The subject of money is difficult, although it doesn’t have to always be that way. There is no better time to tackle the topic than now. We’ve found the following five ways to help you save money for the future. Follow along to see how you can set yourself up for better financial success and watch as your savings begin to double.
Follow the 30-Day Rule
We all have a tendency to make impulse purchases we don’t really need every once in a while. To better control the situation, put the item back on the shelf and wait for a full 30 days before making the purchase. In those 30 days, you’ll begin to see if that same product is still on your mind and if you’ll really need it. If you do make the decision to purchase it after the 30 days, you can put specific money away for the item during the 30 days.
Automate Savings Transfers
Instead of constantly relying on yourself to move money over to your savings, set up an automated system to move a set amount on a specified frequency. For instance, every pay day, set an amount to be moved into your savings account that same day. This way, you won’t forget to do it, and that money is instantly deposited and saved without you having to do a thing.
Communicate With Someone
Whether it’s a roommate, spouse or even parents, it’s good to communicate your financial schedule and receive feedback on how to better save and pay for your living situation. By speaking honestly with yourself and others, you’ll have a better understanding of what you can afford to spend on expenses and the other items that may need to be placed aside during this time.
Invest for Long-Term Savings
Instead of saving large amounts to spend in the short term, take this time to put away small amounts of money that can accrue a substantial amount of money over time. Invest your money in a Money Market Account or a High Yield Savings account. This type of investing is more feasible and can be accessed later in life. For example, if you have the desire to purchase a special house you’ve always wanted during retirement, start moving small amounts of money to the side to be spent at a later date.
Don’t Touch Retirement Funds
There are penalties for dipping into retirement funds too early. If you happen to find yourself in a financial situation where emergency funds are needed, make this the last possible option. Retirement funds are aimed at securing a distant future, while other savings accounts are meant to quickly aid any emergency situations.