Savings. We all want lots of money in savings but its not so easy to actually save the money. In fact, it’s quite difficult. There is a reason why so many Americans are living paycheck to paycheck. I get it. I am a low earner myself, and I have been unemployed. I don’t have too much money saved but I do try to make it a priority.
3 Tips to Boost your Savings- but be warned! There are no shortcuts! Click To Tweet These are not quick or easy. In fact, there is no really quick and easy way to save money. It takes hard work and discipline. There are no short-cuts. Trust me, I have scoured the web to look for them and asked many, many people. Anyone who says that there is, is either lying to you or trying to sell something.
That being said… what can you do to boost your savings and your savings rate?
- In order to save money you have to set systems in place. When you are following a set of rules that you make for yourself it is easier to make sure that you save. So I recommend having a specific amount of money that is set aside each month- this can be wither a dollar amount or a percentage of your paycheck, ex 20%. This amount gets taken from your paycheck immediately! If you get paid by check or direct deposit- the minute the money hits your account you transfer it to your savings account. Many accounts allow you to do automatic deposits so you can set those up to withdraw money from your checking account and into your savings account the day you get paid. If you get paid in cash, immediately separate the savings portion and place it aside. Don’t go shopping before having the savings portion in a separate envelope that you won’t spend. Tell yourself that it is not your money. It belongs to your savings account- not to you.
- Dream! Your state of mind is very important when it comes to saving. If you feel like you are depriving yourself in order to save then you are more likely to keep spending the money instead of saving. If you allow yourself to dream and imagine what opportunities your savings will allow you later in life you will have an easier time putting that money away. Think, write down, discuss what financial security can do to your life. This will help you feel like you are working towards something as opposed to just denying yourself something today.
- Celebrate small goals! Set small achievable goals for saving and then celebrate when you reach them. You can make a visual aid to help you stay on track and celebrate those small successes! Visual aids are great because you can really SEE what you are doing. You can color, have a physical jar or chart etc. Many online bank accounts have visual trackers as well that can really help you picture your goal. Pinterest and Instagram have some great examples of visual aids that people way more creative than me have come up with!
I put $5 a month into my retirement account. Why, you ask? To create good financial habits!