Follow these tips on how to decrease your spending and increase your savings just by using common sense. It just takes a few adjustments and a little determination, and you'll be saving in no time!
We all say we want to save, but sometimes we have a hard time sticking to a plan. Here are some simple strategies for saving, simply by using common sense. Everybody has to start somewhere, right?
Manage Your Mischief
We all have a “guilty pleasure” that can easily add up to mind-blowing costs. If you can stop one of these altogether or even just simply cut back, you will be shocked at the savings opportunities. Start by making a list of your most expensive habits. Some examples include (but are not limited to):
The list goes on and on. Now the question is, what can you go without?
Have you ever checked your bank account after a weekend and wondered “where did all my money go”?! This then prompts you to frantically search through your transaction history trying to pinpoint where it all went wrong. Instead, try this. Just say a big fat NO to ANY spending for a day/weekend/week whichever you can handle. Of course this doesn’t include the necessary expenses such as bills, gas, groceries, etc. But you can try a few things:
Have a relaxing weekend in.
Say no to unnecessary restaurant spending and learn a new recipe at home!
Skip that daily morning “polar pop” or coffee.
Bring your lunch to work.
Go on a hike or a walk in the park, get some fresh air and get out without spending!
Out of Sight Out of Mind
A split deposit is a great way to save a portion of your paycheck each pay period. In this day and age, almost every employer is using direct deposit for their payroll. The way split deposit works is basically that you ask your employer to deposit a certain percentage of your check each pay period into your savings account, and the remaining goes into your checking. This can be whatever amount is reasonable for your income, and remember, every little bit adds up! Most of us pay our bills and do our daily spending from our checking account, so you only spend what you see there. Another tip to develop this savings habit is to unlink your savings and checking account from your online banking. By unlinking the two accounts, you will erase the option to conveniently make transfers from your savings to your checking. This makes you less likely to spend money from your savings account.
Set a Savings Goal
Decide on a savings goal. What are you working toward? Having a goal in place makes it easier to save, because you are actually getting something out of your savings or working towards an end result. Go on that trip of a lifetime, buy your first home, purchase your dream car, or pay off that debt! All of these are great goals to have for your savings plan. And don’t forget to WRITE IT DOWN! After all, an unwritten goal is merely a wish.
Caffeinate at Home
It’s difficult getting up early five days a week, and if you’re anything like me, you’re always running late with little to no sleep. You just HAVE to have that extra little boost to get you through the day, I get it. It’s so easy to justify that $5 a day coffee shop charge, but just imagine what amounts to over a year. $5 a day x 365 days = $1825.00 a year! This could be your yearly savings just from saying NO to that daily coffee. Maybe waking up a little earlier to make that cup of Folger’s at home doesn’t sound too shabby after all…
Once you develop habits that fit your lifestyle, saving becomes second nature. Seeing your account grow and reaching your goals is a great feeling.
First Bank offers a variety of savings options, including Christmas Club and kid's savings.