Does your money seem to fly out of your hands as quickly as it arrives? You are not alone. Most of us feel that way at some point in our lives.
There is no magic solution to this problem; it just requires a different mindset and habits. To help you along the way, here are ten tips to assist you in growing your personal savings.
1. Set Goals – What are you saving for? Building an emergency fund, saving for down payment on a house, or reversing a trend of increasing debt? Set your goals and make them reasonable – unrealistic goals will just discourage you.
2. Make a Plan – Outline a plan to meet your goals, in terms of saving a percentage of your savings goal by a specific time. If you do not put a time limit to the plan, your goals will always get pushed back to the future.
3. Define Needs vs. Wants – This can be difficult but is necessary. If you cannot pay your bills, do you really need a deluxe cable TV package? Down deep, you know which is which.
4. Create Budgets and Stick to Them – Assess your income and expenses realistically, and make budgets. If you make weekly or monthly budgets, do not forget about large annual expenses, such as tax bills or insurance payments. Leave room for an occasional treat as you can afford it to avoid getting discouraged. Read our guide on How to Create a Budget for a more thorough look at this.
5. Create a Second Account – It may help to create a second account that serves as your "piggy bank," only to be touched in case of emergency. With direct deposit, you may be able to have a portion of your paycheck sent to this account. After some time, you may "forget" about it with respect to the daily bills and the temptation to overspend will be reduced.