The hardest thing about budgeting and saving is getting started and sticking with your plan. Whether it’s cutting down on $4 lattes or skipping the weekend getaways, saving can be a hard sacrifice to make. However, if you can avoid thinking of saving as restrictive, it can be easier and more fruitful for you.
Below are some steps to take to get on the path to success for saving and budgeting.
Set Savings Goals
Want to buy a home? Want to pay off your student loans? Want to save for retirement? Visualizing what you are saving for is one of the best ways to get saving. As such, set targets and timelines to have concrete goals to stick to. Opening specific savings accounts for specific goals can also be a great way to save.
Make a Realistic Budget
Making a budget that fits your income and expenditures will help you meet your savings goals and stay on track. Review your finances over the past few months to get a true picture of your reoccurring expenses, spending habits and trends. Set a budget based on the amount of money you have to spend and identify areas where you can cut spending to increase your savings.
Use the Right Financial Tools
Are you saving for a short-term goal? Consider an FDIC-insured savings account or a certificate of deposit. Or, if your saving goals are more long-term, you should speak with a financial advisor to identify the right savings and investment opportunities. Setting clear goals will help you determine what financial products and services you need.
Spend to Save
Utility costs rarely go down with time. Energy costs can account for a significant portion of your monthly costs. Get an energy audit of your home done to figure out where you can invest in energy conservation to lower your monthly energy bills.
Plan & Make Saving Automatic
The temptation to spend money in your current account can be overwhelming. Automating a savings transfer of the amount you want to save from your checking to a specific savings account to make saving automatic.
With the right strategy, budgeting and saving can be made easy. If you’re interested in a new Savings Account or other financial product to get started on the road to savings success, contact Mechanics Bank today!