Money Tips: How to Automate Your Savings
A penny saved is a penny earned. The easiest way to grow wealth is to turn it into a habit. But how can you do that in a fast-paced world that is constantly changing? When you start with the easiest money tips, you can point yourself in the right direction. Some of the most powerful tips are also pretty easy. All big achievements start with a single step, so start out small and build new habits that can grow over time.
Money managers charge hundreds of dollars per hour to give out some of the advice you can get right here for free. Keep reading to discover several simple ways to save time, money, and reduce your frustration.
How to Save Money
Automating your finances is an easy and powerful way to save time and reduce stress while you grow your savings. Money is the source of many of our problems. The more we can automate our money management, the easier it will be to avoid mistakes and create powerful plans for the future. Which money tips are the most likely to help?
My first suggestion would be to automate deposits to savings accounts. When you plan out how much you can save, you can just tell your bank to automatically move it for you. Once it’s in savings, it’s easier for you to keep it there. Maximizing your tax refund can also help you quickly build your savings. You can have the full sum deposited directly into your savings account, and get a nice rush when you see the balance jump.
One of the easiest ways to save money is to be on the lookout for the best cashback credit cards. Gathering experience with money-saving apps is another way to build your net worth and improve your money managing skills.
Using a savings calculator can help you decide when to refinance your house or car, and when to switch up on your credit cards.
Create an individualized spending plan and update it often. Your needs are constantly changing, so keeping on top of your spending habits will help you maximize the growth of your wealth.
Use Automatic Payment Wisely
Your bank and most of your bills have an option for automatic payment. If you’re not already taking advantage of this option, you should take ten minutes right now and get it set up. Automating the process of paying your bills is the perfect pairing with automating your savings. When your bills take care of themselves, your payment history looks better, you avoid late fees, and you build a better credit rating. Some banks and businesses will even give you a lower interest rate or cut your price when you sign up for automatic payments. Like Ben Franklin said, a penny saved is a penny earned. Every late fee you avoid is money that gets to stay in your pocket.
On the other hand, you may have services you are paying for but not using. Many people have subscription memberships to streaming sites, gyms, and other services that they’re not using enough. Review your subscriptions and cancel those you don’t use. Also, consider the hidden costs. If you have three streaming services and you use them all, how much time are you spending passively watching a screen? Maybe you can swap out one or more of those TV services for a gym membership instead. Or buy some sports equipment and join a competitive league! Playing soccer, geocaching, jogging, and many other outdoor activities are a great way to keep you from getting bored. Instead of talking about what happened on the latest TV show, you can show off the ripped abs you got by spending your free time outside.
Practice Money Tips Until They are Second Nature
The best way to ensure a happy future is to build good habits. As you practice and become more skilled, you will be surprised at how much money you can save and how easy it is. You should start small and build up over time.
Most everyone uses direct deposit for their paychecks. Splitting direct deposits into different accounts is a simple and easy way to train yourself to be better with money. Having separate accounts for your mortgage payment, monthly bills, and “fun” money makes it easier to stay on top of things. You can even send some of this money directly to retirement savings. Most employers offer automatic withdrawals to a 401k or other long-term savings vehicle. They may also offer medical, education, and other types of savings programs. If your job doesn’t have this option, you can find a bank that does.
Having a large savings account will also save you money in other ways. Big-ticket items like new cars and appliances are often purchased with loans, credit cards, or installment plans. A habit of saving money will help you build up a nest egg that can defray the interest payments you have to make. In some cases, you will be able to avoid interest charges altogether! Paying cash for a new car is a satisfying feeling, and a zero balance on a credit card is empowering.
When you can pay cash for new items, the money you save by not paying interest can be rolled right back into savings. This will accelerate the growth of your savings and help you achieve financial independence sooner rather than later.
Start Now With These Money Saving Tips for the Best Results
Automate bill payments to simplify your life, avoid late fees, and minimize interest payments. If your bills are paid automatically every month, you’ll save time, hassle, and money. Some businesses will even give you a discount if you use automatic payment! And over time, you’ll get lower interest rates and build a better credit score. Review your automatic payments on a regular basis in order to get the most out of the feature. As you learn the ins and outs of automated banking, savings, and bill paying, you will feel more in control of your finances. Learn to use these powers responsibly, and you’ll build a better future for yourself, your family, and all the people you love.
When you get a discount, avoid a fee, or pay for something with cash instead of installments, it’s identical to finding free money. Your savings can be invested in passive income ideas that can generate even more funds. It takes money to make money, and the more you have, the easier it gets.
I recommend you get started today by setting up an automatic savings deposit. Then look into other ways to streamline your finances. The sooner you start, the faster your money can grow.
*This post may contain affiliate links to the products and services that we talk about.