You know how to save. Spend less than what you earn and put the difference in a safe place.
So why isn’t it always that simple?
Well, sometimes it can be. Here are some simple tips that will help you get it wrong and save more. Use them to divert money to savings before you even notice it’s gone from your wallet.
1. Record your “roundups”
Use a bank that “rounds up” purchases and transfers the difference to your savings. You probably won’t miss these small amounts, but over time they can add up.
Some examples :
- Bank of America’s “Keep the exchange savings program”Rounds each of your purchases to the next dollar when you use a participating debit card. The bank automatically transfers the change from your checking account to savings.
- Allied bank round up purchases a debit card, electronic payments and checks issued from an eligible checking account. It automatically collects the money when the “roundups” reach at least $ 5, transferring it to your savings.
As always, check a bank’s rules and confirm that no fees are involved.
Advice: Applications – Tassels, Qapital and Digit are a few – can do it too. However, there can be some app costs involved, so take that into account when deciding if an app is worth it.
2. Set it up and forget about it
You’ve probably heard this advice: “Pay yourself first every month”. In other words, treat your savings account like another bill and pay it before paying another.
Good advice, but it works even better when you can forget to pay. Do this by setting up a recurring automatic transfer from your checking account to your savings account each month. Out of sight out of mind.
Check your bank’s website or call to learn how to automate transfers between accounts. This may require registration for the bank’s online or mobile service. Depending on the bank, you can schedule transfers between accounts within a bank, or even between banks.
Advice: If your bank doesn’t offer this option, it might be time to shop around for a new bank.
3. Use a cash back rewards card
Using a credit card that pays rewards for certain types of purchases allows you to recoup some of your spending.
I’ve earned around $ 118 so far this year on a cash back card tied to my Amazon spending. It’s not a huge amount, but it covers the cost of a few purchases each year. Free is good.
Advice: Find cash back credit cards at the Money Talks News Solution Center. Use the “Card type” menu to select the “cash back” cards.
4. Ignore increases and bonuses
Increase your retirement savings by sending increases and bonuses directly to your company’s retirement savings plan.
Pretend the increase never happened. Keep spending on the same level as before, giving your savings plan a boost.
advice: Read “7 Ways To Save For Retirement Without 401 (k).” “
5. Offered a 401 (k)? Use it
Don’t make the mistake of ignoring your 401 (k) at work. The beauty of these plans is that your retirement savings can accumulate unnoticed as you continue to live.
If your current workplace doesn’t offer a pension plan, consider switching jobs to another.
When you sign up for a 401 (k) plan, you are asked to say how much of your paycheck – 6%, for example – is sent directly to the plan. As your paycheck grows, the amount you save grows because 6% of the new larger amount means more money sent to investments. You, meanwhile, do not notice the change.
Don’t stop there. Try to contribute at least as much as your employer is willing to give you, so that you get all the money you deserve from your job.
Advice: “401 (k) Avoidable Mistakes at All Costs” tells you how to maximize employer matching contributions.
6. Increase pension contributions
Whenever you can, especially when you get a raise, increase the percentage of your salary that goes to your 401 (k). Increase the amount of your contribution in small increments, so that you don’t feel affected by your take-home pay.
Advice: Do this as often as possible, to keep the savings growing.
7. Divert coins to savings
Take the change from your cash purchases and put it away. An empty pot or can of coffee will do.
Make it a fun game for the kids to save the whole family and help them learn the habit of saving from a young age.
Advice: At the end of the month (before your collection gets too heavy) find a Coinstar coin sorter near you, count the money and deposit it in your savings.
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