How to Save Money: Build Habits with These Savings Tips
We can all afford to put a little extra away each month for a rainy day or retirement. Saving money doesn’t have to be complicated and should become one of your top priorities. Here are some easy savings tricks to help you get started.
Pay Down Debt
Debt is one of the biggest obstacles to saving money, so work at paying down your debts first. One way to do this is to pay off your debts from smallest to largest, also called the snowball method. Once you’ve paid off those debts, then you can make progress towards your savings goals.
Wants vs. Needs
It also doesn’t pay to go into debt just because you “wanted” the newest phone or gadget on the market. If you don’t have the cash to pay for it, you might want to rethink that purchase. Another trick? When you’re grocery shopping or online shopping, instead of purchasing that item you want (i.e. ice cream, chips, shoes, magazines) – log in to your mobile banking app and transfer the money you “wanted” to spend from your checking to your savings account.
Take Advantage of Automation
Out of sight out of mind… One of the easiest and most effective ways to save is to automate the process. Take yourself out of the equation and set up your Savings Accounts, IRA’s, and Christmas Clubs to automatically be deducted from your paycheck or check account. You can do this in Online Banking under Transfers, just check the box to repeat and choose the frequency. Simple as that!
Name It to Save It
Think about what you’re saving for. Looking to put money away for a trip? Maybe you’re trying to save up for a new car? Give your savings accounts nicknames. Setting up a Vacation 2020 or New Vehicle savings account is easy. Seeing that name on your statement each month is a good reminder of what you’re putting that money away for and can help keep you motivated.
Track Your Spending and Create a Budget
Knowing where your money goes each month will help give you an idea of costs you can cut. Write it down on paper or download one of the many apps available to start tracking your spending. Then set a realistic budget for how you spend your money each month.
Cancel Subscriptions and Unsubscribe
We all have them, and maybe multiple of them. If you’re paying every month for things tv, music, gym memberships, or newly popular subscription boxes, evaluate what you are using and get rid of the ones you don’t use regularly. If you miss one, you can always subscribe again but save yourself some money in the meantime.
Another tip to save you money is to unsubscribe from emails. It’s easier to avoid that special coupon or sale if you don’t even know it’s available.
Make Lists for Shopping
It’s easy to stray when you don’t stick to a plan, something as simple as a grocery list. It can organize you for the whole week when you plan meals and keep you from runs through the drive through because you’re not prepared. Check sales and clip some coupons before you head to the store and only buy those items on your list to maximize savings as you shop.
Take Advantage of Rewards and Interest
If you’re not spending the money, you’ll start to see more money in your checking account each month. If you have an account like InterestPlus Checking or Carefree Interest Checking you could be earning interest on your balance. While credit cards may offer you points or rewards, you don’t have to acquire any debt to earn the interest on a checking account. Learn more about our interest bearing checking accounts here.
Don’t Blow Your Bonus
When you get a bonus or a raise it might be fun to celebrate but set that money aside. It was money you didn’t miss before. If you have any balances on loans or credit cards, put it towards that first, and once you’re debt free start putting it into your IRA or savings account.
Challenge Your Friends
Make a competition out of it. Pick a dollar amount to put away each week and hold each other accountable. This can make saving fun!
Refinance Your Mortgage
Depending on your interest rate, you may want to look at refinancing your mortgage. Lowering your rate can reduce your monthly mortgage payment, allowing you to put the additional savings away. If you reduce your payment you could also decide to continue paying the same amount you were before, which could shorten the length of your loan and save you additional interest. Also consider setting up bi-weekly payments. You’ll make an extra payment each year which will go towards the principle of your loan instead of interest. Contact one of our mortgage lenders today or check out our Mortgage Refinance Calculator to see if refinancing your mortgage makes sense for you.
Looking for additional savings tips you can use this summer? Check out our 10 Tips for Fun Summer Savings.
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