If you want to know how to save 40% of your paycheck, we have all the tips you need!
Saving money seems hard at times, but it shouldn’t be. Is this the season to panic about finances? Not if you know these smart tips. If looking at your monthly spending and your income are giving you a major anxiety attack, we’re here to tell you it’s time to take a few deep breaths and reevaluate your financial habits.
With the right planning, patience, and tips, you can save up to 40% of your paycheck. And before you ask, you don’t have to sell your soul or make drastic compromises to achieve your goal. We’re pretty sure you already tried several tips and tricks and if nothing worked, maybe these ones will.
We’ve all been there and it happens to anyone, so don’t worry. This time you’ll succeed. We wanted to make sure we offered you the best tips we could, so we talked to different financial advisors about easy ways to put some money aside. If you want to learn how to save 40% of your paycheck, keep reading, because you’re going to love these tips:
1. Cut out 1-2 monthly expenses
If you want to save money fast, analyze your spending habits over two to three months, identify at least one regular monthly expense you could live without, and cut it cold turkey.
For some, it might be a premium Netflix subscription, for someone else it might be a too-generous data plan. I tried these tips myself, and I noticed that my culprit was online shopping, so I had to cut it out. However, someone else may be overspending on eating out.
It might sound harsh but think of ways you can compensate for those spendy habits without feeling deprived. If it’s a premium Netflix account, you could downgrade to a more affordable plan, for instance. Mix and match, and it will be easier to save 40% of your paycheck each month.
2. Wants vs. needs
Here’s another thing you should consider if you want to save 40% of your paycheck: draw the line between wants and needs. Go through your bank statement or credit card bill for a month and write “W” or “N” next to each thing you purchase. It might come as a surprise to notice that many of the things you get are only wants.
While it’s no problem to treat yourself every once in a while, remember that too many treats could put you in debt. Ask yourself how much you need an item before you get it, how it’s going to make your life easier, and how many things you could do with it. If you can’t answer, it’s probably a want.
3. Repair, don’t toss
If you want to save 40% of your paycheck and avoid overconsumption, you should repair items instead of throwing them away. A beautiful pair of shoes, a nice bag, or a comfy jacket might be a great addition to your wardrobe, but it’s also the kind of purchase that could leave you empty-handed by the end of the month.
Instead of throwing away your belongings the moment they get too worn out, consider repairing them (especially if these items are useful and bring you joy). You can either try to repair them yourself or take them to a professional. This might not be extremely cheap but is still more affordable than buying a new item.
4. Go with big bills
Do you prefer to carry cash? Then you should stick to bigger bills. Believe it or not, carrying larger dollar bills, such as $100, can help you save 40% of your paycheck in the long run.
This tip has a psychological effect on your mind, making it harder to “break the buck.” If you do, having smaller bills will automatically make you more likely to shop.
Other than that, some stores simply don’t accept larger bills because it’s harder to give change. Think of a simple plan like this: imagine that your budget for expenses is $350. Get three bills of $100 and one of $50. Test this and see how much you manage to save by the end of the month.
5. Use a money-tracking app
Another trick financial experts recommend to save 40% of your paycheck is a money-tracking app. You can use services like Quicken or Mint to see all your financial accounts in one place.
By following this tip, you’ll constantly have a clear vision regarding where you’re heading from a financial point of view. If you download Mind, you’ll have complete access to your data through your mobile device and website, on both Android and iOS. Moreover, this app will track your money for you. It will send you a notification to pay your bills or to stop spending when you go over the budget you set.
6. Big happy vs. little happy
Have you ever wondered what makes you extremely happy and what only gives you pleasure within a specific moment? For many people, big happiness is having fabulous experiences, being with the people we love, or achieving the things we’ve worked hard for or waited a long time to obtain.
As for the smaller things we chase, these are usually part of the little happy. Think of them as things that only bring short-term happiness and aren’t very fulfilling.
For instance, going to a fancy restaurant for dinner might feel satisfying at the moment, but unless it’s not something you really want to experience, it might not offer long-term fulfillment.
On the other hand, going with someone special to a concert or show you’ve been excited for a long time to see might be the kind of thing that will provide happiness and fulfillment.
Of course, things are different from one person to another, so pick your spending battles and it will be easier to save 40% of your paycheck.
7. Learn what your triggers are
What’s your go-to activity when you’ve had a tough day and need to feel better? Are you tempted to treat yourself to a fancy meal or overspend in a clothing store, bookstore, or swap meet?
Once you identify the moments when you are tempted to spend money, it becomes easier to recognize unnecessary purchases and prevent them. Make sure you try your best to rewire your behavior and avoid the triggering places as much as possible.
It might not be easy to stop this behavior, but a little goes a long way. Don’t forget that there are also many things you could do at home to make yourself feel better without spending too much money: baking your favorite treat, cooking a new recipe, taking a bubble bath, doing a face mask, trying a new workout routine, and so many other things.
Do you know any other methods to help you save 40% of your paycheck by the end of the month? If you want to share your tips with us, feel free to leave them in the comments below! If you find this article helpful and want to know more, let us know, and we’ll provide you with part. II! Until next time, here’s another post you don’t want to miss: Self-Made Millenial Millionaire: 7 Frugal Habits She Still Keeps
