More On Saving
Rainy days, retirement, emergencies and more require savings. One of the cornerstones of personal finance is learning how to save money, but there’s much more to it than just a piggy bank. Frugality, understanding how to use sales and day-to-day life can all be a part of your long term savings plan for the best financial you. Here are some top tips to help get your savings started.
A Little More Frequently Goes A Long Way
It’s easy to get trapped spending an extra few dollars here or $10 there, but it could seriously cost you. The younger you are the more time you have to allow your money to grow.
Try putting away a few dollars a day and see how much you can save in a year – $2 saved each day for a year can net you $730 plus interest if you put it in a high-yield savings account!
Start By Saving For Emergencies
Most people live by the “$1,000 for emergencies” rule – it’s a great start! Save for your emergency fund and then push past that. Try to have 1 month of expenses after that, then aim for 3 months!
Automate Your Savings
You can easily fall into the trap of having leftovers in your budget or your checking account and end up spending it. Set up automatic transfers to your savings account for the dates your direct deposit hits. Out of sight, out of mind!
Pay Yourself First
With the ever growing list of things you need to pay each month, finding your savings money in your budget can be tough. Put yourself first – make it a point to give future you some cash before you pay out your bills.
Make It Fun
Saving can be challenging. Spending less on takeout, coffee and time with friends is a drag, but finding creative ways to save on nights out, commuting, or groceries – how many meals can you make out of $100? – makes it easier.
Figure out your weekly expenses, don’t forget to factor in rent and utilities, and challenge yourself to spend $25 dollars less. Or go a step further and commit to a no spend month!
Don’t forget to reward yourself when you hit big milestones – this way current you and future you both win.