With online shopping sessions, your friends inviting you out to dinner, and the constant stream of influencers sharing their high-consumption lifestyle, saving money can actually feel pretty hard.
But if you’re kind of tired of seeing your savings account hovering around a certain number every month, or you’re concerned about an emergency popping up, then getting your spending under control is necessary.
And if you’re wondering how the financial experts do it, or what smart money saving tips they have, then I’ve grabbed a few to help you get started.
Use The SFTS (Save First Then Spend) Method
‘Save first! Then Spend’… what is left over,” says Lou Cannataro from Cannataro Park Avenue Financial. “You must set up automatic withdrawals to the various buckets (401(k), Roth IRAs, etc.) which are beneficial to funding your savings based on your own individual situation.”
So instead of going out to grab a coffee with a friend or making that Amazon purchase right after getting paid, first put a chunk of your money into your savings, investments, and retirement plan.
Find the Best Deals for Monthly Costs
Whether it’s your utility bill or car insurance, Mark Weston, director of financial support at Santander, says, “Whether the deals are for your energy costs or anything else for that matter – make sure you’ve got the best value for money for the service that is needed.”
Honestly, this is such solid advice. There are so many places were you can save money every single month. And probably a lot more than you realize!
Save 25% of What You Earn
Arian Vojdani, Investment Strategist at MV Financial (a wealth management firm), says, “Generally, I try to save a fourth of every dollar I earn, and I think this is a good guideline for other Millennials as well. It will help set them on the path of financial freedom.”
So if you want a simple but very intelligent way to save money, then either start saving 25% of your paycheck, or work your way up to that savings percentage.
Round Up Your Spare Change
Head of personal finance at Moneybox, Brian Byrnes says that it might be a lot less intimidating to round up and invest your spare change (rather than large chunks of money).
“-we found over the years with clients that the spare change which feels less like real money is easier rather than a big lump sum. It can also break down the barrier to investing and as time goes on, they will start to see the benefit of it without having to necessarily take a big leap with larger sums.”
And a simple way you can do this is to use the Acorns investment app (not sponsored). We’ve personally used it ourselves, and it’s a great set it and forget it method for savings and investments.
Save Less Money At Once
Vice President of Deposits at Discover, Heather Roche, advices you to “Reduce your savings amount and increase the frequency.” She continues, “Try breaking down your timeline into weekly, monthly, and quarterly savings targets. Keep the amounts small, but stick to a consistent schedule — with this method, you’ll see your savings increase steadily.”
And it make sense! It can be so easy to feel intimidated when it comes to saving a large chunk of money. But if you break it down and up the amount of times you save, then it takes quite a bit of the stress away.
Give Your Bank Account an Audit
“Don’t just wait for your bank to send you a text message saying you’re overdrawn,” says Kirsty Stone, a chartered financial planner and financial adviser over at The Private Office, “-it is really important for your overall financial health to be doing that. It is about having an awareness of what you are spending and where it’s going, because then you’ll recognise a pattern of things that are costing you more money than perhaps you need to be spending.”
Ramp Up Your Savings Slowly
Arielle O’Shea, Investing and Retirement Specialist over at NerdWallet suggests saving slowly. “To save more, ramp up your savings slowly, in line with a raise or increase in income.”
Another great way to stay consistent without feeling overwhelmed.
Saving is Essential Spending
Benjamin Glaser, Features Editor at DealNews asks us to “Think of saving as essential spending, not a luxury, like ‘paying yourself’ before you can pay any other bills.”
Quick Tip: This is a smart way to do it because if you pay yourself first, you’ll get more creative when it comes to paying the bills (and not spend money on things you don’t actually need).
Ask HR to Split Up Your Paycheck for You
Brianna McGurran, Student Loans and Personal Finance expert at NerdWallet wants you to ask HR to split up your paycheck. “I’ve seen people have lots of success splitting their paycheck into separate accounts,” she says “I didn’t even know this was possible at my first few jobs, but it’s probably the most efficient way out there to save. To set it up, all it takes is a few minutes with HR or on your online payroll portal, and you’re in business.”
Don’t Just Have a Savings Account, Have a High-Yield Savings Account
“Open a high-yield online savings account if you don’t already have one, and ask HR to add it as a destination for direct deposit, in addition to your current checking account. My company lets you send either a flat amount or a percentage of your earnings to this account per paycheck; in this case, I’d ask to deposit $150 per paycheck into my savings account. And voilà; on your next pay day, you’ll have $150 in savings, no recurring transfer from checking needed.” McGurran says.
Talk about efficient! Now you’re not just saving, you’re saving intelligently.
Make A Budget
“Have a budget,” Glaser says. “No doubt it will be a lot easier for you to save when you are working on a budget. This helps to eliminate reckless spending.“
And if you’re curious about the right way to set one up, then here are 7 simple steps for making a budget.
Grace Moser is the author and founder of Chasing Foxes, where she writes articles to help women create a life they love in big and small ways. She's been a full-time traveler since 2016 and loves sharing her experiences and exploring the world with her husband, Silas. Her lifestyle and travel advice can also be seen on sites such as Business Insider, Glamour, Newsweek, Huffpost, & Apartment Therapy.