Updated: Jun 29
Saving money is something we all know we should do. Grandma and Mom probably taught you to save for a rainy day, but how many of us really do what we know we ought to do? Saving money becomes difficult unless you make it a habit,
so here are our tips to help you make that happen!
1. OPEN A SAVINGS ACCOUNT
Yeah, it does seem obvious, but many people don't have a savings account! Even better, open one that is not connected to your checking account or one that is even at a different bank. This keeps it from being the first thing you see when you go online to check your bank account or to pay bills. Out of sight, out of mind!
2. MAKE AN AUTOMATIC DEPOSIT EACH MONTH
Create a bill payment to yourself. If it happens automatically, the chances of you doing it increases exponentially! Lots of companies know this and it is the reason they set up autopay for the accounts that you set up with them these days. Often, we recommend setting this automatic deposit amount as a percentage of your total income. If you are not used to saving, start with 5% and then move up a percentage point every other month until you are saving 10-15% of your income.
You will find that this method will make it easy and painless.
3. A PIGGY BANK
Save your spare change! It adds up surprisingly quickly! If you rarely spend cash, you can save your virtual change by using an app like Qoins, which will round up your purchases and put the "change" wherever you designate - even paying down debt! This method is super easy but is also extremely effective.
4. LOOK AT YOUR ACTUAL COSTS
Take a hard look at things like your health insurance costs, your utilities, your entertainment costs, etc. It is common to find that you are simply spending more than you need to, and there may be more options available to you to decrease your expenses in a number of different areas.
5. STAY OUT OF STORES
I know, it is a crazy idea, but haven't you ever noticed how the minute you walk into a store, you suddenly find you "need" things you didn't know you did. Retailers are in the business to sell you things, but you should be in business to decide, in advance, what you need and what you don't. Window shopping only helps the retailer, not your savings account. Make lists, only go when you need to, and
don't get sucked into their advertising!
6. REVIEW YOUR INSURANCE COSTS
Your insurance costs can change dramatically each year, and it is incredibly beneficial to meet with your insurance professional annually in order to make your benefits cost-effective. At Lift Financial, we recommend meeting with your Financial Professional annually in order to have a comprehensive review of your finances. For example, health insurance policies change every open enrollment period. What was best for you last year might not be best for you this year. Similarly, homeowners and auto insurance requirements change dramatically over your lifetime. A review of your property insurance is critical to both make sure your coverage is adequate, but also to make sure that you aren't paying too much. Thirdly, life insurance costs can change yearly as well. Talk to your agent and let them look to see if they can help you save some of your hard-earned dollars. You may be able to get better coverage in all these areas by simply taking a look!
7. PAY OFF DEBT
When you have paid off credit card debt, and car or personal loans, put that pre-budgeted money from those payments into savings! This is an easy way to have your money grow and work for you rather than for the credit card companies!
There you have it! "7 Super Simple Ways to Save Money" for
your own future or for a rainy day!