Here are some quick tips to help you start saving money so you can fulfill some — or all — of your financial dreams.
- Track your expenses and purchases to review your spending habits. If you want to be able to identify opportunities for how you can save more money, you’ve got to understand where exactly it’s going. You can track your expenses by simply writing them down in a notebook, creating a spreadsheet or trying different budget apps. Find what will work best for you and start tracking.
- Set a savings goal. It’s always good to establish a goal when it comes to your finances. Maybe you have a dream vacation in mind, or you want to buy a new car, or you just want to have a nice financial cushion for those unexpected life events. Establish a goal for your savings and make sure you include a realistic timeline for when you want to achieve it. Then get to work on making it happen.
- Every time you buy a treat, like a Starbucks or pop, transfer the same amount of money into your savings account. While you feel good enjoying your treat now, you can feel good later when you have a nice savings account established. If you don’t have a savings account, you can easily open one that will fit your short-term or long-term financial needs.
- Bring your lunch to work every day for a week. Eating out every day for lunch can add up quickly and not only be hard on your financial health but on your physical health, too. By taking your lunch every day for one week you will create a routine that can become easier to stick too. Take those extra funds you’d typically spend eating out and transfer them into your savings.
- Are you up for the $5 weekly challenge? This is the art of progressive saving. Put $5 into your savings week one. Deposit $10 into your savings on week 2. Deposit $15 into your savings on week 3. Deposit $20 in your savings week 4. Continue increasing the weekly savings by $5 increments for 52 weeks of the year and you will have $6,890. This can take some planning, but it can be a great way to have a good chunk of change in a year’s time.
- Set a limit for spending when it comes to special occasions. Make a list of what you’re going to buy that’s within your set budget and stick to it when you go to the stores or shop online. This will help you avoid putting those impulse buys in your cart.
- Transfer some of your paycheck directly into your savings account. Set up a direct deposit for funds to go directly to your savings account or set up an automatic transfer that happens around each payday. A little can go a long way over time.
- Declutter your subscriptions. This was a financial wellness tip we gave at the beginning of the year and it’s such a good one when it comes to helping save money. These days, we find we all have an abundance of services that we subscribe to monthly. Evaluate your list and determine which subscriptions you can live without and put those dollars into your savings account.
- Try a spending freeze. For a week or a month, don’t buy anything that isn’t a necessity and with the money you save during that time, put it into your savings account. You may find you can live without some of those nonessential items you’ve been purchasing.
- Try the envelope budgeting method. For a month determine how much money you want to spend each week for the “nice to have” expenses. Put that amount of money in an envelope and only use that cash for your extra expenses. Once that money is gone, you will know you can only purchase the necessities for the rest of the month.
- Take advantage of your employer match for 401k plans. First off, make sure you’re contributing to a 401k or a retirement savings account. If your employer offers one and will match your contribution up to a percentage, then at a minimum, you should try to contribute what your employer will match. While this type of savings isn’t something you’ll see until you retire, it could be a nice cushion later down the road.
- Reduce your energy costs. Look at where you have your thermostat set and consider adjusting it a few degrees. You can always use a fan to cool off a room or put on a sweatshirt or grab a blanket to stay warm. Turn off lights and appliances when they aren’t needed and switch out your light bulbs for energy-efficient ones. These small steps could help you save a little on those bills throughout the year.
Regardless of your age or financial situation, there is no time like the present to reduce spending and start saving more. Wherever you are in your financial journey, we’re here to help. Contact our team at Centris who can help get you started on your path to achieving your savings goals and making your financial dreams a reality.
