Automate, Date and Let Go of That Budget: 3 Tips to Save Serious Cash
Kyle Taylor: Hey, everyone, I’m Kyle Taylor from The Penny Hoarder. Got a couple of tips for you today.
First one: Automate everything. If you’re anything like me, I can barely remember to eat breakfast. The last thing I can do is remember some complicated financial checklist, so I automate all of my bills so that they’re paid on time. I automate my savings so that a monthly withdrawal is taken to my 401k and to my Roth IRA, and I even automate my fun money. I have a special account for eating out, shopping. So that way, I’m never tempted to go over budget.
Alright, the next thing to do: Tear up your budget. Now, I know that sounds a little ridiculous, but I like to think of budgets like a diet. C’mon, let’s face it, most of us can only stick to a diet for two to three weeks, and that’s the same with budgets.
So what you need to do is figure out exactly what your monthly expenses are. Figure out how much you need to save each month, how much needs to go to rent. Once you’ve gotten that total, everything else can go into a separate account, and that’s your spending money. That’s what I use for groceries, that’s what I use for clothing, and that way, I’m never missing a bill.
Next thing you need to do: Date yourself. Pick a date every quarter of the year to have a night where you look at your finances. Get a bottle of wine out. It doesn’t have to be a miserable experience, but this is the date where I look at things like, “Do I really need this subscription program? How am I doing on my savings goals? Did I save enough for retirement this quarter?” That way, I’m not thinking about it every single day of my life, but there’s a dedicated day where I can really check in with myself. If you finish the bottle of wine, who cares?
So there you have it. Three tips to save you some serious cash. First thing: Automate your finances. Second: Tear up your budget. And lastly: Date yourself.
For more tips on saving money, check out ThePennyHoarder.com.
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