Ugh savings. This word makes most people cringe. Because usually you have to give up something to save money and that is so uncomfortable!! I feel your pain. I was once very comfortable. I was living at home with more money than I actually needed and was a saving machine! One day I got this bright idea to move out. I didn't have to I just wanted a change. I wanted to be more independent. So I got all my savings together and started to implement "Plan Leave The Nest." Well a year later between a sudden job change and a move to a large EXPENSIVE metro area my savings are hurting!! I saved up for a rainy day and it poured and with it my savings poured out too. All of a sudden saving money wasn't as easy because I had to continue to furnish my house and do all the things you do when you move. On top of my moving expenses, my windshield cracked and had to be replaced, my car needed an unexpected repair oh and did I mention I moved to one of the most expensive areas in the whole country? Money was just flying out. I was like hold up! I need to get a better handle on things. On my journey I have discovered many ways to efficiently save money. Whether you are starting your emergency fund, planning for retirement, or saving for a family get-a-way here are some pointers to help you stash some cash.
1. GET RID OF THE EXCUSES!! I have heard it all. But the most popular choice is "I don't make enough money to save" Really? So you don' t think you could save $1? Even $1 week would give you $52 a year. $52 over 5 years is $260. Some people would say that is not a lot of money but saving is saving. No amount is too small. Generally people do what they really want to do. If people didn't have the money to save, where did all of this disposable income come from in the economy? Starbucks is not a necessity ( I know some people are like "Have you seen me without coffee in the morning?") I am just saying if you have to have coffee, find a cheaper alternative and save the rest. 99.5% of the time, there is always room improvement which leads to more saving.
2. Use offered bank products. I know at my bank, they offer an account called Way-2-Save. This product is a savings account that deposits a dollar into the account each time you use your debit card as a credit card on a connected checking account. If you are like me and never carry cash, those savings add up! A good thing to remember is that everything you are buying is costing a $1 more so make sure you factor that in when balancing your check account to avoid over draft fees. Research products at your financial institution to assist with saving money.
3. Beware of Fees! Late fees, overdraft fees, transaction fees....fees fees fees!! Fees are a killer to getting on track to save money. Make sure you understand all the fees associated with your accounts to make sure you are saving money the best way possible. For example, most banks offer bill pay. It sounds like a great idea. You just set it and forget it. Until the bank starts charging you a fee. To avoid this fee, you can do automatic bill pay thru the actual vendor. Companies usually do this for free because companies want their money on time.
4. Set up automatic transfers or direct deposits. This is my ultimate favorite way to save money. I have direct deposits going directly to a savings account from my paycheck. I don't have a chance to think about whether I am going to save or not because it comes out automatically. You can also set up transfers from your checking account to transfer a set amount every week, pay period, or once a month into a separate savings account or accounts. You can also set up transfers to go into different accounts for different uses. You can set up an account for car repairs, vacation money, taxes, college or anything you want to prepare for in the future. The savings goals are endless!
5. Set a goal. Don't start saving without a goal. If you are saving for an emergency fund, know how much you want to save up. Is it one month of income, $1000, or six months of income or maybe a whole year? Set a goal even if it is just $50 and when you get there CELEBRATE (but don't spend it)!! Then set another goal and go for it.
6. Be realistic. Do not set unrealistic goals. If you do, you're going to get discouraged and fall off the wagon. It's kind of like when you start a diet. If your goal is to lose 10 lbs in a week you are either going to almost die of undernourishment or you will not get there. Which in both cases you may become discouraged. The goal is not to beat everyone else in saving but to start a habit of discipline.
7. DON'T TOUCH IT!! Savings aren't savings unless you save them. Save the money and do not touch it unless you absolutely have to. A new pair of shoes does not constitute an emergency. Neither does a new video game, unless that is the goal you are saving for.