Are you living paycheck to paycheck or need to start saving money this year?? You are not alone.

To most managing finances is boring but then most of us are guilty of needlessly giving away our money. The main cause of this is the failure to control finances effectively.

Discover how easy it is to cut the cost of monthly outgoings and build a rainy day fund, when your income is low.

Saving money each month can feel like an impossible task however you don’t need to win the lottery to get a little extra cash in your pocket.

News Flash! You don’t have to cut out all of your favourite things in order to save money.

The get started, focus on what you can do, not what you can’t. Effective saving doesn’t mean saving a specific amount, the point of saving, even if it’s a small amount, is to start building the habit.

Here are 7 simple and highly effective ways to start saving extra cash today:

1. Record everything / Make a Plan

The first most important step to start saving is to look at your outgoings every month and analyse ways you can cut costs.

If you don’t record all of your incomings and outgoings, you won’t ever know how much you need to save. 

Write down a list of your outgoings each month.

Start to organize that list into various categories and make sure you know the total number. These may include groceries, bills, gas. 

Arrange it each month so that ALL of your bills and savings amounts are taken out on the day your paycheck arrives.

This way any money that’s left over is your spending money that you can use completely guilt-free.

Manage your finances better now, so that you enjoy it in the future. Staying on top of your bills and making a record of all incomings and outgoings can help save you thousands. 

2. Cut down on outgoings

Work out way to cut down on your monthly outgoings. A BIG SAVER is to cancel under utilized subscriptions.

It could mean quitting the gym you ONLY visit twice a month & working out at home, or looking for a better mobile or broadband deal.

For example, just last week, I saved $15 a month by switching broadband providers at the end of my “deal” contract PLUS gained $65 cashback via Rakuten.

“Save money by eliminating debt”

Start cutting costs with any existing debt you have, if you want to save money. This could mean shopping around for a new 0% on purchases credit card.

Making the switch, as long as your credit is decent, could save you hundreds of $’s each year in interest alone.

1. Start by listing all your outstanding debts
2. Work out which debt charges you the most
3. Start Paying off the debt with the highest interest charges in larger monthly chunks

It doesn’t matter if you don’t have enough to pay the full debt off at once. Work on building your credit so you can move the balance to another credit card with 0% charges. 

Start cutting the monthly subscriptions or services you aren’t using. 

Check out 27 Things to Cut from Your Expenses When Money is Tight.

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3. Always look for cashback

Did you know that you can earn money just for using websites you were going to use anyway?

Cashback websites are a great way to save money on things you already buy on a daily/monthly basis.

They will reward you with cash or vouchers, when you use their link to purchase goods or services.

Websites such as Quidco, Rakuten and Swagbucks offer amazing cashback rewards on a variety of goods and services. So definitely check them out!

Something as simple as completing your usual weekly grocery shop will ensure you earn that little bit of extra cash to add to your savings pot. In fact, if you’re a frequent online shopper, you could be earning thousands a year by using a cashback site.

Don’t worry, they’re not a scam!

The way the sites make their money is by sending customer (like you) to websites, earning commission as a result.

You’ll get a piece of that commission when you sign up!

4. Pack your lunch

I know, I know. Not the first time you’ve heard this.

But that’s only because it works!

Challenge yourself to lunch prepping each week. It’s incredible how much people spend on bought lunches each week.

If buying lunch at work costs $7, but bringing lunch from home costs only $2, at the end of the year you would have an incredible $1265 to put aside in an emergency fund.

Also, plan your meals out for the following week, go through your cupboards, fridge and freezer. Look at the food you already have and start to plan recipes you can make.

5. Save in the right place

Having a dedicated savings account separate from you checking account is extremely important.

It reduces the temptation to borrow from your savings.

Plus if you know you have a set amount of money to spend each month, separate to savings, you’ll be more conscious of your spending habits.

Do not leave savings in your current account. Having an automatic transfer into a savings account can be a huge help to help you save each month.

High-yield bank accounts are a great idea because they’ll offer you a higher rate of interest each year! 

Bear in mind with these accounts that you usually have to open the account with a large deposit and you will have limited access. 

Alternatively, if you’re in the UK, take advantage of your cash ISA. These are savings accounts you NEVER pay tax on.

There are cash ISA’s to suit suit all shapes and sizes so check them out.

6. Shop around before you buy

A great tactic saving money is whilst your shopping!

Negotiating  on the things you buy is something that everyone should start practicing right now!

Before making a decision on any major purchase you should definitely shop around by trying to find at least 3 different suppliers.

You’re almost guaranteed to save money on all small and large purchases. 

Comparison shopping is the ultimate resource for saving time and money! There are sites that are dedicated to comparing everything from energy to the cheapest broadband provider. Use them!

Make sure you call up your current broadband or mobile contract provider and let them know that you have received cheaper tariffs from other suppliers & that you’ll be going with the best one available. 

This is such a simple strategy to save money and will almost guarantee that the supplier will offer you a competitive price. After all , if they’re smart, they WILL want your business! 

It doesn’t cost you anything, so why not try today.

7. All about the Side Hustle Baby

My all-time favorite way of making and saving extra money is by starting a side hustle. A way for you to make extra cash separate to your full time job.

The good news is there’s something for every schedule and skill set these days.

I have dedicated a blog specifically for the best side hustles in 2020 (specifically ways to make money online), so check it out here.

Summing things up..

You can save money every single month just by changing a few of your bad money habits.

If you follow the above savings tips you should be able to save thousands every year.

Check out my post on the 28 Money Saving Hacks I used to Save $500 every month right here >>

Good luck on your savings journey and let me know how you get on!