Do you need to save more money? It is true, you can learn how to be a better saver in 2021 and build up your savings.
How to Become a Better Saver
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How Can I Improve My Savings?
If you are ready to start saving but are having a difficult time making it work, improving your savings is key. You can improve your savings by starting small and building as you go. Make sure to find high yield savings account to help grow your money.
Which Savings Strategy Is Most Effective?
The best, most effective savings strategy is the one that works for you. You can use jars, banks, or sinking funds, but if you do not stick with your savings strategy, it will not pay off.
You can try a savings challenge and build an emergency fund first. Then use sinking funds for other savings goals such a vacation fund or wedding fund.
How Can I Save Money Fast?
The best way to save money fast is to complete a savings challenge. There are so many savings challenges out there, but if you want to try a penny challenge or learn how to save $1000 in three months, click the highlighted post and get a free printable.
Tips on How to Become a Better Saver
#1 Use a Service to Keep Your Finances in the Oder
Personal Capital is a great service that will help you keep your finances in order. You can monitor your savings and investments all under one roof. Not to mention, Personal Capital can help y ou keep track of your money goals. Although if using Personal Capital for investing there are fees, there is a robust free version where you can link your credit cards and bank to keep everything in order.
Another great app to keep track of spending and savings goals is Digit.
Use digit to keep track of all of your funds in one spot. Digit will help you stay on budget and reach your financial goals. Try it free and learn how to save at the touch of a finger.
#2 Start Small but Start Now
Your money journey begins now. If you want to become a better saver, you have to start somewhere. If you want to save, but do not have a lot of extra money you can start by saving just $5-10 per week. You will see how these small savings add up.
Another great way to start small is to check out the Acorns app. Acorns take your credit card purchases and round up to the nearest dollar. It then invests your money, so you are earning money on your spare change.
I don’t spend that much, so I didn’t think Acorns would be worth it until found out you can use a multiplier instead of only depositing $0.25 each month. You can multiply that by 10 and make it $2.50. You can also deposit money into your app if you choose. It is an easy way to start investing if you have been scared to invest thus far.
Check it out. You will get a $10 credit after your first deposit, so it is like getting it for free for 10 months if you choose the lowest plan.
#3 Find a High Yield Account
If you are going to be a better saver, why not earn money on your accounts? The best way to earn quickly is to find a high-yield savings account. Here are my top three high yield savings accounts:
Citi bank
Ally
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#4 Track Spending
Regardless of how much you save, you must be “in the know” about how much you spend. Being frivolous is counterproductive. I recommend writing down every purchase you make for two weeks. After you have your data, you can complete a budget that will help you live below your means and save more.
If you want to reach your savings goal, it is best to track your goal. You can check out my pretty savings tracker by clicking here.
#5 Trim Your Budget
If you want to learn to save more, you can start by trimming your budget. Find unneccary things you can cut from your budget and put that money away in your savings account.
Perhaps you have a subscription you don’t really use or you belong to a gym that you haven’t stepped foot in for over a year. Now is the time to get rid of these extra expenses so you can put that money into savings.
You can cut out morning coffees and make them at home or cancel magazine subscriptions and opt for a library card.
Nonetheless, if you have a hard time cutting bills, you can try a service such as Trim. Trim helps find savings for you and helps you save money.
Why not try out the popular money-saving app, Trim. Trim will help you find areas where you can save.
#6 Create a Budget Plan
Once you know how much you spend, you can easily create a budget that will work for you. Set up some simple budget categories such as housing, utilities, transportation, child care, groceries, and clothing. Once you allocate money to each category, take a look at what you have left. If you don’t have much to save, you can try living frugally to help you cut back and save more.
Great Ways to Cut Back and Save
- Meal Plan
- Coupon
- Use Rebate Apps
- Find Free Activities
- Pay with Cash
#7 Make it Automatic
Make it automatic. Most employers will allow you to use a certain bank for direct deposit. Take advantage of this and set up sinking find accounts with your bank. Have money put in your accounts on or after payday. Make sure you have enough to cover your bills.
If your employer offers a 401k or 403b plan, have the money taken out and set aside for retirement. If not, you can invest in a Roth IRA through companies like Fidelity (I use) or Betterment. Make sure to actually invest your money if you choose this option.
By making it automatic, you are already saving before you even see your paycheck. In this way, you will not feel guilty about purchases made later since you have already put money away.
#8 Financial Discipline
If you want to become a better saver, take steps to create financial discipline in your life. If you can use willpower to stop spending, you can learn to live within your means and build your savings account.
Financial discipline:
- saving more money
- no impulse buys
- save money instead of spending
- no credit cards
Using financial discipline in your life will help turn your finances around.
Related Money-Saving Posts:
How to Overcome Budgeting Challenges
How to Stop Struggling With Money
#9 Sinking Funds
Sinking funds, accounts set aside for a specific purpose, will help you become a better saver. Research shows setting aside money in specific accounts tricks the brain into saving because a second decision has to be made in order to take the money out of the account once it is set aside. You can literally trick yourself into saving more.
Ideas for sinking funds:
- wedding fund
- vacation fund
- big purchase such as a computer, television, or car
- down payment fund
#10 Live Below Your Means
One of the most important aspects of saving money is learning to live below your means. Instead of trying to keep up with the Joneses by using credit cards, learn to cut things from your budget you really don’t need. Put the money you save away in your savings account.
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How to Become a Better Saver Final Thoughts…
If you want to become a better saver, it is possible. Learn to take the steps mentioned above and you will build savings and get out of debt. You can start using your money to build wealth and prepare for an emergency.
