Saving money may feel like an uphill struggle, but with these creative strategies you can make saving more enjoyable and set yourself up for future financial success.
Utilize apps such as Digit and Capital to transfer small amounts from your checking account into savings every week or biweekly.
1. Set a Savings Goal
Establishing a savings goal will help keep you on the path toward reaching your money objectives. For instance, if you want to cut back on spending for coffee and lunches, challenge yourself not to purchase them for one week and put that money towards savings instead.
Create and meet short-term savings goals easily by opening a high-yield savings account or laddering CD; for longer-term goals consider naming them Mountain Trip 2022 or Dream Home to keep yourself motivated! Our personal goal tracker also makes tracking progress simple!
2. Automate Your Savings
Automating your savings can be an effective tool to help you reach your financial goals more quickly, no matter your level of experience. Begin by listing all of your monthly expenses; start saving on those and save the rest to reach them more quickly!
Make an effort to set up automatic transfers from your checking account to savings accounts. This technique may also prove effective for auto-enrolling into company 401K plans and paying down credit card debt; just ensure there's enough funds in your checking account to cover bills!
3. Take the 30-Day Rule
This strategy helps you slow down before making impulse purchases and practice delayed gratification. From there, you can either decide if the item really appeals or figure out if it will fit within your budget, if applicable.
When purchasing on impulse, take 30 days to consider your decision before spending money from savings accounts or even checking accounts to cover it. That way, should the item still appeal to you after this period, you have your funds ready if needed.
4. Set a No-Spend Challenge
The No Spend Challenge is a practical strategy to reduce spending and focus on saving, for whatever time period you select. Impulsive shopping can easily derail plans; setting an end goal helps stay on course and stay accountable.
Consider setting yourself a goal that's specific, like paying off debt or building an emergency fund. Talking with friends and family about triggers may also help so they know what you're aiming to avoid.
Before beginning this challenge, review your budget and bank statements to assess how much non-essential spending you're doing each month and then transfer that amount directly into an emergency savings account.
5. Round Up Your Purchases
Round-up savings apps help users keep track of their purchases by rounding up purchases to the nearest dollar and investing the spare change into savings or investment accounts. Most apps allow you to connect checking and credit cards so you can view all rounded purchase amounts easily in one central place.
Some apps, like Worthy, allow you to invest your spare change in stocks, ETFs or bitcoin while Acorns and Stash offer investment portfolio building using round-up balances accumulated over time. Either way, seeing your savings account grow can be very motivating!
6. Put $1 in Your “Money Mistake” Jar
No matter if it's for a house down payment, college expenses or travel plans, there are various creative ways to stash away funds.
Common money mistakes include not sticking to a budget, overspending and incurring debt. Setting specific financial goals can help avoid these costly mistakes in the long run; money-saving challenges make saving fun and exciting - helping ensure your savings stick with you longer!
7. Take a Self-Assessment of Your Spending Habits
Monitor how much you spend is one of the easiest and most effective ways to build up your savings account. You can do this manually by keeping track of receipts or use an app that connects directly to your bank accounts to collect this data.
Compare your actual spending to your budgeted amounts, looking for any recurring expenses you can cut back or eliminate altogether. Sarah enjoyed her daily coffee habit but discovered it cost her $5 each day - that adds up to $150 in monthly expenses!
8. Put Your Talents to Work
Starting to save money can be daunting. Many individuals reach a point in which they have attempted to reduce spending as much as possible but still cannot manage to save.
Consider how your talents could translate to an income source. For instance, interior decorators skills could translate to selling their designs; pet sitting might also provide extra income opportunities.
Consider teaming up with someone to keep you motivated about saving. Your savings buddy could check in regularly with you to help ensure you remain on track while maintaining an optimistic approach to saving.
9. Create a Separate Savings Account
Establishing separate accounts for each of your goals can help you to track their progress more closely, and prevent you from accessing funds that were set aside specifically for one purpose (like an emergency fund) before they're truly needed.
Experts advise building up an emergency fund of three to six months' essential living expenses in separate buckets for easier tracking and less impulse spending.
At first glance, multiple savings accounts may mean additional fees and minimum balance requirements to manage. Before embarking on this strategy, be sure to familiarize yourself with FDIC limits, maintenance fees and APY tiers before moving forward with it.
10. Make a Birthday Bank
This adult adaptation of a piggy bank provides an easy and straightforward way to start saving. Instead of spending every time you receive $5 bill, place it instead in your birthday bank rather than spending it immediately.
Saving money requires discipline, but there are unconventional tactics you can use to make it more exciting and engaging. From teaming up with another saver or using DIY skills, these unconventional tips can help increase the amount of cash that accumulates over time.
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