One of the biggest reasons why many people live paycheck to paycheck is because they think they don’t have any money to spare for savings.” Honestly, you can’t afford not to save money in order to help get ahead financially.
Here are some easy ways to save some cash, even if you’re on an extremely tight budget.
A recent article in The Cut online touts the benefits of paying off your smallest debts first while paying the minimum amount due on your other balances. Dave Ramsey was the first person to pioneer this financially savvy technique called the “snowball method”.
Multiple studies have been done to prove Dave’s theory. Basically, by following this method, you can get rid of your smallest debts, then take the money you’re saving from those monthly payments and apply it toward your larger balances (on top of with the minimum payment).
As you continue to “snowball” your payments into larger ones, your credit card balances begin to be reduced more rapidly. This method allows you to apply increasingly more discretionary money toward your debt. It also helps to pay it off more quickly than either making minimum payments on everything or paying off the larger balances first.
Keep Spending in Check
Mint.com suggests following the “50/20/30 rule.” This is a great spending rule to apply when you’re in your 20s because it helps to establish budget guidelines that can help future goals be achieved. But, it’s never too late, so start applying this rule as soon as possible.
The rule states the following:
- 50% of your income can be spent on basic needs such as rent, groceries, and your gas/electric bill.
- 20% of your paycheck should be put away into savings and paying off debts.
- 30% of your take home can be spent on non-essentials like eating out, entertainment, travel, etc.
When you follow these guidelines for spending parameters, you’re far more likely to stay within a budget that can help you get ahead. Many people who have applied this principle have been able to keep debt low, save up for what they want, and go on more vacations.
Earn Some Extra on the Side
Savings accounts are as simple as money in versus money out. If you need to make a little extra cash to help you pay bills or add to your savings each month, why not get paid for online surveys?
They are quick, easy, fun, and very rewarding. Some serious survey-takers report making between $12 and $18 an hour. Many online paid survey jobs offer more than cash; you can earn points that can be cashed in for prizes or gift cards.
PointClub is one of the best paid online survey sites because we reward points for every survey you start. That’s right! Even if you’re unable to finish your survey because your baby woke up from nap or your neighbor wants to chat, you’ll still get rewarded just for trying.
Your points earned can be traded in for cash or gift cards, so don’t wait another day. Join for free today and get a $5 bonus for signing up!