Saving money is essential in every individual’s life. It provides a safety net if an emergency takes place. Not to also mention the added effects of peace of mind.
Savings doesn’t just have to be for emergencies either. You could be saving up for big expenses like a trip, house, or wedding. Or even saving to be able to afford that gift for your loved one. Practicing saving your money helps keep you in control.
So why is it that Americans aren’t saving their money? Why would you want to be unprepared when those tires give out? Resorting to loans and credit cards to help bail you out. Reducing your net-worth further into the negative.
Many experts advise to save anywhere from three to six months of your monthly expenses. For instance, if your living expenses amount to $2500 a month, then you ideally should save up anywhere from $7500 to $15000.
That sounds like a lot, maybe even seems impossible or far out of reach. That is where you are wrong! Here are 4 steps to help you start achieving your savings goal!
1. Automatic Payments To Your Savings Account
First things first If you don’t have one already, open a savings account. If your employer allows direct deposits into the accounts of your choosing, then this is something that you will want to take advantage of.
Choose a percentage that works best for you and have that portion of your check automatically go straight into that savings account. This is a sure way to force yourself to save money.
That money is not there to you, you do not see that money, it is out of sight out of mind. It is a one-way street!
I wouldn’t even pay close attention to it at first, forget about it almost. Check on it in a few months and I’ll bet you’ll be smiling. This is something that I personally do and know that it works.
Learn to live off everything that you are not saving. There will come a time where you will reach your goal. Your savings is on autopilot at this point.
It’s possible to develop a healthy addiction to saving your money! You don’t need a lot to start but consistency is key and having it deposited automatically accomplishes that task.
2. Saving Cash In Envelopes
Putting away cash in envelopes is a good way to help you reach your saving goal. This is another method that I have personally tried.
Each time that you get paid take out a set amount in cash and put it in a labeled envelope of whatever you are saving for. Once you put your money in, place the envelope in a safe, at the bottom of your dresser drawer, or some location that is out of sight and not the easiest to get to.
Continuously do this each time you get paid and over a period of time you will be able to use that money towards what you were saving for. I usually tend to use this method of saving for my personal smaller savings goals such as money for trips or clothing.
But it’s a versatile method and it should work for you. Remember to stay disciplined and keep consistent.
3. Visualize And Do The Math
Do the math, its simple! Be intentional with your savings goal. Figure out what that amount is and see how fast you can get there. Make it make sense for your situation.
If it seems like it will take too long either increase how much you allocate from your paycheck or get creative and find ways to make additional money. Any extra money that you get should go towards getting you closer to achieving your goal.
Remind yourself of your saving goal each day to keep yourself accountable, this is a form of manifestation. You will accomplish it as long as you keep working towards it. If you encounter trouble keeping track of it, check out our budget that will help you out.
Don’t complicate it, saving should be easy and fun. Try out these tips today to help you crush your saving goal!