Simple money saving tips

Examine how you're saving money and compare it to your goals to help meet your aspiration.

Change spending habits

Budgeting is about learning and making adjustments in order to create better spending habits that help you get where you want to be. After you look over how you're spending money and compare it to your goals, make the adjustments you need to help you meet your aspirations. Watch the Changing Spending Habits video to get information to make adjustments to your budget.

A weekly allowance is a great way to treat yourself while getting disciplined over your new budget. Consistency is key. Once you land on a budget that works, stick to it. And, if you overspend one week, don't overcompensate the following week. Just stay with your plan. Here are a few more ideas to help you stay on track.

No spend days

How many days in a month can you turn into no spend days? Keeping track of your progress can help you see how well you're doing and keep you motivated. There are certainly days when not spending isn't an option and that's okay.

Set a weekly budget — starting on Monday

When the money you allotted for the week is gone, you're done spending for the week. This can help you be more selective during the week when choosing to spend at events, for meals out or a quick coffee — you name it. Especially if you're likely to spend more when the weekend comes, it can be helpful to get an idea of how much you will have left over throughout the week.

Cash only night out

Night on the town? Street fest? Weekend away? Only bring the cash you allot for the occasion. Dodge the surprise (or impulse) purchases.

Pool vs. solo-ridesharing

Ridesharing offers options! Have the extra time? Take a rideshare pool vs. a solo ride. You'll save some bucks and maybe make some new buds.

Create a spending plan

Start by making a spending plan before you get the money

Whether you want to spend it all, save it all or something in between, make sure it's on purpose. Having a plan in place for the money before it's in your account can help you resist the urge to spend it before you have it, or overspend. Money can disappear fast, especially when you're not keeping track of where and when it's being spent.

Align with your priorities

Making decisions about your money should feel good! You should align your money with your priorities. Maybe that means a combination of saving and splurging, or maybe you pay down a debt. The point is, you decide how to use that money to meet your goals and make progress in the direction you've determined.

Build up savings

Get a jump start on saving and planning for your future. Here are just a few options to think about when it comes to your savings plan:

Focus on your debt repayment

Make a list of all your debts, their interest rates and the remaining balances. Then, prioritize your payoff strategy, either focusing on your highest interest rate or lowest balance first. When you pay off one debt, roll the amount you were paying in to the next one.

Invest in yourself

Interested in starting a side gig or pursuing a new business opportunity? You can invest in your future by upgrading your laptop, taking that accelerated skill course or getting new headshots. Enjoy your hard earned money by making a plan you feel good about. While most prudent savers balance spending and saving, remember it's all about putting your money toward what's most important to you.

Additional tips on how to save money

  • Plan your grocery shopping. If you plan in advance the list of grocery items you need, it might save you from buying things you don't need. Look at coupons, deals and loyalty programs that might also help you in your goal of saving money.
  • Look at your subscriptions. Many times you might have signed up for magazines, streaming or music services or "fun boxes" that might not be relevant for you anymore. Decide if any of those services may be cancelled and continue adding to your savings.
  • Watch your utility bills. When you make changes to lower the use of water, gas or electricity, it will more likely show some savings on your bills.

Check out these other effortless ways to save money.

Your chapter 5 checklist:

  • Watch the Changing Spending Habits video
  • Download the Budgeting 101 Worksheet
  • Figure out an allowance amount that works for you

Next steps

Organize your finances by automating your spending

Once your spending is in line, the next step is to organize and automate it.

04-03-2019

Video Transcript

Please consult your tax, legal, or investment advisor regarding your specific circumstances.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

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