Thursday, November 14, 2019

14 Ways to Save For Your Future

Saving is generally portrayed in a very negative light. You should indeed live in the moment and take in each day for what it is without worrying too much about the future. However, there are times when you must think about what the future holds for you. Sorry to burst your bubble, but such is the reality of life.

Saving is not difficult. It is challenging, yes, but it is very manageable. All you need are a few tips to get you on track. Once you get into the habit of saving, everything seems possible.

Here are our top 14 ways to help you save for your future.

Start Now

Saving money should not be a tentative plan that you are looking forward to in the future. You have to start now. The sooner you get into the habit, the better off you will be in the future. Saving does not mean that you have to make a savings plan. Start small to avoid getting overwhelmed.

If you make $500 per month, try to save $25. If you are making a $1500, try to save at least $50. Set a minimum amount to save and work your way up from there. Do not wait until the end of the month to start saving for that would never work because you will have nothing left by the end. Save first, spend later.

Set Clear Goals

When it comes to saving, the best way to get into the habit of it is to find the motivation to do so. Much like other aspects of life, you work towards a goal. Goals are what push us to get out of bed every day. If we had no goals, why would anyone of us even bother to go to work? Find the right motivation to save by setting realistic and clear goals, so you learn to set aside that extra amount from your paycheck.

If you are wondering what kind of goals you can set, well, there are no restrictions. You can save for emergencies, a splurge-worthy item, a vacation, or perhaps something much bigger like a house or your children's college fund. Find out where your priorities lie and start saving.

Set Timelines

Now that you have decided to start saving, why not do it properly? Do not just make a goal to save a certain amount. You must set a goal to save that said amount in a specific time frame. For instance, you decided that you wish to save $5000 for a car installment. However, whether you take five months to save that amount or five years to do so, is something that you can control. Set timelines with your savings so you can be efficient with it.

If you are wondering how you can boost savings regularly, we suggest you start small with the basics. Look for sales instead of buying things at full price. Save on unnecessary expenses like that cup of coffee you buy every day and instead make a cup yourself.

Once you have set foot into the basics, advance a little further and try to improve your credit card score for a lower interest rate. Auto loan rates are prone to fluctuation. To ensure that you are a strong candidate for a lower interest rate when taking any loan in the future, start saving.

Automate Your Savings

Automating your savings is the best way to ensure saving without having to worry about them. Set up a direct deposit that takes away a particular chunk of your pay to a savings account for emergency expenses and retirement. 

Set a retirement plan while you are at it and find a firm that allows automated savings. Additionally, a wise choice to save extra is to opt for cash-back credit cards. Save money every time you spend; what could be better than that?

Find the Right Savings Account

Your savings must be deposited in a place that compensates you well for it. The best savings accounts pay more than 2% APY. Additionally, they do not demand a high initial deposit or a monthly maintenance fee. The best way to save is to look into accounts that compound your interest annually rather than monthly for the best savings.

Start Budgeting and Tracking Purchases

Budgeting is an excellent way to handle your finances better. You must learn to allow a certain amount to something to restrict spending. Otherwise, you can go out and spend on anything that your heart desires. This is where control and tracking come in. Learn to track your spending and analyze them to understand whether they were essential purchases or not.

You must monitor where your money is going. If you notice an unnecessary purchase that you could have done without, return it if possible, otherwise cut that cost off your list for good. This is what we refer to as baby steps. 

Learn to choose between options. A $25 ride in a taxi or a $5 bus ticket? A $20 hoodie on sale or a $75 new collection design? Set your priorities and decide where you want to spend.

Manage Your Debt

Your debt can potentially ruin all of your future financial plans. Work to pay off your debt as quickly as you can so you can set aside money for your future. Work towards achieving financial security and independence by saving. Pay off your debt to free yourself from the chains of fiscal restriction.

Save Tax Refunds

Tax refunds are great. They feel like an early Christmas present. However, you can do yourself one better and save them. Transfer your tax refunds to your savings account. Trust us; you will not regret not spending that money on that stunning leather jacket or those killer boots.

Make it a Lifestyle

Saving is more than just a task; it is a mindset. In the consumer-oriented world we live in, it can be a challenge to save, especially considering nine out of ten text messages we receive in a day are pertaining to attractive sales and offers to urge us to spend more than we need to.

If you wish to save like a pro, you need to make saving your lifestyle. Learn the art of smart purchasing and be conscious of where you spend your money. Make lists, avoid impulse buys, and set a limit to your credit card that forbids you to make unnecessarily expensive purchases: learn to incorporate these tricks into your everyday life to nail the art of saving.

Learn to Negotiate

Negotiation is something that you get the hang of overtime. If you are a conscious saver, you must learn to ask for things the way you want them. Remember, there is no harm in asking. You never know, asking ends up in your favor. From negotiating with your neighborhood’s fruit vendor to asking your bank for a reduced fee or a reduced interest rate, negotiating works if you keep an excellent financial track record.

Steer Clear of Marketing Emails

Marketing emails are primarily responsible for luring in even the best amongst us into sales and offers. What is the best way to stop yourself from giving in to that temptation? Get rid of the source and unsubscribe from marketing emails. If you do not see them, you will not know of them, and thus, you will not feel tempted to hit that checkout button. Coupons and sales are great, but then constant reminders are not because, in the process of trying to save more, we end up spending more too. This year for spring-cleaning, clean up your email as well.

Get Money Saving Apps

Digitalized banking has made life so much easier because now everything is at your fingertips. To help boost savings, look into money-saving apps that focus on budgeting, cash-back offers, coupons, and automated savings. Find the one that supports and get into the groove of saving as you go.

Get Rid of Unnecessary Belongings

When it comes to saving, one saving method trumps everyone because we never even pay attention to it, and that is getting rid of unnecessary belongings by selling them. We all have a stack of items in our lives that we do not use. They lie around. Looking for extra cash? Start collecting all the unnecessary things lying around in your home and put them up for bids online. Everything is an asset if you think of it as one.

Learn to Say No

Refusing is not an easy thing to do. Saying no is hard, but the power of this two-letter word is undoubtedly effective. Learn to avoid spending by learning how to say no to things. Have three outings lined up; say no to two of them. It does sound bad, but you need to prioritize. Sign up for alerts so you can track your spending and your balance.

Parting Thoughts

The second you become an adult, you are thrown at with responsibilities. It is overwhelming, and it can take a severe toll on you when your expenses exceed your income. For this reason, it is crucial to start saving from early on. Get into the habit, so it no longer feels like a responsibility but rather a quintessential part of your life. Employ these fourteen tips and work towards a comfortable and carefree future now.

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