Five Effective Savings Strategies To Try Out Today
Having effective savings strategies is key to your financial health. If you are operating on a tight budget, you probably don’t feel like you have any extra money to put aside for savings. Yes, money will be tight, but you need to think about your future needs as opposed to your current wants. This is the only way you will have a strong financial future. Without this, you could set yourself on a path to financial issues that could lead to credit repair, debt and bankruptcy.
Here are five effective savings strategies that will help you reach your financial goals faster
Making saving automatic
When you get paid, your first thought is usually not how much money from your paycheck you can put into savings. On of the most effective savings strategies is to automate your savings. Pay yourself first by coming up with a percentage of your paycheck that will go directly into a savings account. You won’t miss what is not there.
Banks like Wells Fargo offer their Way2Save program which rounds up every purchase to the nearest dollar. If you use your debit card for most of your purchases, this can add up to a decent amount. Just make sure you are not tempted to access the money!
Make it a family affair
If you have a family, it is vital that you get everyone on board with your new financial plan. Start off by holding a meeting with the family to discuss what your goals are and how each person can contribute. Together, try and come up with ways each person can help conserve. Some effective savings strategies like turning off lights or helping to prepare home cooked meals can really help move the dial on your savings goals.
If you have young kids, it is very important that you get them in on this. It is never too early to start teaching your kids financial literacy. By the time they are ready to leave the nest, they will be ready to navigate their own finances with confidence.
Don’t spend money for 30 days
Give yourself a challenge to not spend any money for 30 days. This is a fun challenge and a very effective savings strategy. It will also help in creating good financial habits along the way. As you move through this challenge, you may find that all the things you usually spend money on are really not needed. Like the $5 Starbucks latte, that lunch out or even a night out on the town. All of these things we think we need to be doing to enjoy our life can also be done at home for a fraction of the cost.
Save your loose change
This might be one of our favorite effective savings strategies. If you use cash a lot, you no doubt have change in your pocket at the end of the day. Get a jar and deposit your coins into it everyday. After a bit of time, that change will really add up. When it is full, take it to the bank and open a savings account for it. Continue to do this and overtime you will definitely have a nice chunk of money saved.
Give minimalism a shot
Minimalism does not mean you need to move to a remote town and live off the land. It simply means doing away with the “things” in your life that are not necessary or bringing you joy. You want things in your life that matter most to you. This can look like cutting out cable, having less electronics, growing your own veggies or purging your closet. There are so many ways to live more simply and minimally. As you strip your life to include just the things that matter, you will have more free time for the things you enjoy. Not to mention you will wind up saving money too!