It’s never easy to save money. With so much to spend, it may seem like it’s mission impossible. However, it is a fact that even in these conditions, people are still saving, so why shouldn’t you? So here are 8 tips from experts to help you finally get your savings right!
Use The SFTS (Save First! Then Spend) Method: ‘Save first! Then Spend’… what is left over,” those are the words of Lou Cannataro, Partner, 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,” he says.
Save 25 Percent Of What You Earn: Millennial 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,” he says. “It will help set them on the path of financial freedom.”
Save Less Money At Once: Vice President of Deposits at Discover, Heather Roche, advices you to “Reduce your savings amount and increase the frequency.” “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.”
Ramp Up Your Savings Slowly: Arielle O’Shea, Investing and Retirement Specialist for NerdWallet suggests saving slowly, so to speak. “To save more, ramp up your savings slowly, in line with a raise or increase in income.”
Pay Yourself First, And Treat Spending Like An Essential Expense: Benjamin Glaser, Featured Editor with 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 the 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 need as well).
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 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.
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.
Now if you have any questions about these saving tips from the experts, feel free to ask in the comments down below! I’d love to help you out!