Even though most of us know we should be saving more than we are, we still find it difficult to do. There are some steps you can take to make it easier to stick to your saving goals. Here are six ways to save more.
1. Get a Second Bank
Instead of keeping all of your funds in one place, open a savings account at a different bank then the one that has your checking account. You probably consistently monitor your normal bank account and keeping your savings in a different place should help you save. Not being reminded of what you’re missing could make this easier on you. Also, transferring money from separate banks is more difficult which may tempt you less.
2. Automate It
Automatically transfer a portion of each paycheck into your savings account. If you already do, increase the amount you transfer by a percent or two. You may not even notice the difference and you will be saving more. This method of saving directly from your paycheck makes it easier to forget you ever had that money. If your employer does not offer direct deposit, set up your own automatic transfer into your savings on a weekly, bi-weekly, or monthly basis. The sooner the money is moved, the easier it will be to not spend it.
3. Put the Difference From Discounts Into Savings
Setting aside some time to plan your meals, look through weekly ads and snip some coupons can save you a large percentage of your grocery bill. If you are unsure how to or where to start, do a little research, find a workshop, or subscribe to blogs to help you get started or become better at saving from your purchases. Once you start saving, deposit the amount you saved into your savings account. Most stores have the amount you saved on the bottom of the receipt. Using mobile banking to transfer that amount at the end of your shopping trip will help you not spend that money.
4. Pretend You Never Got That Raise
Every time you receive a rise, trying not to inflate your expenses. Continuing to live off of the previous salary and setting aside the extra money can be a painless way to save. You can increase the percentage going into your 401(k) or if you are maxed out, start saving in a Roth or Traditional IRA.
5. Harness the Power of Spare Change
Saving up your loose change may sound petty but can lead to significant savings. Having a coin jar could also be a good reminder to save. At the end of each day, put whatever change you have in the jar. At the end of every month or year, deposit it all in your savings account. It makes sense to take advantage of the extra money lying around to reach your saving goals.
6. Get Cash Back and Save It
If you are a credit card user, save the rewards you get back from it. Unless you pay off your balance in full each month, your rewards may be negated by interest. If you are able to pay off your monthly balance, looking for a card that offers cash back on purchases you make the most could help you save a lot over time.
Try these saving strategies and contact a Wealth Advisor at iWealth Global Management for additional help. You can reach us at 813-321-1572 or by email at firstname.lastname@example.org.
Source: Jackson, Nancy M. "6 Simple Ways to Save More." Yahoo Finance. N.p., 12 Aug. 2014. Web.