Some people believe that saving money is hard, tiresome, difficult and downright unachievable. But that is absolutely not true – it is possible and it can be done.
According to The U.S. Bureau of Economic Analysis, the US personal saving rate is around 7%, this means that most Americans are saving this percentage after paying for their expenses and paying taxes. Saving money is a critical part of building wealth, along with exploring ways to increase your income and should not be taken lightly.
However, with over 50% of Americans living paycheck to paycheck, saving money can be very hard to achieve as people are strained with the rising cost of living and stagnant paychecks. But it’s not impossible to save and there is a trick that you can use to save money and be committed to it.
What is the trick?
It’s automating your savings!
Automating your savings is one of the best and quickest ways to save money and here’s why:
- When you automate your savings, you do not have to worry about allocating money towards a savings account as it is done on autpilot
- When you automate your savings, you can set it and forget it and watch your money grow
- Automating your savings allows you to become accustomed to the habit of saving money and soon you will find that you want to do more of it and that’s where saving money can become addictive
- Saving money on an automated schedule will give you the chance to grow interest on your savings especially in an investment account
You may be wondering, but I am already living paycheck to paycheck, how will I be able to save money even if I use the automated method? The answer to this question is to look at your expenses, start a budget and then look at ways you can save money.
If you find there are unnecessary expenses when you track your spending, then cut back on those expenses and allocate that cash to your new automated savings account.
How do you automate your savings?
- Start by deciding how much you are willing to save and how much you can actually afford to save.
- Research saving accounts at your local financial institutions and choose the best savings account with the lowest (or no fees!) and a reasonable interest rate.
- Open a savings account and then have your bank transfer the money from your checking account to this savings account.
- Choose a time frame that works for you for how often you want your savings to be deducted from your checking account to your savings account – it can either be on a bi-weekly basis or a monthly basis. Decide on a schedule that works for you to ensure that this cash is automatically sent to the savings account.
- Always ensure that there’s cash available in the checking account to go towards the savings account.
- Watch your money grow and start building wealth!
This might seem like a chore or you might think it’s impossible. But here’s my challenge to you – just give it a try. Maybe try it for a few months and see what happens. Test the water and see if this would work for you. But you will never know unless you try.
It’s been my secret weapon to save money and I swear by it – I hope you are able to use this method and save some serious money and put a plan in place for YOUR financial future.
If you like these savings tips and would like more money tips, join my newsletter and get more ideas on how to build wealth.
Tell me – what other saving methods do you use?
xoxo
Leave a Reply