Even when you know the basics of budgeting, setting aside money and saving it can feel overwhelming when you don’t have a plan. Here’s what you need to know to start saving more.
There are many factors within our lives that drive us to want to save more money. Whether you’re looking to purchase your first home, plan your dream vacation or are getting ready to start a family, building your savings is a great way to move more quickly toward your goals. If you’re looking to save more in the new year, these steps will help you hit the ground running.
Set new, achievable goals
Consider the life goals you might have and how quickly you’d like to reach them. Maybe it’s something on a timeline like a spring break vacation, but it might also be something that you’re looking forward to annually, like building wealth. Make sure the goals you set are achievable and take variables like upcoming expenses, bills and debt payoff into consideration. If your goals are reasonable, adding money to your savings plans won’t feel as stressful.
Adjust your monthly budget
Take a look at your spending habits throughout the month and see where you can realistically cut back. Make tangible spending limits that are easy to stick to: the simpler the budget is, the more likely you are to attain it. Be kind to yourself: if you’d like a morning coffee, buy it and be mindful tomorrow of the decisions you made yesterday. A little saving can go a long way. You can even reassess your monthly bills to see if it’s possible to save money within available programs. Look for safe driving discounts from your car insurer, or a television package that might be more affordable.
Reading your entire bank statement can be difficult when there’s so much to comb through. And calculating a realistic budget in your mind is a lot trickier than seeing it daily. Explore your bank’s mobile app to see what kind of savings features it offers. Some banks’ mobile apps can help you get an idea of what you need to put into savings to hit your goal. For example, in the U.S. Bank Mobile App, there’s a handy budgeting tool that you can use to help with your saving. Simply select how much you want to save and by what date, and the app will calculate a monthly savings goal for you. If you need to cut back or you want to increase your savings goals further, you can adjust your goal any time within the app. Read more about our mobile app and budget tool.
Work with a financial professional
When you’re trying to save a large amount, say, for retirement, college tuition or a wedding, consider working with a financial professional. They can help you create a financial plan that gives you clear direction on how to work toward your financial goals. Building wealth takes time and having someone to guide you can make your life easier.
Learn how to save more by tracking your spending patterns.