The phrase “money can’t buy you happiness” isn’t necessarily true: according to a Harvard Business School study, increased finances can reduce stress, provide greater control over negative thoughts and events, and bring higher life satisfaction. A financial boost doesn’t happen overnight, but there are a few steps that can be taken to help decrease spending while simultaneously adding a little extra money to your bank account. 

  1. Stay Organized: Keeping track of your funds is the foundation for good financial health. Tracking your income and expenses helps you monitor how much money you are spending versus how much is coming in and can help you reach your savings goals. Decide what your major or long-term goals are, like purchasing a new car, as well as short-term goals, like creating an emergency fund, then try different saving and budgeting methods that work best for your lifestyle. Once your funds and goals are organized, you’ll be able to see how much money you have leftover to create the life you want. Getting greater control in the area of “I have a plan” will help you change some of those negative thoughts to positive ones.
  2. Eliminate Additional Expenses: There are many ways to cut daily costs, whether it has to do with changing your food routine, reviewing subscriptions or memberships, or finding ways to save while shopping. Here are a few tips on how to eliminate unnecessary expenses:
    • Instead of eating out, cook at home. Cooking at home not only saves you money, but it’s also healthier than eating out. Shop around different grocery stores to find the best deals on items you need, or purchase items in bulk from warehouse stores so that you can stretch your groceries. Stick to a list, which will help you stay on track and budget. This small change will greatly help your bottom line.
    • Some retailers and grocery stores offer price matching. Additionally, don’t hesitate to purchase generic store brand versions of items, as these items are likely the same exact product with the same ingredients, just with the store’s label.
    • Take a subscription detox. Review subscriptions and memberships you are no longer using and close those accounts to eliminate monthly fees.
    • Set weekly or monthly budget amounts for groceries, entertainment, and eating out to hold you accountable and make sure you are not overspending.  
  3. Enjoy Free Activities: Take advantage of local no-cost activities or offers and put that extra cash into your savings account! You can easily find free activities in your area by doing a quick search online or on social media. If you’re a reader, visit your local library to rent books, or you can rent eBooks or audio books for free through a library-affiliated mobile app! If you’re interested in improving your physical fitness but don’t want to pay for a gym membership, opt for walking or running around your neighborhood or searching for free workouts on YouTube. 

Proper money management techniques help eliminate financial stress, put money back in your bank account, and get you closer to achieving financial freedom. Your plan may not make a huge impact overnight, but if you stick with it your savings will add up  over time.  The closer you are to financial freedom, the happier you will be!  

Visit our Financial Knowledge Blog to learn more tips on setting up a solid financial future or join us for free Financial Wellness Wednesdays webinars.