When it comes to saving money, it may seem like the only surefire way is to put huge amounts of money in the bank in the hopes of great interest and great rewards. While this is certainly an effective method, it is not the only way, and consistent small additions to your savings account can also help you along your way.
If you have a goal to save towards, saving becomes a lot easier, and you can keep that goal in mind as you make your daily decisions. If for example, your family is saving for a big trip, you can think of the expenses for that trip and then start making smarter financial decisions to help you work towards your new and clear goal.
Stop Eating Out
One great first step in this money saving technique is to eat out one less time a week than you usually would. Then, calculate how much you would have spent on your meal out, and put that money in to your trip savings account. This is a simple saving method, and you won’t miss the money because you would have been spending it otherwise.
Make it Automatic
Another great way to save money simply is to set up automatic savings with your bank, this means setting up a dollar amount that you want automatically transferred from your checking account to your savings each month. This will save you the hassle of transferring the money yourself each month, and will prevent you from spending that money before you have a chance to spend it.
Save Your Change
A third great tip is to count your pennies, literally. Make an effort to pay for certain purchases with cash, then take the extra change and put that into savings, this method will help you to save small amounts of money that will quickly add up to bigger savings.
Fight Impulsive Spending
Another useful tip is to make and keep a savings goal to save the same amount that you spend on small impulsive purchases. This means that each time you buy a drink at the gas station, a movie ticket, or a trip to the zoo; you should put the same amount of money into your savings account. This method will help you to think more carefully about your small purchases, and will also ensure that your savings account balance continues to grow.
Make and Keep Short Term Goals
By making small and attainable short term goals to lead up to your long term goals, you will find yourself more able to succeed, and your progress will be much easier to track. As you meet these smaller goals, you will be able to see yourself approaching the long term goals you have set for yourself.
Strive for efficiency, buy what you need and the occasional well thought out splurge; don’t make small daily splurges without accounting for them and saving money accordingly.
With all of these small saving strategies, you will be able to meet your saving goals much more simply, and after you build a habit, you won’t even need to think about it anymore. Start today, and you will be on your way to your next financial goal.