Saving money often feels like pinching pennies. Sometimes, it can feel like it’s not worth it. However, setting money aside for emergencies and creating a “cushion” for yourself will make it all worth it in the end. Here are a few ways to save money that leaves a little room for extra spending money:
Do the math: Don’t put money aside in savings if you can’t afford it. Oversaving can actually damage your more than save you in the long run. Calculate exactly how much you need for your expenses. Save as much as you can, but make sure to leave some spending money for yourself.
Set money aside for play: If you spend all of your hard earned cash on expenses and then save everything left over, you’ll end up pulling from your savings. Yes, it does sound counterintuitive, but realistically, we all want things for ourselves. It’s a good thing to be able to buy material things here and there. It makes our day to day jobs worth it! Saving a few bucks for entertainment/shopping/dinner etc. will keep your hands out of your savings.
Have a plan: If you’re in a pinch, make sure you have a back up plan. Knowing what to do when you have expenses that you can’t afford will keep you from depleting your savings- especially if your emergency savings fund is low. Places like Your Loan Depot is a great option for getting cash quickly.
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