How can you fit savings into your monthly budget? Long-range priorities can be hard to stick to when times are tight, whether you’re saving for a reliable car, retirement, or any goal that will take more than a few paychecks.
One technique for savings success is to pay yourself just as you pay your bills. With direct deposit from your paycheck or automated funds transfers to a savings account, you can get your money flowing directly into your goals. Having the money in a separate place also helps you keep your hands off it until you reach your goal –you don’t spend what you don’t see.
Need money for a new car before your current one kicks the bucket? $100 per week will bring your savings to more than $10,000 within two years, leaving you with a car you own free and clear.
Need to catch up on property taxes or other annual expenses? Divide the total payment by 12 and funnel that money each month to a separate account so you have the money in hand when the time comes to pay — you could be saving money by paying on time instead of pinching pennies and worrying about penalties.
Need to build a nest egg, emergency savings, or retirement fund? Set your goal and automate your savings so you don’t have to spend energy each month deciding to do it.