Being a Saver Takes Discipline
Saving money. It sounds so easy, but many of us struggle to put aside a little extra each month.
Fortunately, there are ways we can motivate ourselves to save money for emergencies or long-term goals like buying a home.
One great way to save money is to make it a personal challenge, according to John Heath, directing attorney for Lexington Law.
“A savings challenge is a great way to ensure you’re not only stashing money away, but doing so on a regular basis,” Heath says. “Creating a habit of saving money is the ultimate takeaway, and the simplest way to ensure a solid financial future for your family.”
One fun challenge is the 52 Week Savings Challenge. The challenge is simple: start by saving $1 the first week, $2 the second week, and eventually $52 in the final week of the challenge. If you save each week throughout the year, you will be $1,378 richer. Set weekly reminders to keep you on track and save more, if you can, to come out an even bigger winner by the end of the year.
Another easy plan is the $5 Challenge. Whenever a $5 bill comes your way, put it in your savings jar or envelope. That’s it! By the end of the year, especially if you use a lot of cash, you’ll be surprised how much you’ve collected with this simple savings hack.
Another key to building a savings account is to make the money hard to access. Heath says to ditch the money jar or envelope and open a savings account. Then pay yourself every month by including a line for savings in your monthly budget and have that money automatically deposited into your savings account.
“Whatever you have budgeted to save every month needs to be moved out of your checking account into a savings account as soon as your paycheck hits your checking account,” says Kyle Brown, Accounts and Payroll Manager at Duffey Realty. “By doing this, it helps to build discipline in your financial life. It is so easy to spend money, especially cash, on frivolous things.”
It takes discipline to leave the money in the bank, but the results are worth it.
“With today’s technology, it is easy to transfer money from one account to another with a few swipes of a smartphone. However, before you make the transfer, ask yourself if it’s really worth wrecking your budget for temporary satisfaction.”