Saving money means adopting intelligent strategies and putting them into practice. It may be a challenge to put money aside for the future instead of spending it today, but it's worth the effort.
The goal of is to help Americans increase their savings efforts America saves weekThe annual campaign is a six-day call for action, supported by over 1,700 participating organizations – including government agencies, financial institutions, schools, and nonprofits – that work to support communities to improve their financial performance.
America Saves Week organizers focus on six savings strategies throughout the week. You don't have to use these strategies only during America Saves Week. We recommend that you use these approaches at any time to save money.
1. Save automatically
Saving money is probably not the first thing to think about when you get your paycheck. Or the second. Or maybe the third.
If you automate your savings, you don't even have to think about it.
Pay yourself first by specifying a percentage of your paycheck to be deposited directly into a savings account before spending your money on bills and purchases. Or you can set up an automatic transfer from your checking account to your savings account.
Once you've made the first arrangements, you don't have to make any extra efforts to save money. Just sit back and watch your savings grow.
2. Save with a plan
You may have heard this saying: If you don't plan, you don't plan.
Let us not give ourselves the chance to fail when it comes to saving money.
Include saving as a line item in your budget – this is essentially your plan for your money. If you don't have a budget yet, go here our simple budgeting guide,
How much you want to save is entirely up to you. For a guide that 50/30/20 budget method recommends spending 20% of your take-home salary on financial goals such as saving, investing, and debt reduction.
However, if you can't save nearly 20% of your budget, don't stress. Every little bit counts.
"I encourage clients to save a little money on every paycheck, even when their situation is tight," said Dwain Phelps, founder and CEO of Phelps Financial Group, "Over time, this discipline will create the ideal financial environment in which most people want to live."
3. Save for the unexpected
Nobody likes to think about bad things, but it is important to prepare for unfortunate events.
"Not being prepared for unexpected expenses could destroy the financial goals," said Phelps.
Have a emergency funds provides a safety net to help you overcome a crisis, e.g. B. Take your dog to the veterinary clinic or be released from work.
I encourage clients to save a little money with every single paycheck… Over time, this discipline creates the ideal financial environment in which most people want to live.
Experts recommend that you have living expenses of three to six months in your emergency fund. If this seems intimidating, start with a smaller goal – saving $ 1,000 for emergencies, for example – and work your way up slowly.
4. Save to retire
Regardless of how far away it may be, your savings priorities should include long-term goals like retirement,
A common recommendation is to save at least 15% of your income. However, this number may vary depending on what age you are saving for retirement and what you want your retirement to look like.
"For many people, especially in their twenties and thirties, retirement is so far away that it's an intangible concept," said Jeff Klauenberg, certified financial planner and owner of Klauenberg Retirement Solutions, "Imagine you were retired today. Look at people you know who are retired. Whose retirement do you want and who do you want to avoid? "
When you meet with a financial professional, you can set up a retirement plan that best fits your individual situation. At the very least, you should take the opportunity to take advantage of your employer's meeting 401 (k) Game if offered. If your job does not offer a 401 (k) plan, open an individual pension account – such as traditional IRA or Roth IRA – and save.
5. Save by reducing debt
Sometimes it is difficult to put money aside because so much debt is paid off. But you can think of saving and debt reduction as financial goals that go hand in hand.
The sooner you repay your credit card balance or loan, the sooner you will release money that can be used to save. That doesn't mean you have to clear all of your debt before you can contribute to your savings goals. You can work on both at the same time.
We have tips on this Pay off credit card debt. Address student loan debt and solve medical debts – because not all debts should be treated equally.
6. Save as a family
Saving money becomes easier when everyone is on board in the household. If you commit to saving, but your spouse and children only spend money, your efforts can be completely derailed.
Start by communicating openly about your plans to save money. Hold a month Family budget meeting to talk about current savings goals. Together, brainstorming methods that can help you cut costs – for example, saving electricity and water to cut your electricity bills, or the frequency with which you can take away in a month.
If you have children, make an effort Teach your kids money – especially when it comes to saving. Financially educated children become financially educated adults who can pass on knowledge and wealth to future generations.
Nicole Dow is a senior writer at The Penny Hoarder.
Ready to stop worrying about money?
Get the Penny Hoarder Daily
Data Protection Policy