October 12th is National Savings Day, a day designated to celebrate the act of saving and share simple ways to polish existing saving habits. Saving money doesn’t need to be difficult, as many people have already perfected the art of saving. Saving money can be fun if you simplify saving automatically as a financial resource for you to use later when you need it. When you’re aware of how to save, budget, and automate savings, you’re well on your way to successfully saving. Here are some tips to get you to start saving:
Ways to save
- Track your expenses: A significant first step to saving money is understanding how much you regularly spend and where you spend it. Keep a log of your expenses for one month to gain an accurate view of your current spending habits. There are many apps and online tools that can assist you with this as well!
- Budget for savings: Next, it’s time to organize your expenses into a workable budget, listing savings as part of your monthly budget. You can find more tips on creating a budget below.
- Consider cutting your spending: If your current expenses are so high that you can’t save as much as you’d like, it is likely time to trim your costs. Identify nonessentials that you can limit spending on or eliminate, such as eating out and entertainment.
- Set a goal: One of the best ways to incentivize your saving is by setting a goal. Are you planning a wedding, want to open a retirement savings account, or dreaming of a tropical vacation? Figure out how much money you will need and start saving accordingly. Spreading your savings over a long time can help you and your budget not get overwhelmed.
Tip: Make saving automatic, so you don’t even need to think about it by setting up automatic deposits into a savings account.
Create a personalized budget
A budget is a plan for your monthly income. Often, people like using a budget to help them reach financial freedom without being stressed along the way. Here are a few tips to consider as you create the right budget for you:
- Figure out your after-tax income
- Try the 50/30/20 rule: 50% to needs, 30% to wants, and 20% to your goals
- Track progress toward reaching your saving goals
- Automate savings
- Be aware of upcoming one-time spending events (like vacations, concerts, weddings, etc.)
- Revisit your priorities often
Work with your financial professional
Your financial professional can assist you with a plan to save more to meet your financial goals. Contact them today to get started!
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