5 Ways to Get Into the Habit of Saving
The new year is a time for reflection and looking at where we want to take our lives in the coming months. You might be thinking about resolutions like “lose weight” or “spend more time with family,” but what about saving money? Saving money is just as important as any other resolution because it has the power to transform your life in many different ways.
Discover the benefits of saving and how to get into the habit of saving
Saving money can be difficult, but it is an essential habit of life. Saving money will help you to pay off debt, invest for the future, avoid scams, and simply have more money for retirement. The first step of getting into the habit of saving is to identify what you are saving for. Once you have your goal in mind, make a plan around how much you can save each month and set up automatic deposits.
Saving is all about discipline – without it, you won’t be able to stick with good habits like avoiding debt or spending less.
Pay off costly debts first
The most expensive loans are often the highest priority to pay off. This means paying off credit cards, car loans, and other types of high-interest debt first. It will take a little longer to pay off these larger debts at first, but it will save you money later.
How to automate savings using a service like Acorn
Saving is hard and it can be tempting to put it off. That’s why Acorn is such a useful service. It saves the money you put in and then invests it for you, automatically. All you have to do is set up an account and link your bank account to the service.
Setting up alerts and reminders through your phone or email
Setting up alerts and reminders through your phone or email is a great way to get into the habit of saving. You can set up alerts with one click on your phone, which will keep reminding you to save money. Setting up a recurring transaction in your bank account is also a good option for those who prefer a more hands-off approach.
Plan ahead for expenses with a budget planner
Creating a budget planner is the first step into developing a savings habit. A budget planner includes a list of your income and expenses for a set period of time, such as one month. It also includes a template for you to track how much money you spend in each category. At the end of each month, you’ll know what your total income is and how much you’re spending.
The power of small amounts
The key to saving money is getting into the habit of doing it. That means setting up a system that will force you to save money every day without fail. One way to do this is by automatically transferring $2 from your checking account to your savings account each time you use an ATM. This way, it doesn’t matter how much cash you withdraw, you’ll still have $2 in savings afterwards. Many people use this”chipping-away” strategy, which means saving small amounts of money and being persistent about it.
Once you’re in the habit of saving, you’ll feel much better about your finances because it will seem easy to begin building up a cushion for emergencies that come up.
