It can be tough to save money when you're busy with work, hobbies, family and friends.
While we all want to put away as much as possible to invest in the next Afterpay Touch Group Ltd (ASX: APT), it can be hard to know where to start.
So, here's a quick guide on how to save more cash to increase your share portfolio in 2020.
3 easy ways to save money today
When it comes to personal finance, I find it's best to keep it as simple as possible.
With that in mind, here are 3 quick changes that will boost your savings and reduce your stress at the same time!
1. Make a budget
This is the key to any personal finance plan that you'll make. It's impossible to save more if you don't know what you are actually spending your money on.
The trick with budgeting is to make it realistic. We can all say that we'll just spend $50 per week, but if we actually need $400 to live on, our budget is basically worthless.
An easy starting point is to look through your recent bank statements and work out just where your money is going, then stick to your planned expenditure next month.
2. Save money and pay yourself weekly
This is a hugely successful tip and one that I underestimate every time. People often blame the fact that they are paid monthly as a big barrier to their savings.
The truth is that its easier to save money when you just pay yourself weekly and reduce the temptation to splurge on payday.
With shorter timeframes, you can focus on spending less and investing more in the likes of Appen Ltd (ASX: APX) at a cheaper price in November.
3. Don't stress yourself out counting pennies
The worst thing you can do is become obsessive about every last cent. While it's good to track your spending and save more money, you have to consider your health as well.
Stress is a non-financial cost to yourself and should be part of your overall calculation in your financial situation. If you're saving $5 every week but staying up late worrying, it's probably not worth it.
Trust your system, invest your hard-earned cash on the ASX then sit back and enjoy the capital gains!
