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We all know savings are important to helping us reach our financial goals but that doesn’t make it any easier to get started. There always seems to be something more pressing than putting money aside.
If you’re wondering how to improve your savings, you’ve come to the right place. Keep reading as we look at some unique approaches designed to boost your nest egg and make saving a regular habit.
How to Save More Money
What does “saving the extra” mean to you? Whether it is dropping spare change into a jar or making monthly payments into your savings account, these three little words can mean big money down the road — just by learning how to save money today.
Check out these 10 ways to improve your savings.
1. Add a Savings Line to Your Budgets
Rent, utilities, internet: every important piece of your financial picture gets a designated spot in your budget each month, so why not your savings?
We don’t always consider our savings goals a priority in our short-term financial planning, but it should be. Prioritize your goals by adding a “savings” line with an affordable amount to your budget. Pay yourself with each paycheck.
2. Stow Away Your Windfalls
Did you receive notice of a raise? Maybe you have a bonus coming your way for a job well done. Whatever the bounty may be, try allocating any unexpected funds to your savings goals. You won’t miss the percentage raise you receive when you divert it into your savings account. You weren’t expecting the bonus anyway, so tuck it away for a rainy day!
3 Automate Your Savings
Try setting up an automatic transfer from your checking account to savings every payday. By automating the savings process you won’t forget to set money aside or be tempted to skip a month. In this way, even a small, consistent amount can grow over time without requiring any extra thought or effort.
4. Round-Up Programs
Take advantage of the many round-up savings tools offered by banks, credit unions, or financial apps. Every time you make a purchase, your total is rounded up to the nearest dollar, and the difference gets deposited into your savings.
5. Cut One Small Expense
Every month, identify one non-essential expense you can reduce or eliminate, like a daily coffee run or a streaming subscription. You might be surprised how many extra “conveniences” there are. Redirect the money you free up to your savings account instead.
6. Use Cash-Back Rewards
If you have a credit card that offers cash-back rewards, try allocating your rewards to your savings account rather than spending the money. It’s an easy way to grow your savings using purchases you’ve already made.
7. Take Advantage of Employer Match
If your employer matches contributions to your 401(k), be sure to contribute enough to receive the full match. Matching funds are essentially free money that goes towards your retirement savings, so be sure not to leave this money on the table.
8. Set Savings Challenges
Saving for the future is a big goal. Struggling to get started? Set yourself a short-term savings challenge, such as the well-known 52-week challenge where you save $1 the first week, $2 the second, and so on. These small, incremental steps can help make saving feel more achievable.
9. Sell Unused Items
Declutter your home and sell items you no longer need through online marketplaces, consignment stores, or a good old-fashioned yard sale. Deposit the proceeds into your savings account to give it an immediate boost.
10. Split and Save Your Tax Refund
Saving at tax time can be a big step toward meeting your financial goals. This tax season, opt to split a portion of your tax refund into your savings account. For many of us, the tax refund is the largest check we will receive all year, which makes it the perfect opportunity to start or grow your savings.
Jumpstart Your Savings with Scenic Community
At Scenic Community Credit Union we are deeply invested in the long-term success of our members. That’s why we do everything we can to help them save, with great interest rates and a full range of savings and investment products.
Need a little help getting started saving? Become a member today. We’ll help you put together a savings plan and provide the financial tools you need to reach your goals.