Saving Is As Easy As 1, 2, 3
Three easy ways to save money each month
February 23, 2015 by Mark Dye
There are very few people who would admit to not being interested in saving money. And yet very few people believe that they have adequate savings, of both the long- and short-term variety. The fact is, anyone can find ways to save money, no matter the size of their paycheck. All they have to do is follow three simple steps.
Step 1: Pay yourself first
It's best to put money aside before you even see it, whether it's in the Thrift Savings Plan via allotment, or to a standard savings account via direct deposit. It doesn't have to be a huge chunk of your paycheck, either—even putting aside $50 a paycheck can help offset or even cover future unexpected expenses. The best part is that, after a while, you won’t even know the money is gone.
Step 2: Find extra money
Your savings won't amount to much if you just keep on spending at the same rate, so find those things you spend money on but can do without. It could be not eating out for lunch every day (an estimated $700 a year), quitting smoking (you’ll be healthier and could save up to $2,400 or more each year), or changing that weekly dinner out into a monthly occasion (possibly saving you up to $1,000 a year).
While all of those figures are just estimates, the fact is that each of us has these type of little expenses hiding in our spending that we might not even realize are there. But when you find them and start to put that money aside, it really can make a difference and help your savings grow a lot faster.
Step 3: Stick with it.
While these changes might not make you into a millionaire overnight, they will add up over time. Having that longer-term outlook is the key to a successful savings strategy—it is over time that your savings plan really starts to shine and make an impact on your overall financial health. Also, just think of how good it would be to pay for those car repairs outright, rather than having to finance them or put them on a credit card!
Saving money really is this simple. In fact, the toughest part might simply be changing your mindset. So make saving money, rather than spending it, your top priority and you just might have plenty of it around when you really need it.