Why is saving money so hard?
Maybe you’re like me and you like spending money to a degree where it becomes a bit unhealthy. Possibly because you need Starbucks daily, possibly because you like getting packages from Amazon. Whatever the reason, you always wonder why there are only $2.00 in your account between pay periods.
The reason it can be so hard is because you can’t visualize where it is going. Most of the transactions we have today are cashless, using credit cards, debit cards, your school ID, or even your phone. Some experts suggest that if you want to save money, spend cash. Having a physical object leave your possessions reinforces the fact you are spending.
But maybe you are like me and love chip cards and Apple Pay. So how can you save if you don’t like having cash? Well, here are my suggestions for saving money in a modern era.
1. Track your spending
Like I said previously, if you can see your money leave, it's easier to want to keep it. There are a couple ways you can track it.
The first method is a tried and true spreadsheet. Every transaction you have, write it down in a spreadsheet. Over a month you can see exactly how much money you seem to spend and can attempt to cut down costs. This can also help you budget for future months and may help you understand how much money you can actually put in savings.
The second method is the one I use: Mint. Mint is an app on your phone that connects to all your bank accounts. It reads your transactions, categorizes them, and even lets you set budgets for yourself for things like movies, food and drink, and leisure. It automates the process and saves time. The app even allows you to set notifications and get your credit score (you’re really going to feel like you’re adulting)! Again, by tracking your spending and budgeting yourself, you can see how much you are able to save each month.
Mint is available on iOS, Android, and Amazon devices
2. Save the Bits and Pieces
In my room I have a huge jar. Every day when I’m emptying my pockets I take my spare change and put it in this gigantic vessel. It may not seem like a lot of money, but those nickels and dimes add up. I used to do this with a mason jar which, when full, was over $40. Coinstar (the machines that will take that spare change located in many grocery stores) will even give you 100% of the value of your coins as gift cards, including an Amazon.
3. Invest
When I was younger, all I ever heard about investing was “buy low, sell high” and “the younger you are, the riskier you can be”. But no one ever taught me HOW to invest or WHY to invest. Eventually, I figured it out for myself.
Acorns is an app on your phone connects with your chosen debit and credit cards and allow you to invest the “change” from your transactions: if you spend $54.34, it will invest $0.86. It makes investing mindless and easy. The only fee is $1/month, but they allow college students to invest for free with a valid .edu email. You can make it more complex by having recurring investments as well as changing the way you would like to invest (conservative to high risk). To date, I have had a 4.31% return (keep in mind all experiences are different and past performance does not indicate future returns). It may seem daunting, but the app is very simple to use and the customer service is top notch! You can even get $5 invested just for signing up!
There are other apps that allow you to pick and choose your investments (Robin Hood and Loyal 3) and most have very small if any fees associated with them. Of course, there are other investment companies and I highly encourage researching which one is right for you.
These are just my suggestions, and personal finance is a huge topic to try to tackle in a simple article. If you have other tips and tricks you can comment down below. Hope this helps anyone out there get in control of their personal savings!
