Purse strings around the country are reaching their absolute limit.
The majority of Americans live paycheck to paycheck. Yet monthly income often doesn’t stretch far enough, meaning increasing numbers of people are taking on more debt than they can afford.
Indeed, total consumer debt in the US is now up at a staggering $14 trillion. Yes, trillion- with a ‘t’!
Clearly, people are in financial dire straits.
In such a predicament, the idea of actually saving money can seem ludicrous. The question of how to save money quickly may never even cross your mind! That’s a danger you never even try.
In truth, it’s far more possible than it might feel. Almost anybody can make swift financial savings. You just have to know how to do it. Looking for inspiration and ideas? Let us help.
Read on for 7 top tips for speedy saving.
1. Figure out Your Current Financial Situation
It’s time to get real.
The first step to overcoming financial struggles is to know the current situation. When times are tough, taking a cold hard look at your finances isn’t easy.
It’s far simpler to push it to ignore the problem and hope it goes away.
Do that, though, and nothing’s ever going to change.
Instead, sit down and spend a couple of hours getting your affairs in order. Make the effort to realize how much money comes in, and how much is going out. Stack up all of your debts to truly understand how much you owe.
With this complete, you have laid the foundations for positive steps forward. Now you know the extent of the problem, you can set about correcting it.
2. Set Yourself a Budget
Budgeting is a dirty word in today’s world.
We live in a materialistic consumer society. What’s more, we have a penchant for instant gratification. The very notion of frugality and saving can be laborious!
Living to a budget is one of those things most people know makes sense, but never actually do.
Time to change that. Having worked through step one, you now understand how much money you have to play with.
You can see the essential outgoings (food, rent, utilities…), and where you’re overspending.
The next stage is to rectify issues and set a viable plan for your monthly expenditure. Of course, setting a budget is relatively easy. Sticking to it is the problem!
3. Cull the Financial Herd
Congratulations on setting your budget.
Now it’s time to get some quick wins. With a solid idea of where you spend your money, you can identify immediate areas you can cut back.
Subscriptions offer a prime example.
Huge numbers of people have a gym membership and never use it. Many people pay for Netflix subscriptions when they never watch it. Others have smartphone add-ons they rarely use.
And so on.
Can you see anything like this in your own life? If so, you’re literally throwing money away. Cancel those subscriptions!
4. Downgrade Your Life
Saving money involves a level of sacrifice.
In simple terms, you can’t continue to live as you currently do. Cutting back on certain luxuries is the only way to save.
Refer back to your outgoings again. How much do you spend on car repayments, mobile phone plans, rent, and so on?
Could you survive in a smaller apartment, with a downgraded phone, and a basic vehicle? Whether you like the idea or not, the answer’s probably yes!
Simplifying your life in this way can save you huge sums of money each month.
5. Pay Off Your Credit Debts
We know, this is a post about saving money.
How can spending it help you save?!
Well, strange as it seems, paying off credit card debts is one of the best ways to save money.
Credit cards cripple your finances if you let them. Late fees and compounding interest can mean you get stuck in debt for years and repay substantially more than you borrowed.
Paying them off faster will save you large sums of money in the long run. There’s no easy way to do it. Start by paying down the debt on the card with the highest interest rate. Then, move onto the next highest, and so on.
The amount of money you have to play with each month will snowball as you do so.
6. Sell Your Possessions
Selling your things is often the quickest way of getting extra cash fast.
Looking to kick start your savings? Assemble all of the household and personal items that you no longer want or need.
Then, via the internet, garage sales, and asking friends and family, try and sell them.
You might be surprised- certain possessions can fetch a tidy sum if you find the right buyer. If you really need money in a hurry, then consider taking valuables to a pawn shop.
7. Apply for Bursaries, Financial Aid and Investment
This suggestion won’t apply to everyone.
However, some people will be able to apply to external sources for money. For instance, there may be non-profit organizations, or charities, who offer financial aid to people in need.
If you qualify for their requirements, you can apply for their support.
Similarly, let’s imagine you need to save money fast for a business idea you’ve had. Current savings may not constitute enough start-up capital. You may be able to get investment from external sources like Courtney Lanier Sarofim at Sima Capital.
With a quality pitch and a worthy investment opportunity, you can quickly access the capital you need.
Final Thoughts on How to Save Money Quickly
Americans all over the country are crippled by financial constraints.
It’s a truly challenging monetary time. And, with consumer debt at an all-time high, it can be hard to see a way out of the predicament.
With most people living paycheck to paycheck, the idea of actually saving money can feel farfetched. The notion of saving it swiftly can seem positively laughable!
Thankfully, though, it’s far from impossible. Hopefully, this post has provided some useful insight into how to save money quickly.
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