- Consider your needs vs. your wants. Think about items you purchase on a regular basis. These add up. Where can you save?
• Do you eat out at restaurants a lot?
• Can you cut back on daily expenses, such as coffee, candy, soda, or cigarettes?
• Do you have services you do not really need, such as cable television or a cell phone? - Set up a direct deposit and an automatic transfer to your savings account.
• When you get paid, put a portion in savings through direct deposit or automatic transfer.
• If you have a checking account, you can sign up to have money moved into your savings account every month. What you don’t see, you don’t miss! - Pay your bills on time. This saves the added expense of:
• Late fees, extra finance charges
• Disconnection fees for phone, electricity, or other services
• Fees to reestablish connection if your service is disconnected
• The cost of eviction, repossession and bill collectors - If you use check-cashing stores regularly, you might be paying $3 - $5 for each check you cash. Consider opening a checking account at a bank or credit union.
- If you get a raise or bonus from your employer, save that extra money.
- If you have paid off a loan, keep making the monthly payments to yourself. You can save or invest the
money for your future goals. - Avoid debt that does not help build long-term financial security. For example, avoid borrowing money for things that do not provide financial benefits or that do not last as long as the loan. Examples include: a vacation, clothing, and dinners out in restaurants.
- Save your change at the end of the day. Take that change and deposit it into the bank (every week or month).
- When you get a tax refund, save as much of it as possible.
- If your work offers a retirement plan, such as 401(k) or 403(b) plan that deducts money from your paycheck, join it! Most employers will match up to $.50 on each dollar you contribute. The matched amount is free money!
Meet Your Personal Savings Goals
To meet your personal savings goals, ask yourself these key questions:
1. What will I do now to save for my goals?
2. What will I do by the end of the month to save for my goals?
3. What will I do by the end of the year to save for my goals?
And, Consider these factors when making important savings decisions:
1. How much do you want to accumulate?
2. How long can you leave your money invested?
3. How do you feel about risking your money?
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