In a world where personal debt is considered the norm rather than the exception, one of the hardest things to do is keep a decent savings in the bank. Most people struggle to save back money, even though they know the importance of doing so. Here are four easy and useful tips that will help you start a savings and keep it growing.
Cut Out Just One Thing
If you’ve never learned to save before, a great way to get started is by cutting out just one small expense and saving the money you would usually spend on it. Say, for example, you go out to dinner multiple times a week. Decide to stay in on one night of the week you would usually go out, and put the money you would otherwise have spent on dinner in a savings account. Though this strategy certainly won’t create a massive savings, it will get you into the habit of saving money without putting too big a dent in your normal life.
Find Discounts and Deals
No matter how frugal you are, you’ll still need essentials like gas, groceries and clothes. When you really need to buy something, try to find a way to spend as little on it as possible. Discount deals and coupons may seem small, but if you apply them to every purchase you make, you can save a great deal of money over the course of months or years. Looking for discounts should also apply to large purchases, such as tires, like those at Discount Tire Centres, and car repairs, as even a small percentage of savings on these large expenses can equate to a fairly good amount of money.
Save Your Tax Refund
Many people, especially those in lower income brackets, receive a refund on their taxes each year. The problem with this refund is that it is often spent. Instead, you should save the money you get back from your taxes. Though saving throughout the year is critical, putting your tax refund into a savings account is an easy way to add a large sum of money to your nest egg once each year.
Set Savings Goals
Once you’ve spent a few months cutting back on a few things and finding good deals, you should start setting benchmarks for your savings progress. Your goals don’t need to be extravagant, but they should help you set back a good amount of money over the course of the year. Many people start out by saving as little as $100 per month, which is fairly easy to do. From there, you can work your way up as your income and expenses allow.
Being able to save and manage money is a critical skill. The sooner you begin, the better off you’ll be later in life. By following these simple tips, you can start building a habit of saving and create a reasonable savings without slashing your spending to the bone.