In this economy, people are lucky to have enough income to pay their bills let alone save any money. The job market is wavering, threatening everyone’s paycheck. People are still spending like they did before the recession and, as a result, debt bills are piling up. Between paying monthly bills and making minimum payments to credit lines, most people would agree that saving money is the farthest from their minds. With finances tighter than ever it is important to being actively saving for a rainy day. Here are a few tips to make saving money easy:
Schedule an automatic checking to savings transfer
Most banks offer a feature that allows you to schedule an amount to be transferred into your checking account each month. The best part is that you are in control of how much is transferred and when the transfer takes place. Set an amount that you can afford and schedule that transfer to take place after a paycheck. That way, you won’t be tempted to skip saving this month because you didn’t have enough in your account. By having the transfer scheduled to transfer automatically, you won’t have to try and remember to do it yourself. Try setting a goal to increase the amount of the transfer every 3-6 months.
Get rid of your debit card
Unless you are vigilant about saving your daily receipts and deducting them from your checkbook register, using a debt card can drain your account much faster than using checks or cash. The convenience of using a debit card puts your spending out of mind, and making keeping up with every penny more difficult. Try taking out cash on Monday for your weekly expenses and once that money is gone, don’t go back to take more out. The idea is to “keep an eye” on your money and having cash in hands makes spending more noticeable.
Save your spare change
Many people tend to have a jar of spare change lying around the house. Once you deposit the change left over from breaking a dollar at the end of the day, save it in your change jar. Take your change jar to the bank every 6 months to deposit the change into your savings account. It’s almost like free money since people rarely view change as anything substantial. You would be surprised how much change adds up to over a period of 6 months.