Finding extra money to put aside could be a struggle if you haven’t started yet. But having a savings account for when life throws you a curveball will give you peace of mind.
A healthy savings account is possible with some motivation and by following these tips. First, you want to go over your budget and make any necessary updates. Track your income, expenses, and determine a goal that makes sense. There are apps that can help you get on the right path.
- Mint. This popular app is an all-in-one finance app. From investing, budgeting, credit score, to handy calculators, this is an excellent choice for those that want to get their finances in order.
- Goodbudget. This app is based on the envelope budgeting method to help you save and pay off debt.
- Zesta. This budgeting app is designed specifically for couples and families.
- You need a budget. This app boasts that it will teach you how to budget, manage and save money.
Once your budget and goals are in place, the next step is to find out where you could be spending more than you should. Let’s explore some areas where you may throw away money that could go to your savings instead.
Cable costs are growing each year, so there are several other options available at much lower prices when it comes to enjoying your favorite channels.
If you already have your paycheck set up for a direct deposit, you can easily have your financial institution automatically transfer a specified amount to savings each pay period. When you don’t “see” the money, it makes it much easier not only to be consistent in building your savings but also keeps you focused on what money is available. This “set it and forget it” tactic could be just what you need.
Sell Items You No Longer Use
We all have things that are lying around the house that we may not use or never used at all. You can have a yard sale, post it on Facebook Marketplace, or check around some local consignment shops. It may take some time to get everything out the door, but it will be worth it. Each time you make a profit, you will be motivated to keep going until all the clutter is gone and your savings account is bigger.
Stop Eating Out
Small expenses add up quickly and a simple change can help you start saving quickly. According to the Bureau of Labor Statistics, the average American household spends approximately $3,000 a year dining out. You may think you don’t spend that much, but if you spend just $10 multiple times a week, every week, then you may be spending $200 monthly. Commit not to buy coffee or drinks while you are out, and if you currently dine out multiple times a week, try cutting back to once a week eventually scaling down to twice a month.
Do the 52-Week Challenge
The 52-Week Challenge suggests that you put money each week into your savings account. The amount you add should match the week of the year.
For example, in Week 1, you put $1 into your savings, Week 2 you put $2, and so on.
You could also choose to do the challenge in reverse. You’d put $52 into your account during Week 1, then deposit smaller amounts as the year goes on.
Once your savings account is built up to meet your goal or a number you are comfortable with, keep going and consider investing.
What are your favorite ways to build up your savings?
Looking for tips to declutter and find items that you could make some money off of? Check out this blog.