Oftentimes, the hardest part about saving money can be just getting started! At Jarbucks, we believe that we can get you going in the right direction with these 7 simple tips.
Record your expenses. Putting pen to paper naturally puts your spending habits front and center. Use this time to see where your expenses are coming from and whether these are needs or “nice to haves”.
Budget for savings. Using your recorded expenses, you can now start putting together a monthly budget. You should try to line up your expenses to your monthly income, so you can more accurately track your spending habits.
Cut spending. If your expense report shows that you are spending much more than you’re earning, it’s time to think about ways to cut back. Are you spending $50.00 weekly on coffee? Try buying your own coffee beans and making your favorite cup of Joe at home, saving you an extra $45.00 per week (or $180.00 per month)!
Set savings goals. Start with a goal! Are you saving for a wedding? A vacation? Or saving for retirement? Having a goal will motivate you to actively save.
Determine your priorities. After you’ve calculated your expenses and how they line up to your income, your goals are likely to have the biggest impact on how you prioritize your savings. Be sure to separate your goals out both short and long term goals – saving for retirement is different from saving for a new smartphone or vacation.
Pick the right tools. Whether your goals are long term or short, picking the right type of account for your savings is key. Does a regular savings account fit your needs? Or should you be looking into an IRA for your long term savings? These are important questions to ask yourself when looking for the right tools in your toolbelt.
Make saving automatic. With most banks, you can transfer money from your checking to your savings automatically. Even more so, you can split your direct deposit so a portion of every paycheck goes directly into your savings account — this is a fast and painless way to save in the long run.
Every month, take the time to review your budget to make sure you’re still on track. When you turn these tips into good saving habits, you can sit back and watch your money grow!
Sources:
Bank of America – Better Money Habits. “8 Simple Ways To Save Money” https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/ways-to-save-money
