Nobody can dispute that saving more money is a good thing. It’s also a goal many people have. Saving money is good for our financial futures and it’s good for our stress levels. Having a “rainy day” fund on top of emergency savings, retirement accounts, and maybe even other investment accounts eases the burdens of financial stress.
We’ve compiled a list of a few simple ways to save more money. In fact, some of these need only be set up once and saving is on autopilot!
Put a Percentage of Your Salary Directly Into Savings
Don’t wait until the end of the month to see what is left over from your paycheck. Put a percentage of your salary directly into savings as soon as you’re paid. This ensures that you’re saving money, and you’ll also know exactly how much you will save by the end of the year.
You can even set this savings up on autopilot. If your employer offers direct deposit, see if you can have a specific amount of your check deposited directly into savings while the remainder goes into your checking account. If that’s not an option, check with your bank to see if they offer a service that would automatically transfer a portion of your paycheck into savings.
Maximize Employer Matched Retirement Funds
If your employer offers 401(k) or 403(b) matching, take full advantage of it! This is basically free money. Make at least the minimum contribution your employer matches. For example, if your employer matches 3%, make sure you’re contributing 3% to take full advantage of this employment benefit.
Spend Less – And Actually Save The Money You Didn’t Spend
When you take the time to evaluate your expenses and find places to spend less, have a plan to move the money you didn’t spend into savings. Perhaps you can increase the percentage you save from your paycheck right off the bat.
Spending less doesn’t mean foregoing the luxuries you love. Click here for Simple Ways to Spend Less.
Make Saving A Priority
It’s true that the things we get done are the things that we prioritize. If you want to save more, it is critical that you make saving a priority. Not only do you need a plan to save more, you need to prioritize it and commit to it. Sometimes the simple act of giving a goal your attention infuses the goal with energy all its own. This makes it far more likely that your goal will be met.
Save Your Money Where It Counts
Hold your money in interest bearing accounts. This allows your money to earn interest – which is earning money on your money. Interest-bearing savings accounts don’t typically have high interest rates, so shop around for an option that will yield a higher return. CD’s typically offer higher interest rates, but also tie your money up for a prescribed timeframe. Money Market accounts also offer more favorable interest rates than regular savings accounts, but keep your money liquid.
Research the interest rates on savings accounts offered by the banks and local credit unions. Also, research other FDIC insured financial institutions. You may find that your credit card company, or other organization, offers higher-yield savings accounts, while still offering the safety of being FDIC insured.
Does this really matter? Well, if you go from 1% annual interest to 2% on $50,000 in savings, your money will go from earning $500 in interest to $1,000 without you having to do a thing. Now that’s a simple way to save more money!
The Law Offices of Barbara B. Braziel helps people get out of debt. We offer free consultations to people of Savannah, GA and the surrounding areas, including Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City.
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