There’s much more to ‘saving money’ than simply ‘spending less’. It’s about figuring out a way to consistently put away money for the long term. It sounds simple but can be very challenging if you don’t have a plan.
First, know your budget: what’s your monthly income less expenses – the necessary expenses. The difference will help you determine how much you can save every month.
But don’t get too ambitious and save the entire amount left over. The danger is that you won’t be able to stick to the plan and give up. Instead, small steps will take you a long way… half of what’s left over is a great start.
Next, you will increase your motivation to save, if you know that your savings are working for you. Invest your savings as early, often, and as much as you can and watch your nest egg grow.
Acorns makes it simple.