Building a savings account does not have to be painful. Starting a savings fun can be simple.
Check out these simple solutions that can help you start saving today.
Stick to a budget
If you don’t have a budget, make a budget and strive to put at least 10% into savings each month. If you can’t afford starting a huge savings account, then start small. Placing change in a jar each day is better than having nothing. Just start by keeping track of your income and expenses, putting anything extra into savings and watch it grow.
Set up an auto-transfer
We have a set amount of money automatically deducted from our checking account and placed into saving on the day Bill gets paid. I never have to think about it. It’s like magic, watching the savings account grow.
Change your deductions
Many people neglect to change the number of deductions at their place of employment when they add a child to the family. Buy raising the number of deductions, the amount of tax withheld from your check will decrease. This will give you less of a refund but you can place the money into a savings account and be making interest off the extra instead of granting the government a tax-free loan.
Save quarters or $5 bills
I have a friend who will never spend a $5 bill. Instead, she will stuff it in a sock. At the end of the year, this is her Christmas shopping money. Choose a denomination and anytime you are given change which includes a quarter or a dollar or a $5 bill, add it to your savings fund.
Stop buying what you don’t need
Do you have a surplus of clothes, shoes, purses? For me, it’s tote bags. Put yourself on restriction and stop buying those items. Put the money you save into your account.
Even better… sell those extra items and put the money into a college savings fund.
Round it up
Some banks offer programs that allow you to round your purchases up to the next dollar and the difference is placed into your savings account.
Even if your bank does not have this option, you can still practice it at home. Just keep a running total of the rounded-up amount and transfer it to savings at the end of the month.
Avoid adding new debt
Spending is tempting but saving is a great reward when you don’t have to panic when something unexpected happens.
Cut up those credit card applications, or better yet, OPT OUT by calling the phone number on the application. The easiest way to avoid a tempting situation is to stop those offers before they are even addressed to you.
Maintain your standard of living despite a raise
Even if you get a raise, do not immediately add on a service to your cell phone plan or put some other expense into your budget. Instead tuck that money into your savings account.
Maintain your current standard of living, making it your goal to live off only 80% of your monthly income.
More ways to manage your family finances:
- 5 Reasons to Refinance Your Mortgage
- Free Family Finance Binder Printables
- 5 Unique Ways To Pay Off Debt You Haven’t Thought Of Before
- 6 Reasons You Can’t Afford to Delay College Savings
- Tips for Reducing Your Grocery Budget (Part One)
- 5 Myths about Bankruptcy and the Truth from Someone who Survived Chapter 13
I recently read on a blog that there are some people who save bills with certain letters in their serial number. Thought it was a pretty fun idea. Makes savings like a treasure hunt.
That’s a really unique idea and would be an especially good idea for children. Thank you. 🙂