Welcome to my 52 Ways to Save $100 a Month series. We’re serious about saving money in 2016. Sometimes it’s the little things and sometimes it’s the big things. I’m here to walk you through some little things that can add up to BIG savings. 52 little things to be exact. Every week, join me back here for another small money saving tip or idea that might not seem like significant savings until you see the overall yearly savings. It might just blow your mind. So pop in each Tuesday and read a new tip that will help you on your way to save $100 a month!
This one is so obvious you might be wondering why we’ve included it. Of course you have to have some sort of a budget to work from, but did you know that 2/3rds of all Americans don’t work off a budget. What? That seems crazy to me, but we do tend to be a live in the moment society. For me personally, I spend about 25% less when I work off a budget. That equates to big savings. Here are some budgeting tips I’ve found helpful.
Go Digital: There are so many great {and free!} budgeting software tools right at your finger tips these days. Mint.com is a great one. It will take a bit to get all your goals, expenses, etc. loaded, but once they’re there, it does all the tracking and monitoring for you. Mint.com is also my favorite free budgeting app. I can see exactly what I have in all of my accounts in real-time right on my phone. If you run your accounts down to the last penny each month, this app will help prevent you from those nasty overdraft fees because you can see your big-picture budget. It also tracks all of your budgets from month to month and alerts you if you are about to go over in any given category or if your spending habits have changed.
50/30/20: This budget system is so simple and one of the best I’ve seen. It focuses on the 3 Fs: Fixed Bills, Flexible Spending, Financial Security. The theory is that you budget in the following 3 ways by spending up to the set percentage but never over:
- 50% Fixed Bills: These are your mortgage and car payments, your power bills and even your gym memberships, etc. They are bills that are recurring every month. You know they are coming so you can plan for them. This category should not exceed 50% of your take-home pay.
- 30% Flexible Spending: These are your day-to-day expenses that are different every month, like eating out, clothes shopping, movies, travel, entertaining, or gas. Because this category is more fluid, it’s especially important not to have it exceed 30% of your take-home pay.
- 20% Financial Security: This encompasses more than just saving for retirement or putting money away for a rainy day. This category should also include paying down credit card debt, paying back student loans, or building an emergency fund.
I’ve always liked this budgeting method because of the 3 main categories. Sometimes budgeting is crazy with a million different categories. This simplifies it in a way that makes sense to me. It might not work for you, but it seems like a pretty good guideline.
Read a Book: There are so many great budgeting books out there, and a bunch of them are even free to read on your device. Budgeting – Save Money, Invest For Retirement and Get Debt Free
So there you have just a few budgeting tips. Do you do a monthly budget? What system do you use?
How Much Can You Save: 25%+ of your overall budget. This adds up to hundreds of dollars each year for my family personally. When I started budgeting just for food, we saved thousands, yes, THOUSANDS each year. Budgets totally matter!
More Ways to Save:
52 Ways to Save $100 a Month | Clean Out Your Closet {Week 1 of 52}
52 Ways to Save $100 a Month | Break Up with Cable {Week 2 of 52}
52 Ways to Save $100 a Month | Barter Better {Week 3 of 52}
52 Ways to Save $100 a Month | Change Your Own Oil {Week 4 of 52}
52 Ways to Save $100 a Month | Adjust Your Thermostat {Week 5 of 52}
52 Ways to Save $100 a Month | Take Advantage of Your Perks {Week 6 of 52}
52 Ways to Save $100 a Month | Pack Your Lunch {Week 7 of 52}
52 Ways to Save $100 a Month | Make It Yourself {Week 8 of 52}
52 Ways to Save $100 a Month | Preserve Your Bounty {Week 9 of 52}
52 Ways to Save $100 a Month | Keep the Change {Week 10 of 52}
52 Ways to Save $100 a Month | The Art of Borrowing {Week 11 of 52}
52 Ways to Save $100 a Month | Ditch the Gym {Week 12 of 52}
52 Ways to Save $100 a Month | Clip a Coupon {Week 13 of 52}
52 Ways to Save $100 a Month | Start Your Garden From Seed {Week 14 of 52}
52 Ways to Save $100 a Month | Learn to Cut Hair {Week 15 of 52}
52 Ways to Save $100 a Month | Become a 1 Car Family {Week 16 of 52}
52 Ways to Save $100 a Month | Make a Phone Call {Week 17 of 52}
52 Ways to Save $100 a Month | Shop Christmas in July {Week 18 of 52}
52 Ways to Save $100 a Month | Grow a Garden {Week 19 of 52}
52 Ways to Save $100 a Month | Just Say No {Week 20 of 52}
52 Ways to Save $100 a Month | Go Generic {Week 21 of 52}
lynne says
Greetings Mavis :-). Yes, we work from a budget using the Dave Ramsey approach. It has helped TREMENDOUSLY in bringing our spending under control. We do his envelope system, and our last 2 vehicles were paid for with cash – that was an awesome feeling. The only debt we have is our house payment, which like you, we are adding extra principle payments to each month. If we do use a credit card (mainly on-line purchases & travel), it is paid in full when we get the statement. It was eye opening to see how much $$ was actually being spent on who knows what. Now we KNOW what we are spending it on. Peace! Thanks for your blog, and the awesome advice you give, and for pictures of the Puggle Princess! LynneinMN
Angie says
So what category includes regular food (groceries). I didn’t see that listed in the 50/30/20 plan.
Mel in Westchester says
I have never heard that 50/30/20 idea, and I like it. I’m trying to get focused on this. I went so far as to write out all my expenses, and take my credit cards out of my wallet but not so far as putting the cash in envelopes for specific categories. Baby steps!!!