Ready to reach your money goals? Here are some tips to help you get started.
Putting cash aside is often easier said than done. Whether you’re looking to build an emergency fund or want cash for a future purchase, putting funds aside is something we know we should all do. Saving, in one way or another, is a money goal for many of us. Setting a money goal for yourself or your family is important for your financial wellbeing, but getting started and continuing on your journey can be overwhelming.
According to Zippia, “the average American has only $4,500 in savings. However, this doesn’t take into account the fact that 42% of Americans have less than $1,000 in savings, and 49% are unable to cover a $400 emergency expense if it were to happen today.”
With that being said, we want to help you improve your overall financial wellbeing. Here are some savings tips, advice, and maybe new perspectives to help you get started.
1. Small actions = big impact
Sometimes the smallest actions we make every day can have a large impact. For example, let’s say you’ve made it a goal to start making coffees at home instead of stopping at the local coffee shop every morning before work. This small goal is not only helping your budget, but it’s also helping you save some money. Some other ideas include limiting the number of times you eat out per week, spend time collecting a few coupons before going grocery shopping, or maybe purchasing secondhand furniture to furnish your new apartment.
2. Make it automatic
Now, it’s time to find a place to store your funds. Sure, a jar or piggy bank is a fine place to stash your cash at first, but opening a savings account is ideal. Within your new account, you can set recurring automatic transfers. This can be set up for the amount you’re collecting with each coffee you’re making at home or can be a determined amount from your paycheck each time you get paid.
3. The dreaded four-letter word: D-E-B-T
When thinking about savings tips, you might not consider how paying off debt can help you on your journey. The quicker you can get rid of debt, especially high interest debt, the more you'll save in the long run. The best part is that once it’s paid off, you can start putting that money into your account.
With some understanding of your goal and how you want to achieve it, you can alleviate some stress and even assist your financial wellbeing in the long term. In all, just know that saving is a mindset and a habit. Once you get into a routine, it’ll become second nature.
Still looking for some encouragement to save more? In addition to our savings tips above, our calculator offers some added incentive. A few extra dollars can make a really big difference and this calculator will show you the impact when you start to save more.