7 Simple Saving Habits To Build Your Wealth
Written by
Paige Cerulli
Edited by
Jenna Klaverweiden
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The fight between spending money and saving money doesn’t have to be a huge time-consuming struggle. You don’t have to spend hours reading books or listening to podcasts to learn the newest money-saving habits. In fact, there are many simple moves you can make today that will help you build wealth.
No matter what your short-term or long-term goals are when it comes to financial planning, you always want to make sure you have a solid savings and investment strategy in place. Here are seven surprisingly easy-to-learn money habits that can help you save.
Set Up Automatic Transfers
Nationally recognized money-saving expert, writer and on-air contributor Andrea Woroch recommended using automated transfers to build up your savings. To start, set up transfers for small amounts, like $10 per week or $25 per month. Set automatic transfers to move those amounts into a separate account so that money is out of sight and out of mind.
“Setting up automatic deposits takes the work out of saving and keeps you consistent,” Woroch explained. “Once you start seeing your balance building, you will feel motivated to keep working toward your goal.”
As you get used to automating your savings and become more comfortable with the transfer amounts, you can gradually increase them. Since you’ll get used to living without that amount of money, saving it won’t feel like such a huge sacrifice.
Organize Your Debts
When you’re balancing credit card, student loan, car loan and other debt payments, it’s easy to get overwhelmed. Strategically paying off your debts can help minimize the interest you pay and save you money. You can start simply by organizing your debts.
Create a list of due dates, minimum payments and interest rates. This will give you a clear picture of what you owe and help you prioritize which debt to pay off first, whether it’s a personal loan, credit card balance or just paying your bills each month. From there, you can prioritize paying off high-interest debt to save you money in the long run.
Pay With Cash
Woroch advocated paying with cash, which can help you avoid making purchases you don’t need or didn’t plan to make. Since you can’t spend more cash than you have with you, cash payments can help keep your spending in check.
She explained that paying with cash doesn’t mean that you have to miss out on rewards. With platforms like Fetch.com, you can take and submit photos of your receipts to earn points that you can put toward gift cards from popular retailers.
Plan Ahead
Planning ahead can help avoid making impulse purchases so you can save more money. Include every expense in your budget, no matter how small, to help you stay on track with your spending.
For example, if you’re attending a sporting event or concert, plan ahead and explore the best transportation options. Driving might not be the cheapest choice. If you want to plan even further ahead, make sure you are consistently contributing to your 401(k) plans or individual retirement accounts (IRAs) for a better retirement plan.
Identify Unnecessary Spending Triggers
Spending a little time identifying your personal triggers that lead to unnecessary purchases can help you understand how to fight those triggers. “For example, if you can’t resist a sale, turn off push notifications in deal apps and unsubscribe from store newsletters,” Woroch said.
If you often shop when you’re bored by browsing popular sites and apps, delete your payment information from those online accounts or social media sites. “This will require you to get your credit card and may be enough time to make you rethink the purchase or simply deter you from buying,” she explained.
Create Separate Bank Accounts for Different Purposes
Consider setting up different bank accounts for specific purposes. For example, create a checking account for bills, another account for monthly spending, and a separate savings account for short- or long-term savings goals. You can even put your checking into the savings account of your choice.
Woroch highlighted the value of opening a high-yield online savings account as well. With a high-yield account, you can earn higher amounts of interest on your money, and your savings will grow faster.
Review Your Monthly Bills
Take a few minutes to sit down and review your monthly bills to identify additional ways to save. “Begin by negotiating bills with current service providers and asking about any new promotions you may qualify for or discounts for setting up e-billing,” Woroch recommended.
Cancel any subscriptions that you don’t use, pause memberships, bundle your insurance policies and regularly review service rates with competitors to see if you could save money by switching your providers. Periodically review your bills to identify any areas where you’re overpaying or paying for services you don’t use, and you could save money throughout the year.
Caitlyn Moorhead contributed to the reporting for this article.
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