Having a cushion of money set aside not only gives you financial security but also peace of mind. However, accumulating such savings can often feel like a strenuous climb. Personal finance author and influencer Rachel Cruze, known for her expertise in money management, recently shared some effective strategies on her YouTube channel about how to save $4,000 quickly.
The first strategy shared is the setting and tracking of a budget. Keeping track of your finances lets you know where each penny is spent. Every expense should be accounted for, from utilities and groceries to transportation costs. An important inclusion in the budget should be savings, to ensure a certain sum is added to it each month. Inspecting expenditure patterns can also unearth potential prospects for cost-cutting. For instance, significant monthly spending on leisure activities like dining out and entertainment can be curtailed to boost savings.
Some expenses might seem little things but become a part of your regular spending pattern. It’s important to pay attention and be mindful about such costs. This increased consciousness about your expenses can further help in tracing and eliminating unnecessary expenditures.
Cruze’s next suggestion is to have a ‘No-Buy Month’. An online trend popularized earlier this year, it involves committing to not purchase any non-essential items for a certain period. This duration can range from as short as one month up to a year. The strategy is about becoming aware of our spending habits and living within our means. Taking a step back from frivolous spending could help in distinguishing between items that are necessary and those that aren’t.
Simultaneously, the extra money you get by restricting your purchases can be stowed away in your savings. Even after this ‘No-Buy’ period ends, this practice can help you develop good spending habits that prevent unnecessary expenditures.
The third strategy Cruze recommends is starting a side hustle. A side hustle can be any work that you do outside your main job to earn an additional income. This adds to your earnings, thus providing more opportunities to save. Popular side hustles include activities like food delivery, affiliate marketing, ride-sharing, online tutoring, virtual assistance, and filling out online surveys among others.
An example presented by Cruze explains how a 10-hour workweek as a ride-share driver at a rate of $20 an hour can fetch an extra $800 monthly. That would amount to a whopping $4,000 after just five months.
Checking your subscriptions is another method that can help you save money. It’s easy to lose track of the several subscriptions that you’re paying for, so it’s crucial to review all of them and gauge their value for you. If you find any subscriptions that are not adding value to your life or are no longer in use, consider discontinuing them.
Furthermore, Cruze also emphasizes the significance of meal prep. Food, being the third-largest expenditure for US households after housing and transportation, can become a potential area to cut down costs. Strategic meal planning using affordable ingredients can lower your food bills immensely.
By deciding on a weekly menu and purchasing only the necessary items from the grocery store, you can easily dodge the temptation of ordering prepared foods or dining out at restaurants. This practice can lead to significant savings in the long run.
If you apply these strategies suggested by Cruze, you will not only save more but will also develop financial discipline and a better understanding of where your money goes. So start today and watch your bank account steadily rise to that $4,000 mark and beyond.
