(Almost) Effortless Ways to Save
Keeping up with the Joneses.
We live in a society where we’re always trying to keep up with the Joneses, so it’s easy to get caught up looking for something bigger, better and faster. But, as financial security becomes less certain and more Americans live longer, we’re increasingly looking for ways to save money. Many people are changing their spending habits in an effort to become financially independent and you can too. Here are five ways to build your savings and plan for a brighter financial future with very little extra effort.
Start Saving Now
You can boost your savings by depositing money you earn or receive unexpectedly directly into your savings account. And, by depositing a percentage of each paycheck into your savings account, you’ll reduce the risk of spending that money impulsively and ensure it’s there for a rainy day. See if your employer is able to direct deposit some of your paycheck into your savings account set aside for just that…savings. If your employer doesn’t offer that option, each month transfer a certain amount from checking into savings.
Change Your Habits
Consider cutting unnecessary spending on luxury or impulse purchases. Try to avoid impulse buys by waiting at least 24 hours before buying something you think you want or need. By giving yourself this extra time, you are less likely to experience buyer’s remorse and more likely to add to your savings cushion. To put your spending in perspective, you can also divide the cost of an item you want (but don’t need) by your hourly wage. If you make $10 an hour, ask yourself whether a $50 pair of sunglasses is worth five hours of work.
Live Within Your Means
Prioritize long-term needs over short-term wants. If you decide to splurge on nonessential purchases, such as expensive shoes or morning lattes, consider depositing an equivalent amount of money into your savings account. If you can’t afford to match that amount, maybe you can’t afford those boat shoes or nonfat soy lattes.
Think Long Term
When you focus on your future and set specific goals, it can be easier to save. For example, you may want to pay down high-interest debt or save for retirement – both important reasons to make saving a priority today. It’s also important to beef up your emergency fund, which can help with unexpected expenses like a surprise home repair, job loss, sudden illness or accident.
Feel Safe and Secure
Once you establish your emergency fund, plan for short and long-term financial goals and start thinking about retirement, you’ll feel more secure when you think about your future. And, while long-term planning is important, you should also allow yourself to enjoy meeting short-term goals, like taking your family on a much-needed vacation.
With a Personal Savings Account, you can set up an account to hold your savings to help you achieve those financial dreams – big and small – even faster. Plus, by setting up automatic transfers from your checking to your savings account, you’ll keep those goals in sight.
All materials contained herein are for general informational purposes only and do not constitute tax or legal advice.