Happy to learn how to save money each month, a guest post “By Josh Wilson”, a Millennial working to save more money each month is here to tell us how. Josh loves to side hustle and as well as to save. Saving might be Josh’s middle name. No, not really. Our guest blogger Josh Wilson blogs over at Family Faith Finance and today he will talking to us about how to save (or Make) an extra $500 per month.
For many people, the hardest thing about saving money is simply getting started. It’s difficult, at first, to figure out how to save money and pursue realistic financial goals. This guide is here to help you develop those money-saving habits to get started right away and start adding money to your savings account each and every month.
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The first step to learning how to save money each month, is to figure out exactly how much you spend each month, and this means tracking your many expenses. This could mean simply looking at your bank statement to see your debit or credit card purchases, but make sure to also include gas, groceries, and coffee habits, along with mortgages, and other large amounts.
Then, make a budget and work to organize your expenses into that budget. It should outline your expenses, your income, and your future goals. Overspending is a real possibility without a budget, so it’s best to really examine your budget, especially when considering those things that don’t occur each month, like seasonal bills.
Scheduling Automatic Savings
Once you’ve developed your budget and got a better grip on spending habits, it’s time to automate a savings account. If your income automatically goes into your savings account, there’s no way to spend it before you manually put it into savings. This can happen by automating a direct deposit from your employer, or setting up your checking account to do send money to your savings account on payday. This is a great feature especially if you want to save money each month
Outside of your current system, there are also options such as a CD, or certificate of deposit. This savings tool will often offer a higher rate than most standard savings accounts, plus there’s not the risk involved from buying stocks. CDs do not typically have fees involved, but they are recommended for those who can let them sit.
According to NerdWallet, the average rate on a CD for three-years at the bank currently sits around 0.50 percent, while online banks may offer rates higher than 1 percent. Options include variable-rate CDs, low/no-penalty CDs, callable CDs, jumbo CDs, and IRA CDs.
Some real-life examples of higher CD rates may include Synchrony with a 5 year term and minimum balance of $25,000 at 2.35 percent; Barclays with a 5 year term and minimum balance of $1 at 2.35 percent; or Ally with a 5 year term and a minimum balance of $1 at 2.25 percent, according to new reports.
Making an Extra $500 Per Month
If you’ve taken some time to calculate your budget and an extra $500 doesn’t look like it’s in the cards, and you can’t cut any other expenses like subscription services, then it’s time to consider making some extra money each month as a freelancer. This a great to add extra income in order to help you save money each month.
One way to make some extra money, say an extra $500 a month, would be to create a profile on one of the online freelance websites like UpWork. Anyone interested in making money as a writer, graphic designer, accountant, translator, programmer, developer, salesperson, marketer, or virtual assistant can do so online.
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On UpWork, there are always over 100,000 jobs listed in the categories mentioned above. If you wanted to be a freelance writer, for example, you can create a profile for free and then start looking for jobs. It’s actually possible to find writer jobs that pay around $30 an hour, which means an extra four hours of work each week could be another $500 in your savings account. This is an amazing way to up and save money each month.
Some freelancers work full-time, while others work part-time, as listed above. A part-time freelancer might work an hour or two each morning, on their lunch break, the weekend, or in the evenings. This could include writing articles, short fiction, copywriting, or an array of other high-paying jobs.
Things like computer programming, legal work, graphic design, and certain sales jobs even pay as much as $150 an hour online. The key is to create a niche online, but there are also classes online that teach you how to make money online as a freelancer so you can start saving, or making, extra money each month.
Choosing Something to Save For
In the end, to find the motivation to cut back on the expensive coffees or work extra hours as a freelancer, it’s important to choose something to save for. Short-term goals may include emergency funds, down payments, or even fun things like a vacation or wedding. What will you be saving for?
Long-term savings goal will include things like retirement, a child’s education, and a down payment on a new home. Either way, whatever you decide to be your reason why, stick with it and focus on your daily, weekly, or monthly savings goals. When you know your reason why, you can better understand your priorities when it comes to saving more money each month.
Are you ready to save money each month?
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