Saving money is something we all aspire to do. But some do it much better than others. The key? Automation! Here are several time-tested ways to simplify your savings goals and stick with your plan.
- Have money automatically taken out of each paycheck and transferred to a savings or retirement account. Also known as paying yourself first, this method of savings is perhaps the most tried-and-true. Paying yourself first ensures that you will never run into the excuse of not having enough money left over to save.
- Another method that has become popular over the past decade is the rounding up method. Certain banks have programs where you can enroll to round up each debit card purchase to the next even dollar. The extra amount rounded up is automatically deposited into a savings account.
- You can always rely on the old-fashioned method of saving your change as well. If you spend cash for your purchases, putting leftover change in a jar is a simple, pain-free way of stashing away savings. To turbo-charge this method, try putting single bills away as well.
- While saving your loose change is helpful, try spending more with cash than with plastic. It is proven that those who shop with cash spend less than those who use debit or credit cards. The net result? More unspent money that can be transferred to your savings account!
- If you are hesitant to shop with cash and using plastic is important to you, use a card that comes with cash back rewards or equivalent. These rewards are “money in your pocket” that you can set aside for future expenses.
- Finally, simple math says that shopping sales and discounts will leave more money to save. Use this simple trick: take the amount of money you saved on a purchase (often savings will be shown on your receipt) and deposit it into a savings account.
These are just a few ways to save. There are countless others as well that work for a variety of different people. The bottom line, though, is to spend less than you make. There are several ways to do this, but the math still works the same.