The plans in our household are to eliminate any high interest bearing debt, and to also increase our savings as fast as we can. The main reason for this is because we want to retire comfortable, but the short-term reason for this is because we would like to buy a new house in the middle to the end of 2014.
We want to save enough for a large down payment on the new house. We are hoping to save somewhere around 30% to 40% of the total value, and we would also like to have enough in our emergency fund to cover anything that might happen as we move into our new and most likely much more expensive new house.
We would also like to save enough just in case the house that we currently have does not sell as quick as we would hope.
Most people want to save money. Whether you want a new house like we do, want to retire early, quit your job and begin a job that you love more, and so on, saving money is on most people’s minds.
Also, you might be tired of living paycheck to paycheck, and you want to have savings in each pay period so that you can live more comfortably. What you thought was impossible, might actually be possible.
We have quite the large goal for savings, and there are many things that we are doing and hope to do in order to reach our high goal.
1. Pay Yourself First
This is my number one tip. When you get paid, designate an amount that is realistic towards your savings. Then transfer the money to your designated savings account and make sure to not touch it. You can’t spend what you already transferred! You’ll have less in your checking account and will think more carefully about what you buy.
My friend does this well and at her bank she is only allowed a certain number of transactions for money she can take OUT of her savings account. This way, if she really needs the money out of her savings, then she would have to go to the bank herself and explain her situation. This will make you think twice before you start taking money out of your savings.
2. Save The Leftovers
If you have $100 leftover from your budget (such as you spent less money on food than you thought you would), then save this money! So many people just spend this leftover money instead of throwing it into their savings.
I’m sure there is at least some decluttering that can be done in your house. See what you can sell. I recently went through my closet and sold over $1,000 worth of things. My closet was packed full of things that I did not need, and I didn’t even miss any of it once it was gone.
4. Make Extra Income
There are many side jobs out there. Do you have a couple of hours available each day or maybe weekends free? If you do, then maybe some sort of side job should be in the works for you. If you are truly struggling or you really need to save, then a side job can be very helpful!
5. Only Buy What You Need
This is where your personal value and opinion comes into place, but really think about what you need and what you do not need. Try not to pay extra for convenience. I am guilty of paying things over the phone instead of driving a mile down the road or paying it by mail just because I am lazy.
However, most of the time, places have a fee for paying bills over the phone. Sometimes it can be anywhere from $2 to $10 per transaction. These little transactions then add up to a lot of money!
6. Limit your Spending on “Wants”
I am a spendy spender. If I go to Target or the mall, then I WILL spend. I try and think about how long I had to work in order to earn the money for the item, and this usually tempts me to not buy it. I also try and avoid the mall and Target unless I TRULY need to go.
What are you doing to increase your savings?