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6 Steps to Save More

First PREMIER Bank

 

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!


First PREMIER Bank

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.