Whether you’re saving for a wedding, dreaming of your next vacation, or want to go back to school, you can start setting aside money now. Consider these three options to help you build your savings.
- Filter direct deposits. If your employer has direct deposit set up, consider opening a savings account and filtering a portion of your paychecks into it. Moving just 5% of your paycheck into the account will build your savings very quickly. You’ll never see that money in your checking account, so you won’t be tempted to use it for other purchases.
- Give up something in the short term. Look for a monthly expense that you can live without and use those funds to save for your upcoming purchase. For example, if you can save $50 by canceling a yoga studio membership, you can have $1,000 saved by the end of the year. Temporarily giving up something you love to do can help motivate you even more to reach your goal.
- Use budget-tracking tools. Tools like Mint can help you organize your spending. You can allocate funds for different categories and keep track of where you’re spending more than you need to. For instance, you can set a limit for eating out in your “Restaurants” category and put the extra money towards your “Vacation” goal. Check back with the app every week to make sure you’re still on track.
Saving for big expenses can be intimidating. But with a few changes, you can work steadily towards your goal.
Source: Bank of America