Tips to Build Up Your Savings Accounts
For most people, saving money sounds almost utopical. The idea sounds nice but the execution seems far too complicated. The truth is, it doesn’t have to be. With a few simple steps in place, you can start building up your savings account.
How to Start Saving Money
Raise your hand if you’ve ever had a hard time saving money! Don’t feel discouraged. You’re not the only one. Many things happen in our lives that make it seem like we’ve never going to be able to save money. However, this is really just another habit that requires a little preparation and discipline. These tips can help you start saving money in no time.
Set up a Budget
Ok, so budgeting might not sound like the most exciting thing to do, but it is essential to be able to determine how much money you can actually save. So, first things first. You need to know where your money is going, you know, how much of your paycheck goes toward utility bills, housing, groceries, the whole nine yards. Then think: out of your expenses, is there anything you can cut out? That’s where the money is! Literally. The money you put toward those little things you think you might be able to live without, is now the money you can start saving up.
It’s the Little Victories That Count
No matter how small the amount you are able to save may seem, the truth is every single penny counts. Over time, it will build up. Of course, the more you save, the faster you’ll have a significant amount saved up but that doesn’t disqualify your effort, and you’re certainly not going to be “losing” that money. At the end of the day, even $5 dollars is better than no dollars at all.
Create an Automatic Savings Plan
Most people get their paycheck and start paying bills and taking care of their financial responsibilities. Don’t get this the wrong way. This is a good practice, but there is something missing. To make your savings plan work, you need to pay yourself first. Meaning that whatever amount you decide to save up, you should include in your list of things you cannot forget to pay, just like your phone or water bill. Otherwise, you’ll find a hundred and one other purposes for that money and your savings account will never see it.
This is where setting up automatic transfers or creating an automatic savings plan comes in handy. Just set it up online with your bank, and forget about it. The money you don’t see, you won’t miss.
Prioritize Your Purchases
If you truly want to save money with a goal in mind, like a family vacation or retirement, you have to make adjustments that align with that goal. Start questioning your purchases or assigning a priority to them. What is more important? A new set of golf balls or remodeling your office? A manicure or that vacation in Mexico you’ve been dreaming of? You don’t need to sacrifice things that you truly need, but do take time to think about whether you actually need those “extra” things or not.
The secret about saving is that there is no secret at all. With a little planning and a process in place, you can really build up your savings account and make it feel like second nature to you.