Saving can help you achieve any of your financial goals. Whether it is a down payment on your dream home, a comfortable retirement or a fabulous vacation, saving can surely get you where you want to go. The great part about saving, it helps to keep you from going deeply into debt. Most Americans spend more than what they earn, save little to nothing, and are deeply in debt. Consider the fact that the national savings average has dipped to it’s lowest point since the Great Depression. If there has ever been a time to save, that time is now. With a little effort and forethought, saving is not only possible, but it is also easy. What are you waiting for? Let’s start saving.
1. Make saving a priority
Saving is another category that should be on your budget. I suggest monthly savings goals as well as a yearly saving goal. First, figure out what you would like to save for–a house, car, retirement, college or a dream vacation– and how much it will cost. Then make your plan.
- Set a timeframe for when you would like to reach your goal.
- Set a schedule by dividing the total goal amount by the number of weeks, months or pay periods between now and your goal date.
- Be consistent by treating your savings contribution just like any other must-pay expense, such as rent or groceries.
2. Find money to save
I know that it may seem hard to make ends meet sometimes, chances are you have extra money that you didn’t know about. Here’s how to find it
- Keep track of everything that you spend. You would be surprised at what you’re buy and what you could do without.
- Make purchases with cash. This helps you stick to a budget and avoid impulse and frivolous spending. Decide ahead of time how much you want to spend and then set aside that amount, in cash, before you go shopping.
- Try lowering your bills. Many creditors will give borrowers a lower interest rate if they’re asked. Also, conserving electricity and gas can make a big difference.
- Rank your nonessential spending. Keep the ones you like best and ditch the rest.
- Take a lunch to work instead of eating out, and cook more dinners at home. Eating out can take up tons of money that you could be saving instead
Always pay yourself
In the book, The Richest Man In Babylon, by George Samuel Clason, he states that a part of all you earn is yours to keep. We are so inclined to pay our bills first and save ourselves for last, if there is anything left. After I pay my tithes and offerings, I make sure that I put a set amount in my savings account. It is of the utmost importance that you begin the habit of saving at least 10% of your paycheck each pay period. I save 10% of my gross. Once you have made a contribution to your financial longevity, then you can divide and pay everything else. I’m sure that there will be plenty left over to cover everything you need. One thing that makes it easy for me to save is having my savings portion directly deposited in my savings account. As my grandmother used to say, “Out of sight out of mind, put that money in your savings account and don’t touch it unless you need it.” Those words are a part of my DNA. Make saving a part of your DNA.