3 Tips to Help You Start Saving Money Now
Sometimes just the thought of retirement or an unplanned emergency is enough to overwhelm people when they start thinking about saving money. According to an America Saves Week survey, only two out of every five U.S. households report good or excellent progress meeting their savings needs and only 43 percent of people surveyed have automatic savings outside of work.
It’s important to remember any savings is better than none. It’s a simple thought, but it works. Savers with a plan are twice as likely to save successfully.
Here are three quick tips to help you start saving and feel confident about reaching your goals!
Take a look at your income and your bills. What can you afford to tuck away? It could be as little at $5 per paycheck, but over the course of a few months or years you could have a down payment for a car, a nice getaway or emergency fund, or it could be Christmas shopping money. It’s important to set an attainable goal. It’s a good idea to write that goal down and stick it on your refrigerator or someplace where you will see it often. Whatever goal you come up with, get the wheels in motion and stick with it!
Experts across the board suggest starting to save for retirement in your 20s. While social Security is a means of income for retirement, it was never designed to be an individual’s only source of retirement income. Social security only replaces about 40 percent of an average income.
If Social Security and retirement planning are like foreign languages to you, there are tools to help. The federal government recommends the Ballpark E$timate Online Tool through choosetosave.org.
Out of sight, out of mind
Five dollars could turn into $100 without much effort from you. For example, Honor Credit Union members can set up a special savings account with a customizable nickname, and you can have it set up to have a certain amount of money automatically transferred to that savings account every month or every pay period. For individuals with direct deposit, it’s almost effortless to start saving money.
Watch it grow
This tip is the hardest for a lot of people to follow through on. You know you want to go on that dream vacation, but it’s going to take you months to save up enough money, and one day at a store you spot a pair of shoes that cost a few hundred dollars, which is what you just happen to have saved in your vacation fund. We’re not saying don’t buy the shoes, but just remember to take a second to think about what the best use of your money is. The longer you can fight the urge to make a big impulse purchase and continue to save the easier it will be and the better you will feel about how much you are saving.
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