5 Essential Ways To Save BIG!
Whether you want to go on a nice vacation, buy a new car, pay off debt, or build your dream house we all have something we need to be saving for. So here are 5 ways to save that will help you achieve your goals faster than ever before.
· Know What You Are Saving For
It could be something as small as a new pair of shoes, or as big as buying your dream home, but knowing why you are saving gives you an actual reason to keep making the sacrifices necessary to keep at it when things start getting difficult.
· Determine Wants vs Needs
A question we all have to ask ourselves at some point is, what are the things we really need in our life and what is just extra. When you figure out the things you need in your life it gives you the ability to prioritize your spending in a way to ensure you are never missing out on essentials. Any time you are making a purchase you can ask yourself if the item is a want or a need. For example, we all need to eat but do we need the name brand? For many having a vehicle is a need, but do you need to buy a new vehicle every two years?
· Make A Budget
It has been said that if you fail to plan you plan to fail. A budget is your plan, everything you spend money on is apart of your budget. Here is a basic outline.
Monthly Income – fixed expenses – variable expenses = Disposable Income
Fixed expenses: The bills that are the same amount every month like rent/mortgage, savings, phone bill, car payment, and groceries ( yes surprising, but you can decide ahead of time how much to spend on groceries)
Variable expenses: The things that change based on the amount used like gas, utilities, eating out, hobbies.
· Pay Yourself First
More often than not when our pay check comes in it immediately goes to 15 other places, none of which are ourselves. Even a little saved can start to add up, and you will thank yourself later when you need it. (Need proof? Start the 52 Week Savings Challenge with $1 today and at the end of 1 year you will have $1,378.00!)
· Check Your Account
Every dollar counts, and when every dollar counts you need to know when that “free trial” you signed up for 3 months ago that you forgot about hits your account. Try checking your account daily through online or mobile banking. If that is to much, make sure to check your account at least once a week to make sure that nothing is coming out that shouldn’t and to keep track of what you spend. (Sign up below to get a daily reminder text message from the Credit Union to check your balance.)
Saving for your future does not have to be complicated. Making small changes today can lead to big results in the near future!