Everyone would like to be saving money but finding extra money after each month’s expenses can seem impossible. Setting aside money for an emergency fund, to pay off debt, or to take that vacation you have been dreaming about does not have to be a huge challenge. For National Saving Day, we have 5 tips to start saving money.
Mindset – Saving money starts with the way you think about saving. Remember, saving does not mean you are giving up on the things you want, it means you are prioritizing some financial goals over others. Keep in mind the reason you decided to start saving. It could be for added security for you and your family, to treat yourself to that vacation you have been dreaming of, or to finish paying off that credit card debt. It may help to create little reminders for yourself.
Start Small – Saving does not have to start with a set percentage of your paycheck. It can start with little actions throughout your day.
- Use paper money instead of debit or credit cards. It is easier to keep track of your spending when you must take the money out of your wallet or purse than it is to just swipe a card.
- Deposit the money from your change jar into savings. Next time you take your change into one of our locations, ask for the money to be added to your savings account. You’ll be surprised how quickly the money starts to add up.
- Reduce Impulse Purchases. Take small steps to make impulse purchases more difficult for yourself. You could:
- Make a rule that you will not go to the store without a written list of what you need.
- Do not save your payment methods at your favorite online stores. If you force yourself to enter your shipping address and credit card information each time.
- Wait two days before making a major purchase. Taking the extra time to mull over the decision can help prevent buyer’s remorse and limit spending.
Check on Your Subscriptions – Take twenty minutes to look through your credit and debit card statements for any unwanted subscription services. Finding any services that you thought you canceled or didn’t realize were set to auto-renew can result in surprise monthly saving.
Refinance Your Mortgage – Interest rates are exceptionally low right now. Refinancing your mortgage to lock in a lower interest rate, switch to a fixed rate, or to remove FHA insurance can result in significant monthly savings. Think refinancing may be right for you? Give us a call or stop in at any of our locations and our loan officers will be happy to go over your specific options in detail.
Set Two Savings Goals – Remind yourself why you are saving. Do you need a new car? Time to start a college fund? Saving is easier when you are saving for something specific. Next, set a specific goal. Start with something small; “save $50 towards the emergency fund each month” or “pay off my credit card debt faster.” Remember; little steps add up.