Saving money is hard. Once you start earning money, it’s tempting to spend your paycheck on things you want and need. Spending doesn’t always equate to being irresponsible, either – there are plenty of ongoing expenses you need to take care of throughout the month. Rent, groceries, and the occasional impulse purchase are all valid reasons to spend money. This makes it hard to save. So why should you prioritize saving your money?
The reality is, you don’t always know when you’ll need your savings, but you will need them at some point in your life. Saving isn’t just the responsible thing to do, it’s a necessity. There are plenty of reasons you may use your savings in the future.
Savings in the Short Term & the Long Term
You can maintain savings for a number of things. You may want to save up for a future event: a wedding, a house, or a vacation you’ve always dreamed of. Regardless of your intention, you’ll likely have to save money to make it a reality. Being strategic about your savings over time can help you to budget your spending appropriately while still ensuring you are constantly working towards your savings goals.
In addition to saving for exciting things, it’s also smart to save for emergencies. This can range from quick home repairs and replacing brown appliances to expensive, unexpected medical bills. These events are often completely unpredictable and don’t allow for much preparation. You never truly know when an emergency will happen, and you’ll want to ensure you have enough money should the emergency require a quick transaction.
People typically refer to an accumulation of saving as your “nest egg” – money you set aside for a specific intention that’s important to you. There’s no right or wrong reason to save your money; it’s just a smart thing to do.
To make your saving practices easier and more appealing, designating a purpose for your savings money can encourage you to save more and save often. You’ll feel more motivated to continuously save money rather than spend it on things you may not need. Identifying a clear purpose for saving money so will help you reach your goals rather quickly, as you will be constantly reminded of why you’re working hard to save money in the first place.
How Can I Save Successfully?
You may understand why it’s important to save, but saving money is easier said than done. Like many good habits, getting started is often the hardest part. Here are a few ways to save successfully and consistently:
Set & Forget
Depending on how you receive your income, you can adjust your paycheck deposit to be split up into multiple accounts. After setting up a savings account, you can determine a comfortable amount to be taken out of your paycheck and sent directly to your savings. Once it’s there, don’t touch it until you need it for your designated intention. Over time, you’ll be amazed at how quickly your savings accumulate, and it will encourage you to save even more.
Start Small & Build
To make saving money less overwhelming, you can start small – as small as you need! You can even start by saving just $5 a week. Establishing saving money as a habit by making small contributions will quickly making it part of your daily or weekly routine. Once you’re comfortable with your initial savings amount, challenge yourself to increase it every month. If you find one week you can spare a little more towards your savings, try to prioritize that over buying an item on a whim. Think about how you are investing in your future!
Save As You Spend
Another easy way to work saving money into your everyday life is by saving as you spend. This can help you to actively save money throughout the week while having no significant impact on your spending habits when you start. A simple way to incorporate this practice is to match how much you spend on small items with how much you deposit into your savings. For example, if you spend $3 on a coffee, you also then deposit $3 into your savings account. This will help you to constantly add to your savings, as well as to reevaluate unnecessary spending habits.
Download a change saving app
Have you ever been asked to round your total up to the nearest dollar when buying something at a store for a donation? There are applications available that can do the same thing with your personal spending. Mobile apps, such as Acorns or Chimesconnect with your mobile bank account and round each purchase up to the nearest dollar, storing the remaining change in your savings account. This may seem insignificant at first – so insignificant, you don’t even notice the difference – but it can save up fast. You’ll be surprised just how much your change can add up over time.
There are plenty of ways to reach your savings goals without significantly impacting your spending habits and lifestyle. That being said, it’s still incredibly important to maintain a savings account, whether you are intending to use your savings for something exciting or to prepare yourself for an emergency. Staying consistent with your savings goals is a great way to prepare for your future.
If you are having a hard time kickstarting your savings, try one of these activities to easily integrate saving your money into your daily routines. You’ll be amazed how your savings grow over time and relieved when the time comes to use them!
This Post Has 3 Comments
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