6 Steps to Save More
You don’t need to set aside a huge sum of money all at once.
Saving is easiest when you plan for it, then take small steps towards your goal. Follow these five steps to start making gains.
1. Track Your Income
You need a goal to make a plan. To set a realistic goal, you have to know how much you make.
2. Track Your Expenses
Get a sense of where you're currently spending money. This may include groceries, utilities, transportation and other things you spend money on.
3. Figure Out Your Needs
What can’t you live without? Where might you be able to cut back? Some examples include snacks, entertainment, and travel.
4. Make a Habit of Saving
Decide on an amount you’ll set aside each time you get paid. Remember, every little bit counts.
5. Limit Your Spending
Spending less makes saving easier. Cut back a little where you can. Put the money you didn’t spend towards your savings goal. Use mobile banking so you can track your balance in real time. This can help you stay focused on your goals.
6. Make it Automatic
Directly deposit into a savings account every paycheck and try not to touch it. You’ll get used to budgeting with the money that’s accessible and allow your savings to accumulate. Out of sight, out of mind!
Follow the 50-30-20 Rule
Any bit helps, but you may be wondering what your goal should be. The 50-30-20 rule is a good rule of thumb.
- 50% on needs (rent, bills, groceries)
- 30% on wants (eating out, hobbies, entertainment)
- 20% on savings
Include minimum debt payments in your bills, but if you’re paying extra every month that portion should go into the savings bucket. There may be times when you can’t meet this savings goal or times when you can exceed it. That’s OK. Do what you can in the moment.
Consider online budgeting tools to help track spending and saving. Some banks provide these online tools for free.
Disclosure:
The information provided is for educational purposes only and is not intended to provide specific financial advice or recommendations.
