For many people, money is a source of stress.
Fortunately, there is hope... Here are seven simple tips to develop good saving habits that are essential to help you take control of your financial future.
1. Pay yourself first
Determine a certain percentage of your paycheck and transfer it into your savings account each payday. You earned the money - keep some of it!
2. Save your tax refund and any work bonuses
It’s tempting to spend your tax refund or bonus as soon as it reaches your bank account; however, if you can, save it in a high-yield savings account so that it can accumulate interest and grow.
3. Cut back on your home expenses
From transitioning to a less-expensive cable television package or mobile phone plan to reducing your monthly grocery bill, there are lots of ways to cut home spending. If you’re not sure where to make cuts, create a list of your discretionary spending, including meals out, gourmet coffee, new clothes, entertianment, etc. Little things like making your own coffee or shopping at outlets can add up to big savings.
4. Set a savings goal
Whether you wish to save enough to cover three months’ expenses or for a down payment on a new home, it’s helpful to have a number in mind that can be broken down into smaller, more manageable increments. Keep motivated by signing up to receive emails from your bank with your account balances.
5. Turn saving into a game
If you and your significant other or friend need competitive motivation to save money, create a game to see who can save the most each paycheck or each month.
6. Put extra cash or change into a jar
Instead of letting change accrue at the bottom of your purse, on the kitchen counter or in your pockets, toss it into a large jar. Although it may seem insignificant, you may be surprised by how much you can save.
7. Make saving a habit
Set up a reminder on your phone or place a sticky note on your calendar to remind you to save money. While it may take a month or two of focus and constant reminders to remember to save, it can become a habit that will pay off for years to come.