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The battle between spending money and saving money doesn’t have to be a very time-consuming struggle. You don’t have to spend hours reading books or listening to podcasts to learn the latest money saving habits. In fact, there are several simple steps you can take today that will help you build wealth.
When it comes to financial planning it doesn’t matter what your short-term or long-term goals are, you always want to make sure you have a solid savings and investing strategy. Here are seven surprisingly easy to learn money habits that can help you save.
1. Set up automatic transfers
Nationally recognized money-saving expert, author and on-air contributor andrea woroch It is recommended to use automatic transfers to increase your savings. To get started, set up a transfer for a small amount, like $10 per week or $25 per month. Set up automatic transfers to move those amounts to a separate account so the money is out of sight and out of mind.
“Setting up automatic deposits takes the work out of saving and keeps you consistent,” Woroch explained. “Once you start finding your balance, you’ll feel motivated to keep working toward your goal.”
As you get used to automating your savings and become more comfortable with the transfer amounts, you can gradually increase them. Since you’ll get used to living without that amount of money, saving it won’t seem like such a big sacrifice.
2. Organize your debts
When you’re balancing credit cards, student loans, car loans, and other debt payments, it’s easy to feel overwhelmed. Strategically paying off your loans can help reduce the interest you pay and save you money. You can start by simply settling your debts.
Make a list of due dates, minimum payments and interest rates. This will give you a clear picture of how much you owe and help you prioritize which debts to pay off first, whether it’s a personal loan, credit card balances or paying your bills every month. From there, you can prioritize paying off high-interest debt to save your money in the long run.
3. Pay in cash
Woroch advocates paying with cash, which can help you avoid making purchases you don’t need or don’t plan on making. Since you can’t spend more than the cash you have, paying cash can help keep your spending in check.
He said that paying in cash does not mean that you will have to miss out on the prize. With platforms like Fetch.com, you can take and submit photos of your receipts to earn points that you can put toward gift cards at popular retailers.
4. Plan ahead
Planning in advance can help you avoid making rushed purchases so you can save more money. Include every expense in your budget, no matter how small, to help you keep your spending on track.
For example, if you’re attending a sporting event or concert, plan in advance and find the best transportation options. Driving may not be the cheapest option. If you want to plan even further ahead, make sure you’re consistently contributing to your 401(k) plans or Individual Retirement Accounts (IRAs) for better retirement planning.
5. Identify unnecessary spending triggers
Spending a little time identifying your personal triggers can help you understand how to fight the triggers that lead to unnecessary purchases. “For example, if you can’t resist a sale, turn off push notifications in deal apps and unsubscribe from store newsletters,” Woroch said.
If you get bored of frequently browsing popular sites and apps while shopping, delete your payment information from those online accounts or social media sites. “This will require you to get your credit card and may be enough time to make you reconsider the purchase or prevent you from making the purchase at all,” she explained.
6. Create separate bank accounts for different purposes
Consider setting up separate bank accounts for specific purposes. For example, create a checking account for bills, another account for monthly expenses, and a separate savings account for short- or long-term savings goals. You can also put your checking into the savings account of your choice.
Woroch also highlighted the value of opening a high-yield online savings account. With a high-yield account, you can earn a higher amount of interest on your money, and your savings will grow faster.
7. Review your monthly bills
Sit down for a few minutes and review your monthly bills to identify additional ways to save. “Start by negotiating bills with existing service providers and ask about any new promotions or discounts for setting up e-billing,” suggests Woroch.
Cancel any subscriptions you no longer use, pause subscriptions, bundle your insurance policies and regularly review service rates with competitors to see if you can save money by switching your providers. Review your bills periodically to identify any areas where you’re overpaying or paying for services you don’t use, and you can save money throughout the year.
Caitlin Moorehead contributed reporting to this article.