Saving money can help you make progress toward the things that matter most, whether you’re building your retirement fund, saving for a home, or setting money aside for a new car. You don’t have to make huge changes to get started. Small, consistent habits can add up over time and help you reach your goals without relying on debt. If saving hasn’t always been easy, that’s okay. The important thing is finding an approach that works for your budget and making it part of your routine. Here are some simple ways to make saving a priority and stick with it.
You'll be more likely to save money, if you make it a priority. Sit down and figure out what you'd like to save money far: retirement, a house, car, an emergency fund, or college-and how much it will cost. These steps can help you build a savings habit that lasts.
You’re more likely to save when you know exactly what you’re saving for. Start by listing your goals, such as retirement, a house, a car, an emergency fund, or college, and how much each one will cost. Then make your plan:
It’s natural to pay everyone else first, from your landlord or mortgage company to your utility provider. Paying yourself first flips that order. As soon as your paycheck arrives, a set amount goes into savings, and then you divide up the rest to cover everything else.
When saving comes first instead of last, it no longer depends on whatever happens to be left at the end of the month.
Automatic saving is one of the easiest ways to stay consistent. You can set up a recurring transfer from your checking account to your savings account, or split your paycheck so part of it goes straight into savings. Our guide on how to use direct deposit to help you save walks you through it. Once it’s set up, saving happens without you having to think about it.
A budget shows you exactly how much money comes in each month and where it goes, which makes it much easier to find room for savings. It doesn’t have to be complicated, and our budgeting 101 guide walks you through setting up a workable plan. Once you can see your spending clearly, look for places to spend a little less or earn a little more, and put the difference toward your goals.
Even when money feels tight, chances are you have a little extra you didn’t know about. Here are some ways to find it:
If you’re not sure which goal to tackle first, an emergency fund is a great place to start. Without a cushion, even a small surprise expense like a car repair can end up on a credit card. Start small, since even a modest amount gives you some security, and put windfalls like tax refunds or cash gifts toward it. Our guide to help you build a savings plan suggests starting with at least $500 and working toward three to six months of salary.
One of the first steps to help make saving a priority is budgeting. As unpleasant as it may sound, creating a budget is nothing more than examining your income and monthly expenses in order to determine exactly how much money you have coming in and where you're spending that money. Once you've got a clear understanding of your current budget, our challenge is to find places where you can spend less or earn more to help you achieve you financial goals.
Now that you know how to make saving a priority, choose one or two of these tips and give them a try. After a month or so, add one or two more, and keep going until you find the system that works best for you.
When you’re ready to give your savings a home, a First Alliance savings account is an easy place to start. Our Main Share Savings account opens with just $5, earns dividends from the first day of deposit, and has no monthly service fees. We’re here to help members in Rochester and across Southeast Minnesota reach their savings goals, one step at a time.