Financial emergencies can happen at any time, and the best way to prepare yourself is by building up a savings account. According to the data released by the Federal Reserve, more than one-third of Americans don’t have enough money saved up to deal with a $400 emergency. In fact, most are living paycheck to paycheck and may find saving money nearly impossible with the rising cost of living throughout the country due to inflation. Thankfully, there are tips for how to save money in 2024 and ways to cut your spending in half.
Learn How to Save Money in 2024
The biggest and probably the most important part of saving money is knowing how much money you have and how much your expenses cost you.
Creating a budget is important because it can help you see your spending habits. A budget is a spending plan that estimates how much money you will make and spend over a period of time. The best way to do this is to look at your monthly expenses and monthly revenue – How much money is coming in? How much money is leaving?
You want to include every bill and subscription you pay when writing down your expenses. You also want to estimate your monthly costs for things like gas and groceries. Highlight the expenses you have to pay every month. These are things such as rent, electricity bills, water bills, loan payments, and more.
The next step is to find out exactly how much you are paid, and if you are paid weekly or bi-weekly. Organize your budget to start from the first of every month descending. This will show you when each bill is expected to be paid the full amount or will be automatically drafted out of your account. If an expense is automatically drafted, the business will charge your account or card on file on the due date without any extra steps on your part.
Consider Your Bills
The bills you want to ensure are paid in full are the most important ones – the ones you have highlighted. Rent, power, water, and any kind of borrowed money should be the first things you pay out of every paycheck. This ensures you have four walls and a roof, a place to shower, and a place to recharge.
Next, add up how much money you spend a month on non-essential subscriptions and other services. This can be Netflix, Hulu, Steam, Spotify, or other similar services. While it might seem like you’re paying a low price, subscriptions add up very quickly. These should always be the first expenses to be cut out of a budget. They aren’t required for you to live, though life outside of work may be boring for a little while.
Grocery prices are at an all-time high, but so is the cost of eating out. Choose a day to plan and prepare meals ahead of time. This can save you money and time every week.
There are countless ways to save money, but it all begins with your budget and how well you manage it. If you find yourself exceeding your budget, you may have to look into getting a second job to supplement your income or a higher-paying job.
How to Cut Your Spending in Half
In order to save money, you have to cut expenses. You have to decide what is most important for your survival.
Entertainment can be great, especially when living in a world that seems bleak and unattractive. However, most Americans will spend roughly $70 to $200 on subscription-based services alone.
Begin cutting out subscriptions and putting that extra money towards paying off debt or building your emergency fund. $70 may not seem like a lot right now, but the money can add up quickly.
Paying off debt or refinancing is another way for you to save money. Paying off debt is tedious, especially when you have a high interest rate. Max CashⓇ comes with a wonderful team that can help consumers find refinancing options or discover loans with competitive interest rates for their budgets.4 5
Other expenses that often go overlooked are cable, internet, and phone bills. Shop around for cheaper alternatives and inquire about any promotional deals for these services that you may qualify for. Insurance rates can depend on a lot of factors, but you can compare rates from numerous companies and ask about discounts.
Doing these few things can very easily cut your monthly expenses in half. While some things may not change, like your rent payment, you do have the power to change other things.
Weekly Savings Challenge 2024
Saving money can be hard, especially if you don’t know where to start. Listed below are a few weekly challenges you can participate in. To get the best results, keep the funds separate from your normal bank account. Utilizing an interest-bearing savings account is always recommended when putting money to the side.
52-Week Saving Challenge
Beginning on week one, set aside $1. On week two, set aside $2, and on week three, set aside $3. Continue this trend until week 52, when you’ll deposit $52 on the final week.
By the end of this challenge, you will have saved up $1,378. This is a great way to start your emergency fund or a general savings account for a larger purchase in the future.
The No-Spend Saving Challenge
The no-spend challenge is the easiest challenge to accomplish. It’s highly customizable, and you can turn it into a game! During this challenge, you’ll set tight restrictions on all of your spending, limiting yourself to only the basic necessities you’ve highlighted in your budget. You can cook at home and take the challenge the next step further by trying to clean out your cabinets and pantry by creating new meals with what you have on hand.
It’s tough to go bare-bones with your spending straight away, so maybe opt-in to do no-spend weekends. Find something free to do outside the house or maybe clean out that closet you’ve been eyeing.
Dollar Saving Challenge
$1 really doesn’t seem like a lot in the grand scheme of things. Finding a dollar-in-pocket change is incredibly easy to do, but if you’re tightly budgeted with the bare necessities already, this is the easiest challenge for you!
The dollar-saving challenge means just that, saving a dollar. Put away $1 every day for an entire year or $7 every week. By the end of it, you’ll have saved $365 to go towards making a larger payment on debt or restocking your cabinets with filling foods.
26 Week Saving Challenge
This saving challenge is fairly easy and laid out very simply. You can choose to participate for 26 weeks and walk away with those savings, but be warned, that saving challenges can become addicting! You’ll want to do this one all over again.
One week, you’ll put away $3. In week two, you’ll put away $6. On week three, you’ll put away $9 and so on. By the 26th week, your final deposit should be $78. In total, you will have saved $1,053. If you choose to do this challenge for the entire year, starting over after the 26th week, you will save $2,106.
Starting slow and building up your savings will help you adjust to the path of financial freedom and responsibility. Continue to cut expenses where you can and pay down the debt you have now. There is nothing more freeing than gaining control of your finances.
If you need help at any point along the way, Max Cash is here to help! Max CashⓇ and its partners can help you explore options for personalized financial management goals so you can get the full picture and access tools to set you on the right path.5
Whether it be budgeting, tracking variable and fixed expenses, setting goals, or planning for the future – Max Cash has your back!5
