GRAND RAPIDS, Mich (WOTV) – Whether you are saving for a major purchase or for your retirement, you will never reach your goals unless you make saving a priority.
A Little Adds Up
Many people may think they can never find the extra money to save for a new home, a dream vacation or even a much needed new car. They may think that small amounts will never really add up. But, when it comes to saving, little changes can add up to big savings on expenses.
Set Up Automatic Savings Withdrawal
Set up an automatic savings withdrawal. If you never see it, you won’t be as tempted to spend it. You can have a portion of your pay put into a separate savings account or even directly into a savings plan that converts to higher interest bearing account when you’ve reached certain levels. Remember, you deserve to pay yourself first out of every paycheck.
Start small to get into the routine of saving regularly. Have your direct deposit split between your checking and savings accounts.
Find Where Your Money Is Going
The biggest obstacle in saving is determining where your money is going. The first step in finding out how you use your money is to write down everything you spend for an entire month or longer. You may be surprised to find where small amounts of money slip through the cracks – the vending machine, the convenience store, lunches and dinner at fast food or restaurants, and more. Once you’ve discovered where your money leaks are, it’s easy to direct them to build your savings.
Use windfalls and raises to jump-start savings as well. Got a raise at work? Put that money toward savings. Funnel at least half of that newfound income into savings.