Saving money can be a challenge for some, but it doesn’t have to be. Believe it or not, there are a few tricks and tips you can use to learn how to save money every month. If you follow this advice, you won’t even have to think about it.
Set Up Automatic Transfers
Setting up automatic transfers is one of the best ways to save money. All you have to do is go into your bank account and set up a transfer from checking to savings on the day of or the day after you get paid every month.
By activating the transfer the day of or day after you get paid, you’ll make sure to pay yourself first. Paying yourself first is key because when you pay yourself after you spend everything, chances are you won’t be saving often.
When you take the money out of your account before you spend anything, you’re reducing the amount of money you have available to spend each month. It’s a simple trick, but if the money isn’t in your checking account you’re much less likely to spend it.
Direct Deposit Part Of Your Paycheck In A Savings Account
Setting up a direct deposit to your savings account is another great way to pay yourself first. The best thing about a direct deposit is it takes a step out of the process. The money never touches your checking account so there is no way you can spend it without the effort of transferring it back to your checking account.
So how do you set up a direct deposit into your savings account? Head to your human resources department or your self-service human resources website and fill out a direct deposit form. These forms will normally allow you to split your paycheck up into more than one account.
Specify how much of your paycheck you want to go into savings and put the rest in your checking account. It’s that easy and you’ll be saving money every paycheck.
Invest In Your 401(k) Through Automatic Contributions
If you know yourself well and you know money won’t be safe in a savings account, you might need to go one step further. This isn’t for the faint of heart, but it’s a great way to save for your distant future. Just know that if you go down this path, you absolute should not ever take any money out of this saving method until you retire.
Now that I’ve properly warned you, you can save every month automatically by investing in your 401(k). Simply fill out your form to contribute a certain part of every paycheck to your 401(k) and the money will be taken out of every paycheck.
You should be investing for retirement anyway, but it’s a great way to start saving money every month. Some companies will even match your contributions up to a certain amount which will boost your savings even higher.
These three ways how to save money every month are a great way to get started saving if you’ve been having troubles getting started. The first two methods give you the most options and the third method is for those who have problems keeping their savings where they belong.
Regardless of which method you choose, don’t give into the temptation to raid your savings. If you do, it completely defeats the purpose of saving money every month.