Have you had trouble saving money or are having trouble saving money currently? If so, this blog post may be for you.
Here are 5 tips to begin a great savings pattern:
1. Start small.
Whether you are able to save $5 or $500 per week or pay period, just start. Do not cheat yourself out of a healthy savings plan.
2. Be consistent.
Whatever Whichever frequency you chose choose, remember to be consistent. Do it every single week, pay period, or month,. whatever you Decide what works best for you.
3. Pay yourself first.
Paying yourself first is one of the most important tips, and it will help with consistency. To avoid the temptation of spending, pay into your savings just like a bill. Deposit into your savings immediately after receiving your paycheck. That way you can avoid the temptation of spending.
Automatic deduction is my favorite tool for saving. This tool also helps with paying yourself first. Set up an automatic deduction from your paycheck to be deposited directly into your savings account. If your savings and checking accounts are held at the same bank, you can have an amount deducted from your checking into your savings at an appointed time of the month.
5. Out of sight, out of mind.
If you have trouble saving money or find yourself withdrawing from your savings account often, having your checking and savings accounts at different financial institutions is recommended. Open a savings account at a bank located in another area of town. Additionally, do not link your debit card to your savings account and do not set up online banking. The goal is to automate your savings and forget you have it. Over time, you will be surprised how much you accumulated (if you do not touch it).
Simplicity is recommended. To remove withdrawal temptations, put saving on autopilot. Put it away, make it inaccessible, and forget about it.
If you think you may need additional assistance with saving, please feel free to contact us. One of our coaches will be more than happy to walk through this process with you. Call us for a free consultation.