Remember old-school piggy banks? If you had one as a child, chances are you remember the joyful feeling you got when, after weeks of depositing your allowance, you shook it and found it crammed full of change. While you likely now keep your savings in a bank rather than a pink ceramic pig, that satisfied feeling you get from watching your hard-earned money accumulate is the same.
Saving money. It’s wise. It’s rewarding. So why is it so difficult?
If the pandemic has shed light on anything, it’s that it never hurts to be prepared. So many of us were thrust into unprecedented situations over the past two years, from being furloughed to getting sick and being unable to work. These unfortunate circumstances opened our eyes to the critical importance of having savings to fall back on.
Furthermore, the pandemic woke a lot of people up to what their true values and priorities are. From leaving unfulfilling jobs to spending more quality time with loved ones, going back to school to pursuing a hobby, and everything in between, many of us have come out of the pandemic different people than when we entered it. As we reflect on our values and priorities, it’s a perfect opportunity to reassess our financial priorities as well.
Here are 3 simple ways to save money better than you did last year.
Pay yourself first
One of the easiest ways to save money is to pay yourself first. What exactly does that mean? Essentially, it just means taking a set amount or percentage off the top of each paycheck and putting it into a separate savings account. Many companies allow you to automatically split your paycheck into different accounts, but if yours doesn’t, get into the habit of transferring a set amount to savings as soon as it hits your account.
Maintain various accounts…and name them
Are you saving up for retirement, saving for a new car, and saving for your family vacation next year? Make things easy on yourself and create multiple savings accounts. Saving money can be difficult, especially considering that so much of our lives are based on instant gratification, but when you have a specific goal in mind, keeping yourself on track can be less of a challenge. It’s also helpful to go one step further and name each account based on what you’re saving for. Seeing your goals spelled out in front of you will reinforce your long-term savings goals.
Review monthly payments
One of the simplest ways to cut back on spending is to eliminate unnecessary recurring payments. Do you subscribe to Netflix, Apple TV, Disney+, and HBO Max, on top of your cable? Consider choosing only your top two. Do you have a gym membership that you stopped using during Covid? Maybe it’s finally time to cancel it. Is your cellphone bill obscenely high? Perhaps you could investigate alternate carriers. While each individual subscription may not seem like it’s breaking the bank, recurring payments add up quickly. Just think of how quickly that money would stack up if you saved it instead?
Get in touch
We hope these tips on how to save better help set you up to achieve your goals in 2022 and beyond. Reach out to our team if you’d like to further discuss taking control of your finances and creating a financial road map to success.