Saving your money is one of the most important thing that you can do with your life and yet, the process can be more than a little overwhelming. Actually knowing how much to save and when to save it is the biggest question about the whole process and with very little guidance out there, you can feel like you’re on your own. It’s time to take back control. You are the boss of your own finances and by applying a little careful thinking to the process, you can save a great deal more, a whole lot more easily. It’s time to get your planner out; we’re going to get saving.
- Be Realistic About Your Goals
While your end goal might be to save as much money as possible, you’re going to have to be a little more specific if you really want to capitalize on your finances. Take a look at your goals for the future and set them into short, medium or long term categories. Next, take a look at the most urgent goals on your lists and set them above all else. Things like debt repayments and retirement packages might not seem interesting but they will help you out more in the long term, so give these top billing. Approaching your financial goals like a project will help you to be much more rational about the process and soon, saving will become second nature.
- Create Rewards Along The Way
Saving without incentive is a very tricky thing to do and along your financial journey, you might want to set yourself celebratory milestones in order to keep going. If you are able to save the amount you set out for three or four months in a row, for example, you can set aside a little extra money during the next month to go out with friends. Don’t forget to factor these small milestones into your overall budget, however. Giving back to yourself should make you feel good, but you don’t want to interfere with the hard work that you’ve already put in.
- Automate Your Savings
Want to make things really easy for yourself? Let technology do the thinking for you. Setting up direct payments from your checking account into your savings means that you will automatically save a little money each month without evening having to think about it. If you want to be really sure that your savings will be left untouched, try moving the funds to a separate bank account with a different company. Having to access a different account will give you time to think twice about spending the extra money, making it easier for you to save along the way.
- Maximize Your Savings
Once you have built up enough of a cushion in your savings, you can start using them to earn interest back on what you already have. Opening a High-Yield Savings Account or a Certificate of Deposit can maximize on what you already have and help to strengthen your savings for the future. To find out what works best for you, try making an appointment with your local bank and talking to a professional. You might be surprised at just how many options you have!