Ready to grow your savings? Use these tips to save money consistently throughout the year and reach your savings goals.
Making a conscious effort to remind yourself that saving money is important can be difficult. Sometimes it’s put off until a specific time such, as once the holidays roll around, right before a vacation, or there’s something specific you want to buy.
Here are some ideas on how to prioritize saving so you can plan for these things and more.
Name Your Savings
Labeling an account with a specific goal you’re trying to reach may make you feel more motivated to save. It can also be used as a powerful tool to deter yourself from withdrawing money from this account.
For example, naming an account ‘Vacation to Italy’ is a reminder of what you’re saving for each time you see your account and the account balance.
Divert Extra Money
When you cancel a subscription or receive a discount on something, continue to budget the same amount for the item and transfer the extra money directly into your savings.
Additionally, any bonuses, refunds, or windfalls you receive can be a great boost for your savings account.
This tip is simple – set up an automatic transfer from your checking account to your savings account. Even if you’re starting with a small amount at first, you’re still saving money.
If you set up the transfer when you get your paycheck, you likely won’t miss that money because you won’t see it and you’ll create a beneficial savings situation.
Hide Your Savings
Having an out of sight, out of mind approach can drastically help your savings goals. Set up a separate account that you won’t regularly see but can still transfer money into. Not seeing your balance daily will curb the need to spend it and allow you to grow your funds.
Open A Certificate
While this approach may not work for tight budgets, it’s one that yields a greater return. Putting your money in a share certificate locks in your money and provides a barrier for early withdrawal, restricting your temptation to take out funds. Certificates also yield a higher dividend rate, so you’ll get more bang for your buck.