If I tell you to save more money right now, chances are all you’ll hear me say is “blah blah blah”. Don’t tell me that’s not true to make me feel better — I know it’s true :). I can’t really blame you! There are a million other things we can talk about that are more exciting than saving money, but today I’m gonna go ahead and stick to the boring topic. #SorryNotSorry
Before you kick me to the curb, hear me out please. I’m not going to tell you all the things you hear over and over again about saving money: “don’t eat out”, “stop going to Starbucks”, “save 30% of your income”, “lower your cable bill”, etc. While these things do have truth to them and can definitely be sound financial advice, today I want to share some tricks with you that will help you save more money without you even having to think about it.
Let’s get started!
Automate your savings
One of the easiest things you can do is set up an automatic transfer from your checking account to your savings account. It doesn’t have to be a large amount, but set something up to save some money without ever having to remember to do anything. Start with $100 a month and save an extra $1200 per year. After a few months, increase the amount if you can and you’ll quickly see your savings grow without you having to do anything else.
Out of sight, out of mind
No don’t hide your money under your mattress but do keep it somewhere else. By somewhere else, I mean open an account at a different bank than where you have your checking account at. By having it at a different institution, you don’t have to see it every time you log on to check in on your checking account. You’ll be far less tempted to use the money since you won’t be seeing it often. Obviously, log in periodically and make sure you have fraud alerts set up in case something fishy comes up. If you bank somewhere that offers low interest rates on savings accounts, definitely consider an online savings account. Not only will it accomplish the “out of sight, out of mind” thing, but it will also help you earn more.
Put a name on it
Have you ever noticed the option you have to name your accounts through your online banking? It can be very useful for your savings accounts. You can open different accounts for different purposes and title each of them. Some examples are: emergency fund, down payment for home, wedding fund, vacation fund, etc. By separating and naming these you’ll remember what you’re working towards and be less motivated to tap into those funds.
Let’s say you realize you’re paying for a subscription that you’re not getting any use out of. Of course you’re very wise with your money so you decide to cancel it. Great idea! That subscription was $20 per month. Now rather than just spend that money on something else, redirect it into your savings account. So if you’ve set up your automatic transfer by now, increase it by $20 and let that money build your savings even more.
Have fun with it
There are fun ways to save money. We have a fitness challenge going on at my office where you have to workout 4 times a week and if you don’t, you put $5 in an envelope on Monday. At the end we use that money for a team lunch. Try something like that on your own! (Except instead of using it on lunch, put it in your savings account at the end) It can help you stay on track with other goals as well as help boost your savings. Another easy thing to do is fill up a jar with spare change. It doesn’t seem like a big deal, but if you do it long enough it definitely adds up.
I hope you find some of these tricks useful! Saving money takes practice and a lot of different strategies. Don’t let it intimidate you — there are fun, easy, and simple ways to “trick” yourself into saving more. 😉
Nothing on this blog should be considered personal actionable advice, research, or an invitation to buy or sell any securities. Consider all risks before investing, including the loss of your hard earned money. Vee is an Investment Advisor for Warren Street Wealth Advisors, this blog reflects her personal views, and not that of Warren Street.