Does saving money come naturally to you? Or do you struggle with getting excited over seeing your bank account balance go up?
If you’re not a natural saver, don’t fret – there are still plenty of ways to make saving money effortless. Today, we’re going to show you how.
Saving money doesn’t have to feel like an uphill battle. It doesn’t have to feel like watching paint dry. It also doesn’t have to feel like a constant struggle between living in the present and planning for the future.
If you want saving money to come effortlessly, then make sure you follow these tips.
Automate Your Finances
Nothing works better than setting up automatic transfers from your checking account to your savings account. The less you have to think about it, the better, right?
If you haven’t, go ahead and commit to automating your savings right now. Seriously.
Most banks offer the option to set up automatic transfers online. You don’t need to fill out any paperwork to make it happen. It’s as easy as setting up automatic bill payments to your various service providers.
You won’t have to try and remind yourself you should be setting aside a portion of your paycheck. You won’t have to worry about your savings growing. It’ll all be happening in the background.
Hopefully you have an idea of how much money you can spare for your savings. It’s absolutely okay if you have to start small. Saving $5 a week will give you $260 over the course of a year.
Besides, we’re not terribly concerned with exactly how much you’ll be able to save. That might sound counterintuitive, but it’s true. What we’re focused on is actually building the habit of saving.
If you start living without that $5 a week, then maybe you can increase it to $10 a week down the road. By easing into saving and setting up automatic transfers, saving money will be a cinch for you in just a few months.
You can’t tell me that doesn’t sound better than going through every item on your budget trying to cut back.
Of course, the added benefit is the more you become comfortable with saving, the more you’ll accumulate. That $10 a week will turn into $520 by the end of the year, which sounds better than $260.
Is it easier for you to focus on percentages, rather than dollar amounts? Then try committing to saving 5% of your take-home pay each month. The recommended savings rate is 10% (or higher), but you can work your way up to it!
You can do this with your retirement contributions, too. Make sure you’re enrolled in automatic payroll deductions at work, if you have a retirement plan offered through your employer.
If not, you can still set up automatic transfers from your bank to any retirement account you have!
The process is painless and simple, and you’ll be able to reap the rewards of saving.
Focus on Earning Cash Back
If you can use credit cards responsibly, then earning reward points is an extremely easy way to save.
It’s fun when you check your rewards balance and realize you can redeem it for a nice chunk of change.
This works well if you’re a diligent saver. However, that cash back can look awfully tempting to use toward other things some days.
That’s why using Wherewithal to earn cash back is a great alternative. You can earn up to 30% cash back with some merchants, and that money is automatically earmarked for your savings goals.
We go a step further than rewards points, too. We invest your money for you, according to the financial goals you’ve selected.
Not only will you worry less about saving (since you can save while you shop!), you’ll be able to worry about saving for the long-haul and managing your investments.
If saving is difficult, investing might prove to be a bit of a challenge.
Take the obstacles out of the picture by letting us help.
Pay Yourself As You’d Pay a Bill
You may have heard of the phrase “pay yourself first.” It’s a simple concept that goes hand-in-hand with automating your savings.
If you have a penchant for spending until nothing is left over at the end of the month, pay yourself like you’d pay any other bill.
Say rent is due on the 1st of every month. Well, now you have to pay yourself when you pay the rent!
Do not leave saving until the end of the month. Declaring, “Whatever is left over after all my bills will go toward X, Y, and Z!” sounds great, but until you follow through on it, it’s not very useful. Chances are, during the month, you might find things to spend your money on, and you’ll be left with nothing.
You can pay yourself first by setting up those automatic transfers to coincide with your first paycheck of the month. Know where all your money is going – allocate it to your bills, to irregular expenses such as groceries and gas, and also allocate it toward saving.
The bottom line is you don’t want to leave your savings up to chance. There should be no question about it – you’re saving every month, with minimal effort.
Is saving money a challenge for you? What have you done to make it easier? Do you automate your finances?