you have a few money-saving tricks up your sleeve and know what you’re doing, you can keep living whilst saving.
If you need some tips, take a look at these different ways to save money for the future.
1. Analyze Your Cash Flow
Before looking at the best ways to save for the future, you first need to look at your current spending. Understanding where your cash is going now is going to be a big help in saving for the future.
Take a look at your income and expenditure, analyzing the last couple of months. Make notes of where you’re spending big chunks of your money, such as on gas or take-out food. Write down how much you’re spending on average on these things.
Once you’ve got a better idea of what you have been spending, you can start keeping track of future spending and comparing it. Use stub creator to create pay stubs from your work if you don’t get them already, and create a spreadsheet to record weekly spending – and always get receipts! Building this detailed record of your spending will instantly give you a better feeling of control.
You can use the records to see where you can save money, look at what’s important to you, and watch your spending improve over the coming weeks and months. Watching your expenses become less and less will be very satisfying!
2. Outline Your Money-Saving Goals
Why save money for the future? What’s your goal?
Without a reason to save it can be very hard to. You’ll have no idea how much you should be saving and so won’t know how much you can spend on the fun things in life. You’ll be setting yourself up for disaster!
So, before you start budgeting, take a look at your goals. Look at how much you’d like to be putting away each week, month, and year, and if you can then write down some of the things you’ll do with that money. These will be the reasons to save money for the future that you can come back to, keeping you motivated to save when you feel tempted to spend.
Once you know how much to put away, you know how much you can spend. That’s where the fun really starts!
3. Pay Yourself First
A great tip for stopping saving from feeling like a drag is to pay yourself first. This means that as soon as your income comes in, you immediately transfer the amount you need to save to a separate savings account. Leave this account untouched and don’t carry a card for it.
By doing this, you may not be tempted to spend the money. You also won’t miss it from your spending as you won’t have counted it in the first place! It’ll go in your bank and straight back out, leaving you feeling happier with the money you do have available.
4. Prioritize Your Spending
When it comes to how to save for the future, one of the best tips is to prioritize your spending. It’s true that you’ll have to make cuts when you want to save, but that doesn’t mean getting rid of all the fun! Instead, take a look at what you really love doing and make sure that’s where you put your money.
So, if you love your spin class but don’t really enjoy going to the gym, cut your membership and just pay for the classes. Or, if you love date night with your partner but think you and your friends could skip the weekly take-out night for something cheaper, you know what to do! You don’t have to cut all of your fun activities, but just limit them a bit.
5. Follow the Cut in Half Rule
If you find it hard to prioritize your activities, you don’t always have to cut them. Instead, follow the cut in half rule which will limit your spending on days out or evening meals.
Every time you spend money, see if you can cut your spending in half. For example, if you go out for drinks then just order one instead of two. Or, if you’re shopping and want two t-shirts, be strict with yourself and just get one.
By doing this, you can still keep up with the fun but in a more saver-savvy way!
6. Switch to Cheaper Activities
Another way to keep up your social life without splashing the cash is by switching to cheaper alternatives. If you enjoy eating out once a week with friends, switch it for a meal in, rotating the chosen house each week. You still get social time and good food, but you can ditch the huge price tag.
If you enjoy going to the gym, start running outside instead. If you like shopping, start going to thrift stores or stick to the sale racks. For days out, bring a bottle of water and snacks from home, helping you cut back expensive sandwiches from cafes.
Once you shift your mindset, you’ll start seeing cheaper ways to enjoy life everywhere you go!
Save for the Future Without Missing Out
Remember, just because you’re trying to save for the future doesn’t mean you can’t have fun. You just need to be a little bit more careful with where you put your money and make sure you don’t let your savings account go unloved.
For more lifestyle tips, be sure to check out some of the other valuable articles on our website!