Saving money is a lot easier said than done. It should feel like a fun, personal challenge rather than a chore.
Remember using a piggy bank as a kid and the excitement you felt when you deposited money into it to save for a new toy? As adults, the word "saving" may not sound fun, and spending our "adult money" may be more tempting. If you are a natural-born spender and need a nudge to help you save, try these six easy strategies.
Pay yourself first.
Choose your savings goal and automatically transfer a certain amount of money into your savings or goal savings account every month rather than spending all month long and only depositing remaining funds. Create a transfer schedule that makes sense for you, which might mean transferring money on the first day of the month or on your regular payday.
Treat savings like monthly bills.
This mental shift could make saving money easier. When you create your initial budget, allocate money towards savings. Envision your savings as a monthly bill, and pay yourself first. You automate many of your monthly bill payments, so why not this one, too?
Save raises and bonuses.
You received a financial boost for all your hard work! Now, resist the urge to go on a spending spree with your reward. What you do with this money matters. Transfer this money into your savings account or use it to help pay off your debt, which might be part of your saving goals. Investing in your savings goals has a long-term reward unlike making a one-time purchase, such as a new pair of boots.
Transfer your high-interest balances.
We referenced a debt payment goal earlier. Is your debt tied to a high-interest credit card with a large balance? If so, consider transferring that balance to a new credit card with a limited time 0% interest rate. This will let you pay the existing debt, save money and potentially pay off the card faster.
Use credit cards with rewards.
When you have to spend money, get rewarded by earning cash back or rewards. Our Visa Signature® Rewards credit card lets you choose between 1.5% cash back on all purchases or 1.5 points on all purchases. Our Visa Platinum® Rewards credit card offers 2% cash back on gas and groceries, as well as 1% cash back on all other purchases. Whatever card you choose, consider your lifestyle and what rewards you will use the most.
Overall, our best advice is to start small. Pick one strategy and try it out for a month or two to see if it works for you. Once you find your savings groove, saving money will become easier. Still have questions? Contact your free Members 1st Concierge. It is their job to help you navigate the details of spending, saving and planning. Best of all, they're here whenever you need them in the Members 1st mobile app and online banking.