Start Saving Today

Make Savings Automatic

Pay yourself first. You’ll be less tempted to spend money if you don’t see it. Think of savings as a monthly “expense,” similar to rent or a car loan.

Make it electronic. Most banks allow you to set up multiple accounts at no cost. Earmark one for savings and set up an electronic transfer into that account for the same day your paycheck hits your checking account.

Invest. Arrange monthly transfers of cash from a bank account to a mutual fund or stock dividend reinvestment plan (DRIP).

Establish savings goals. Name your savings accounts for the goals you’d like to reach. You’ll be more likely to let the money alone if you know it’s for a big purchase or college fund. 

Forgo Unnecessary Expenses

• Making mini-cuts: Buy a medium coffee instead of a large, or try similar downsizing in other ways you spend. A daily 50-cent savings equals about $15 per month or $180 a year.
• Packing your lunch: Cut lunch expenses in half by making your own. Save the $5 to $10 you would have spent to buy a mid-day meal and you’ll save $650 to $1,300 a year, less your grocery bill. Find out how much you could save.
• Watching power usage: Shutting down your computer and monitor overnight can save $88 a year or more than $7 a month, the Department of Energy says. Save $10 to $30 more a year by using your computer’s sleep mode instead of screen savers. Estimate your savings and put it in your savings account. For more energy saving tips, click here.
• Curbing impulse buys at the supermarket.
• Avoiding unnecessary bank fees, such as overdraft charges, which can be expensive.
• Paying cash instead of using credit, which carries potential late fees and interest.
• Renting, borrowing from a friend, or buying below what you can afford.