Money Saving Tips to Help You Meet Your Savings Goals
You can find tips for saving money just about everywhere you look these days. That’s good! The trouble is even when you take steps to save money, at the end of the month you can’t figure out where that extra money went. If you need to save money for a particular goal but are having trouble, follow these tips.
Goals, Goals, Goals
To save money, it helps to have a goal. Following small money-saving tips day in and day out adds up. But, if you don’t have a goal or something you’re striving for, you’ll soon find yourself getting discouraged. You’ll feel that there is no end in sight when it comes to saving and either become depressed and discouraged or throw your hands up in the air and say, “I quit!”
Choosing a Goal
Your first step toward meeting your goals is to know what your goal is. Why do you want to save money? When you aim for a particular target, you need to know what that target is. Decide exactly what your goal is.
First or new home?
Remodeling your home ?
Items for your home?
Now that you know the reason you need to save, you need to decide how much.
Deciding on the Goal Amount
How much is realistic when it comes to savings? Of course, that depends on your level of income and your current expenses. But, a good rule of thumb is to set aside 10% each week. If 10% is too much at first, start with 8% or even 5%. Do whatever you can, just do it.
Set both short-term and long-term goals. Setting a goal one or more months into the future is just too long. Decide on an amount to save each week. Be specific setting both dollar amounts and dates. Keep your goals posted where you see them every day.
Out of Sight, Out of Mind
Set up a separate account for saving money. If you keep the money you’re saving in the same checking account you use for everyday expenses, before you know it, you swallow up your savings. Most of the time, you won’t even know where it went. By having a separate account, you tend to forget the money is there and it’s a way of telling yourself the money is off limits.
Methods of Saving
The best and possibly the easiest way to save is to have your employer automatically deposit a certain amount in your savings account each week. This works well because you never see the money and don’t miss it.
Another good rule to follow is to commit to savings any ‘extra’ money you receive. This can include things like bonus checks, salary increases, tax refunds and rebates, overtime pay, money made from hobbies or extra jobs, and yard sales.
You know the old saying, ‘If you fail to plan, you plan to fail.’ Failing to plan for savings will surely leave you without money when you need it most. Plan ahead, follow these tips and saving money will become a breeze.