Saving is one of the first things we think about when trying to get control of our finances, but can be the most difficult to accomplish. Bills start to add up and saving never seems to be a priority. Take a step back and think about where your money is going and what spending habits you may need to change.  Take control of your savings by making these five tricks into habits. 

Pay Yourself First

Every month we have our consistent bills that have to get paid, but do you always put some of your paycheck into savings? Great savers treat realize “paying themselves first” or putting money into savings is the number one tool to stay on track. Along with all your other bills, treat savings like it is a bill that you have to pay before anything else. This way you don’t spend all your money and have nothing left to save. You can make it even easier by making it automatic! Designate an amount of your paycheck that you want to save and set up your account so that it automatically pulls that money into savings every pay period. Simple and hassle-free so you don’t even have to worry about holding yourself accountable.     

Prepare For Surprises

Have you ever been riding down the road then out of nowhere your tire blows? Or maybe your child is about to win the scoring goal, but falls and breaks their leg? There is no way you could have known this was coming, but you will still have to pay for it. If you do not have the money saved, it could lead to a insurmountable level of debt that you can’t get out from underneath. Savers make sure they have an emergency savings in case a surprise expense pops up. This is different from the savings you use for a specific purchase; this money is for family, medical, or natural emergencies only. The goal of this savings is to diminish the financial stress of the situation so you can focus on what is important, solving the crisis.             

Set Goals

Saving can be difficult as you go through your financial journey, and a lot of consumers fall off track.  To save does not mean that you cut out all of the day to day spending, but limit it. A great way to focus your saving is to set financial goals to help reduce unnecessary spending habits. Set your goals based on how much you need for a certain purchase and how long you feel it would take you to reach that goal. Certain goals may only take you a couple of months but others may be more expensive, and you need more time to build your savings. Once you are able to accomplish your goal and purchase the item, saving won’t seem so difficult after all.     

Think Of The Future

Saving is all about being prepared for your next step, but what about your last step? Retirement is a long term financial goal that everyone is working towards. A great way to save for the golden years is through an IRA. IRAs are saving accounts that produce a higher dividend rate and may provide a tax advantage. Also, your job may provide a retirement plan like a 401k. If your job matches a certain amount of your contributions to the 401k, your goal should be to hit that percentage. Plus, your contributions are usually tax-free which will help reduce your overall taxable income. Don’t wait, start saving for the future now.

Review Your Progress

As your financial journey continues, make sure to check in with yourself. Smart savers know that your financial situation changes so your budget should reflect those updates. Opportunities may arise where you can save money on some of your recurring bills with a lower rate. Refinancing a loan to get a lower rate will make it so you can save exponentially more, but you have to be aware of these opportunities. On the other hand, you may have reached one of your financial goals and can direct that money in another direction. The only way to know about these changes is by taking the time to review your financial progress. 

In summary, don’t worry about what you aren’t spending your money on, but look to what you can do when you have saved and are financially secure. Taking on just one of these habits will assist you in growing your savings because it makes the process easy and controllable. Every dollar you save is a dollar that you can use to support the goals that mean the most to you. 

Source: U.S. News, credible