We all know we should save money. Some of us even have something we’re saving for. But if the statistics are right, most of us aren’t doing a very good job at it. The thing is, it’s not even hard once you have a plan. And we’ve got a few simple tips to help you get started.
A budget is worth its weight in gold.
Saving money starts with knowing how much you can save—and that means you need a budget. Be realistic about your monthly expenses. It’s better to overestimate them. Then earmark an amount from what you have left over to put into savings.
Pay yourself first.
Don’t think of saving as taking money out of your pocket. Think of it as investing in yourself. So make it the first check you write. You’ll be surprised how quickly it starts to add up. And if you’re doing a really great job, don’t hesitate to give yourself a raise—as long as it fits within your budget. (See above.)
Slow and steady. But especially steady.
The most important thing about saving money is to make it a habit: whatever you’ve determined you can save out of every paycheck every time.
Don’t stuff it in your mattress.
Well, you can if you want to. But there are better places to save your money…say, a savings account. Most savings accounts will pay you interest on your money—which means your savings grow even faster. And a savings account may be considered an asset when you’re applying for a loan.
The bottom line when it comes to saving money is your bottom line. Add to it steadily and watch it grow!