Saving $1000 a month is a great goal to have. It’s not easy, but with determination, a budget and some changes to your spending habits, we’re confident you’ll be able to hit your savings goal. The most important place to start is understanding where you’re spending your money and figuring out where you can cut costs and make changes so you have more money to save. Check out our best tips on how to save $1,000 in a month.
How to Save $1,000 in a Month
1. Understand What You’re Spending On
You may think you have control of your spending habits, but have you actually sat down to look at what you’re spending on? Understanding how much money you spend, and on what, will give you a better handle on your finances and ultimately help you save more.
Do a monthly review of your income, expenses, spending and saving to give you a clear look at your financial habits. This will tell you if you’re spending too much in a certain area that may be keeping you from saving. For example, perhaps you notice you’re spending way too much on takeout and ordering in food. If it’s become a habitual part of your day, you may not even realize how much you’re spending on it. It’s time to make some changes.
2. Create a Budget
Once you have a better understanding of what you’re spending on, it’s time to create a budget. Write down your monthly take home pay as well as your essential expenses (rent, phone bill, debt, groceries, etc.) and see what you’re left with after that.
If you have a goal of saving $1000 in a month, take $1000 out from what you’re left with. Anything on top of that can go towards non-essential, treat yourself items like coffees and date nights.
3. Set Caps for Yourself
If you want to save more, it’s a good idea to set caps on how much you’re spending on non-essential items like entertainment, restaurants, shopping and homeware. This will help ensure you don’t overspend in these areas.
Once you’ve created your budget, this step will be easier because you know how much you have to work with in terms of non-essential spending money. Depending how much money you make, this may not allow you to buy non-essential items some months. This is where self restraint comes in handy.
4. Create Small Money Goals
Saving $1,000 in a month can seem like a daunting goal, so try to break it down for yourself. For a 30-day month, saving $1,000 means putting aside a little more than $33 a day.
Think about ways you can cut $33 out of your daily spending. This may mean packing a lunch instead of buying one, making coffee at home or skipping a night out to dinner with friends. Understanding ways to cut your daily spending can set you up for saving success.
5. Get Rid of Food Delivery Apps
These days, it’s way too easy to order food whenever you want. For many people, ordering food through delivery apps is a common daily occurrence and has become part of their regular routine.
If this sounds like you, you’re not alone, but you’re likely overspending on food delivery. If you feel like you rely on food delivery apps, delete them from your phone. Take away the convenience and get into the habit of making more homemade meals.
6. Plan Your Meals
Another way to save money on food is to plan out your meals in advance. Creating a capsule pantry and buying items in bulk ensures you always have your go-to foods on hand. It also makes grocery shopping a lot easier (and less frequent).
You won’t buy unnecessary groceries that you don’t end up using and you can also plan for how to use leftovers during the week. Meal planning will keep you away from fast food and takeout and help you save!
7. Make a List of Things You Want
Impulse buys feel great in the moment, but often lead to buyer’s remorse. To prevent this from happening, make a list of all the non-essential things you want to buy. This can be anything from a new purse to new activewear, new glassware, new boots or new makeup.
Whenever you see something you want, put it on the list. Come back to the list a month later, and see if it’s still something you really want. If not, take it off your list and forget about it. This is a great way to keep yourself from impulse buys and save more money.
8. Automate Your Savings
One of the best ways to ensure you’re saving a certain amount of money is to automate your savings through your bank. Moving your money out of your chequing account and into a savings account automatically takes a financial decision off your plate as you don’t even have to think about it. You can do this on a weekly, bi-weekly or monthly basis, and the amount or percentage you put into your savings is up to you.
9. Try a Budgeting App
You can also try using a budgeting app like Mint to help you manage your money. You can see all your accounts in one place, track your bill payments and budgeting goals, set up budget alerts, categorize your transactions, track your investments and more. They also offer resources on financial planning, investing, mortgage refinancing and career so you can learn tips on how to save more.
10. Cut Costs
It’s time to get real about what you really need and don’t need. Look at all the services and subscriptions you’re paying for and see which ones you can cut out. For example, do you have Netflix, Amazon Prime and Crave? Choose one to stick with and cut the other two.
If you have an in-person or online gym membership, consider getting rid of it and doing free online workouts- there are tons on Youtube! Decrease your data usage on your phone, cut your cable package down, and track your electrical and heating/cooling costs to see where you can trim down. All these things add up and cutting them out can help you hit your savings goal.
Try these tips to help you save more money and hit your $1,000 savings goal each month!
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