Saving money doesn’t have to be so hard. Like any habit, saving money just takes some practice. Once you get used to consistently putting money away, its possible to save enough cash for emergencies, retirement, and other goals you’re hoping to reach. Here are 4 savings tips you can use to boost your savings and transform your financial life.
1. Automate Your Savings
One of the easiest ways to meet your short and long-term goals is to make saving money something that happens automatically. Set up direct deposit so that a portion of every paycheck automatically goes into a savings account. If you haven’t signed up for a 401(k) or another sponsored plan, change that so that you’re making contributions and saving for retirement every time you get paid. Don’t have a retirement plan at work? Open a traditional or Roth IRA.
If you’re looking for other ways to automate your savings, try using an app like Acorns or Digit that save money for you so that you don’t have to think about it. Or use a cash-back credit card or rewards checking account that lets you save money every time you spend.
2. Turn Saving Money Into a Lifestyle
Thinking like a saver is all about making purchases and being more conscious of how you’re using your money. People who think like savers take the following steps:
- Make lists before you go shopping – this helps keep you from buying things you don’t really need
- Avoid impulse buying – try to wait at least 24 hours between seeing something you want and actually buying it
- Avoid charging too many items to credit cards – if the money isn’t already in your account to spend, be more hesitant to spend it
- Avoid payday lending traps – these are often very high interest loans that can lead to more financial trouble down the road
3. Budget and Track Your Spending
Keeping track of what’s going in and out of your bank account is easier than ever, thanks to the countless number of financial apps that have been created. Develop a spending plan and come up with a method that will help you keep tabs on how you’re using your hard-earned money. A simple change, like making your own coffee instead of buying it could lead to other cost cutting measures, like bringing your lunch to work or taking public transportation instead of driving.
4. Adjust Your Tax Withholdings
Getting a big tax refund every year isn’t necessarily a good thing. Depending on your situation, you could be paying the IRS more than you should be. You should take another look at your W-4 to see if you’re claiming the right number of allowances. If you’re not claiming the right number of allowances, you’re essentially letting Uncle Sam borrow money from you without paying interest. Make changes to your tax form so that you have extra money to save throughout the year.
Earn More on the Money You Save at Patriot Federal Credit Union
Our Continuous Saver Certificate offers the flexibility to make regular deposits, similar to a savings account, while earning a high interest rate throughout the term. Check our our range of other savings solutions from Savings and Money Market Accounts to Christmas and Vacation Club Accounts to Share Certificates and Individual Retirement Accounts (IRAs).
Patriot’s mission is “People Helping People – Not for Profit, Not for Charity, But for Service.” Stop by one of our branches in Chambersburg, PA, Waynesboro, PA, or Hagerstown, MD, today to open a new savings account and see for yourself.