Saving money is key to reach financial freedom.
However, more times that not saving isn’t taught (or caught for that matter).
It is something we want to do. We want to save. We start each month with a fresh perspective that this is going to be the month we actually save money. But, once again, it doesn’t happen the way you want.
You want to change and start saving money. Plus stick to it.
True facts on Americans lack of Savings:
- 4 out of 10 adults don’t have $400 to cover an emergency expense. (Federal Reserve)
- Over 40% of Americans have less than $10,000 saved for retirement. GoBankingRates>
- 78% of American households currently live paycheck to paycheck. (CareerBuilder)
- Less than 1/3 of Americans (32%) maintain a household budget. (Gallup poll)
- 43% of Americans spend more money than they receive in income and use credit cards to finance the shortfall. (Federal Reserve)
Okay, those spending, saving, and debt statistics are eye-opening and very scary.
This is the world we live in.
That is the reality of living in America. We are more focused on shiny, pretty objects than collecting dollar bills in our saving account.
However, in order to have the life you want and desire, you must learn the importance of saving.
Specifically learn how to save money each month. Plus you have to be willing to go against the “traditional culture of spending.” Don’t worry, you can join our Money Bliss tribe and know things can be different.
At the end, you have lots of tips on how to save money every month. But, the core of this post, will be how to set your money up to be saved every month. Small difference vs. big wins.
We want the big wins, which is more money saved every month.
To make sure you save on a consistent basis, then join one of our money saving challenges:
- These Monthly Money Saving Challenges You Need to Try
- Handpick the 52 Week Money Saving Challenge for You
People hate to save money because they feel like they are withholding money that they can spend today. But, they are missing the key point with saving money.
You are setting money away for a future use.
It may be saying no to something today in order to say yes to something in the future.
This is a money mindset that you must overcome in order to be successful in how to save money each month.
Saving money isn’t putting money in a deep, dark pit that will never be touched. It is money set aside for a specific purpose. One that aligns with your current money goals. And if you haven’t taken the time to figure out your money goals, then start doing that ASAP. Those should correlate to why you are saving money every month.
Your long-term financial success is dependent on your short-term thinking of saving and spending.
Why yes… you do need to live for today, but prepare (save) for tomorrow.
Take a quick inventory…what is your current mindset on saving?
How to Save Money Each Month
Personally, saving money each month is easier on my brain. While 52 week money saving challenges are popular, for us, everything rotates on a month and we use a monthly budget. So, try one of these monthly money saving challenges instead.
This steps can be used to save money each month or every week. The choice is yours.
Because in the end, the goal is to learn how to save money each month and that is all that matters.
1. Make It a Priority
Saving money needs to be a priority. Period.
In order, to actually save money each month, then you must choose savings first.
There is absolutely no other way around it.
- If you want to stop living paycheck to paycheck, then savings must be a priority.
- If you want to become financially independent, then saving money takes precedence.
Money is the avenue of spending and savings. You get decide how to spend it.
Related Reading: How to Stop Living Paycheck to Paycheck
2. Save Money First
Oh, boy… I was guilty of this for a very long time – save the remaining amount left in my checking account each month. Such, such bad advice there. Don’t do that.
You need to save money first.
Saving money is the first priority (or maybe second, right after giving). Either way both come first before spending a penny.
There are many methods of budgeting, but my favorite one is backwards budgeting because the emphasis is put on savings first.
Decide a dollar amount or percentage that will be saved from each paycheck.
In our course, we dive into how to create a budget that works for you. Something that is based off of your income and expenses. A guide that will work for your life. Learn more about My Ultimate Money Blueprint.
3. Set A Money Goal
Now, for the fun part… What do you want to do with the money you save?
Some things are boring like saving money in a HSA (health savings account) or for retirement (which may seem like forever away). But, they are important for your long-term financial success.
After you set money aside for those important financial accounts, what is your next savings priorities?
Money Goal Ideas:
- Be one of the adults who is prepared to cover an emergency expense with your emergency fund.
- Build a solid nest egg for retirement unlike the other 60% of Americans you don’t.
- Be one of the four households who isn’t living paycheck to paycheck and has a rainy day fund.
- Rock your budgeting skills unlike the other 2/3 of Americans.
- Be different that the other 43% of Americans and learn to live below your means.
Those are just a few ideas that can put you in the highly successful category when it comes to how to save money each month.
4. Set it Up Automatically
This step is huge and must not be overlooked!!
In order to truly be successful in saving money every month, then you need to put the savings on automatic and reoccurring.
This is the #1 thing I credit for our personal success in saving money. Don’t skip this step.
There are two ways to do this.
– Straight From Paycheck: This is for someone who needs discipline. You are prone to overspending or maybe not overspending, but spending every penny out of your bank account.
Ask your employer to divide your paycheck and deposit it in two accounts. One that you pay all of your bills from. The other one is a straight high interest savings account that you don’t touch under any circumstances.
– Transfer From Bank Account: This is for someone who doesn’t need the extra discipline or prefers to do it themselves. When a paycheck comes in, then money is automatically or immediately transferred out of the main checking account.
The main reason to do this is temptation. You can’t be tempted to spend money when you don’t see it in your account on a daily basis.
This is something I do and will always do.
5. Enjoy Your Progress
Once you have set everything up, you can sit back because saving money each month is happening automatically.
There is nothing for you to do except to watch your balance grow!!
Ways to Save Money Each Month
There are hundreds of ways to save money each month. But, we are going to cover the top 10 things you need to do. Then, you will start seeing saving success.
You can find an extra $100-500 minimum with any income level. Guaranteed.
1. Get Out of Debt
Those debt payments are holding you back. You are slave to the lender.
Until you pay off debt, you won’t be able to save at a fast pace. Too much of your monthly income is going to debt. That is something you need to swing the other direction.
- How to Get Out of Debt in 5 Easy Steps
- Best Debt Apps To Payoff DEBT
- 20 Quick Tips For Debt Payoff Motivation + Free Debt Thermometer
2. Start Sinking Funds
A sinking fund is money set aside for a specific purpose. This will help you from always being caught off guard with unexpected expenses or emergency money drains.
This is one of the best ways to start saving money each month.
Many of these expenses come up on a regular basis, so start a sinking fund and be prepared.
Related Reading: Complete Guide to Sinking Funds – Why They are So Important?
3. Eat Out Less
Convenience comes at a steep price.
It is easy to pay $5-20 per meal when eating out. Over the course of a week or month, that can add up especially if you are feeding a family!
This is the easiest place to save money and you will probably feel better with eating meals from home. Plus save $300+ a month.
Learn to Save Money on Food:
- Meal Planning 101 (plus save money each week)
- 20 Simple Ways on How to Save Money on Groceries
- Become a Pro at How to Meal Plan for a Month
4. Don’t Spend Just to Spend
Let’s face it… it is so simple to buy things that you don’t even think about the purchase. And many times…those boxes lay unopened for a week or more!
You need to cover your reason to spend money. What is the underlying issue?
In My Ultimate Money Blueprint, we start with uncovering your money struggles. Before we even look at how to budget or organize finances. That way you can finally see progress and overcome your past money issues.
If you are ready to start to save more money each month, then you must be prepared to critically look at your spending.
Two of the questions I always ask myself is… 1) does this item help me reach my current money goal? 2) Is this something we truly need or can we live without it?
Don’t just spend your hard earned money.
- The Vicious Cycle- Learn How to Stop Spending Money Now
- Ultimate Guide to a Successful Spending Freeze
- 35 Ways You Wasted Money This Year
5. Change Your Lifestyle
Remember the statistics above… almost half of people spend more than they make. That means their expenses are higher than income, which is a recipe for disaster.
There is no way to learn how to save money each month when you spend more than you make. Period.
Something has to change.
We live a different lifestyle than most people in our community. Our house holds half of the possessions as a traditional house this size. We limit the number of clothes in our closet. Our preferences is to play games and watch wildlife shows rather than go to the movies or other costly entertainment. We eat meals from home and pack lunches. We live this lifestyle for a purpose.
By living this lifestyle, we are able to save money each month. Then, we are able to reach our money goals and have experiences together as a family.
That my friend is a great reason to change your lifestyle to one that you can afford. I promise you will love it!
- Powerful Millionaire Habits that will Change Your Life
- Avoid the Trap of Lifestyle Creep and Reach Financial Freedom
- 10 Money Rules You Need to Live By
Save Money Each Month with these Tips
Like I said earlier, there are tons of ways to save money.
We highlighted the top 5 ways to save money each month, but the list doesn’t stop there. There are hundreds of ways to save money.
So, before you go, remember that saving money each month is important. You need to make it a priority.
Did you open your savings account to make your first automatic deposit? Those are habits of the rich.
That is the reason for learning how to save money each month.
Set yourself up for financial success today.