HOW TO SAVE $200 a month
Currently, we are a family of 3 and there is one in the oven so we will be soon be spending a lot more. It's important to evaluate your expenses especially when a baby is on the way, or moving etc. Here are some tips on how to save at least $200 or more a month. The amount saved ultimately depends on you and what you are willing to do about it.
Bring on the budget
One of the very first objectives to saving, is to create a budget and know how much you spend vs. how much you make. Go back 3 months into your account and see. It's not going to be exact, because the seasons and weather play a factor on bills, and things do pop up unexpectedly. 3 months is at least going to give us a number to start with.
Next, make a list and stick to it! If you go into a store hungry and have no idea what you're getting, you're going to spend more. If you desperately need shirts and end up buying a pair of shoes and a video game instead, what happened to your plan? You could only afford shirts and now you either can't get them or charge them on a card and hope this day never happened. Researchers have shown that even if you have a list, and start throwing things in the cart, you're going to spend at least 20% more.
How do you pay?
If you pay with a credit card that has incentives or cash back, that's great! These cards only work if you pay off the balance monthly.I get 5% back on my Target card, but if I don't pay it off, I'm going to be charged a 20% interest fee. If you can pay everything off in a month and are one of those people, this is for you. If you can't, try the cash option.
Now cash is great for people that have a spending problem or who are serious when sticking to a budget.
You don't earn cash back, but if you have 100 bucks and only spend that 100 and stop, you just saved yourself x amount of dollars from going over.
A debit card is your money, but it's in the credit category. You never really know how much is in your account, because charges are pending and it only takes a swipe to spend more. According to the D&B Market Research firm, people that use cash spend 12-18% less than credit and debit card holders. I recommend cash to anyone that really wants to save.
Do coupons matter?
This is a big debate! My answer is yes and no and here's why:
The negatives
Some crazy coupon cutters waste 8 hours a day to try and save 20 bucks! Family moments are wasted and the potential to earn in other ways, are completely lost. You waste a ton of ink and paper printing out coupons you will never use and trust me, I've done that. You also tend to buy things you don't need because you have a coupon which ultimately drives you to spend more.
The positives
It's insane how much money you really can save. If you're on a strict budget or trying to pay off debt, there's a light at the end of the tunnel! It makes you feel good when the cash register rings up $85 dollars and you only have to give her $30. 55 dollars that you just saved, can now go towards paying off that debt, a vacation, or that little treat that gives you joy. Notice I didn't say, the total was $85 and you spent 2 bucks.
My time is important and to get to 2 bucks, I just wasted a week hunting for a deal, and now I have 10 ketchups, 5 boxes of cereal when I already have 4 at home, a bag of cat treats when I don't even have a cat, and all of these sale items that don't even add up to a meal. Counter in the factors. Save when it's a deal that fits your lifestyle.
Compare stores
When you go to more than one store, consider in the factor of time spent, money saved, and if you're spending more in gas. I generally go to Target to buy household and miscellaneous items, and Bilo for my groceries. Comparing stores and shopping at maybe 2 stores will save you. If you're driving all around town to buy mustard here, toothpaste there, think about what you're doing and if it's really worth it.
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