5 super simple steps to start saving money and buying what YOU want.
When I first started getting serious about my money, one of my biggest struggles was saving. Why tie up my money when I could be using it now for things I wanted. After all, isn't money worth more today than it is a year from now? I knew that saving money was important but I would get caught in the cycle of transferring money to my savings account and then realize I needed some of that to cover a bill and move some of it back into my checking account. It's a vicious cycle really.
I wasn't able to seriously start saving any money until I had a REASON. I wasn't able to actually save until I had a PLAN in place and set up a system to make that happen. Here are the 5 steps I followed and still follow to save money and KEEP the money in my savings account.
1. Figure out WHY and WHAT you want to save for.
What is your dream for this money? It is a down payment for your future home? A trip of a lifetime to Greece? Whatever it is, make sure it's uber important to you and something you will want to spend your hard-earned and HARD-SAVED money on in the future.
"Hey Target, could you like extend your sale?"
2. Open a savings account that is SEPARATE from your current checking account.
This will add an extra layer of effort. It's going to take more work to transfer money from a whole different bank account than it is now while all your money is in the same place. It also helps avoid compulsive spending, "Hey Target, could you like extend your massive sale for 3 more business days please?"
*Bonus tip: Open a high-interest savings account to get the most out of your money.
3. Nickname your new savings account to reflect what you're saving for.
By putting a name on your money in that account, you'll think twice before taking money out to buy something not named "Dream Car."
4. Determine how much money you will need and how much to contribute each month.
In this case, I find it easier to work backward. First, figure out how much you need to save. For example, you're saving for a trip you want to take next summer (about 9 months away) and figure it's going to cost about $2,000. So, take $2,000 and divide it by 9 months getting you $222 a month or $111 every paycheck (if you're paid bi-weekly).
5. Automate that SH*T.
Easily set up an automatic transfer from your checking into the savings for the amount you determined in the 4th step. This way you don't even have to think about it. I set my auto transfers to take place the day after payday so that the money is usually moved before I have the chance to see it or spend it.
& before you know it, you'll have easily and effortlessly reached your savings goal! I hope this helps as much as it has helped me.
P.S. My 1:1 Money Coaching Program is currently LIVE! Check it out HERE.
This is not advice. Returns are not guaranteed. Different investments result in different returns. Investing involves risk and possible loss of money. Speak to an investment/financial professional. Read my full disclaimer HERE.