5 Ways to Save Money

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5 Ways to Save Money

talessi@ariesfoundation.org

Ways to help you save more money

Sometimes the hardest thing about saving money is just getting started. These are a couple of our favorite ways to save money. Hopefully you will be able to try a couple, or all of these steps to help you develop a simple and realistic strategy, so you can plan to save for any of your financial goals...whatever they may be!

RECORD YOUR EXPENSES

There's an app for that! Yes, but our belief is that it isn't as effective as actually putting pen to paper to write exactly what you spend. Take a week. Write it down every time you spend a dime. Make sure you stay true and be accurate as it will help you get a handle on where, and what you are spending your money on. This is not an easy exercise, but one that yields great results.

TIP: If you are using an app or software tool like Mint, then just make sure that it is tracking all of your expenses or a way for you to include anytime you use or pay with cash as well.

BUDGET FOR SAVING

The target is to be saving between 10% - 15% of your of your income. Remember these funds should be allocated to different "buckets":

Bucket #1 - Emergency Reserves

Bucket #2 - Opportunity Funding

Bucket #3 - Long Term Goals

You should have at least 6 - 8 weeks of living expenses in the bank. If you don't then most of your savings should be allocated to filling up Bucket #1. Bucket #2 is saving for a major purchase (car, home, college) or to pay down a debt. Bucket #3 is retirement. While funding into Bucket #3 is important, it should not take away from funding Buckets 1 & 2 first. Ocne they are full then additions can go to Bucket #3.

REDUCE YOUR SPENDING

We always say don't sweat the nickels & dimes, don't get caught up in trying to trim down every single thing that you spend money on. Instead, look at the larger line items in your budget, those that are not "hard" dollars items like rent or mortgage, utilities, or car insurance. Review your "soft" or recreational spending and go through any memberships, or subscriptions, or items that while you may enjoy them, you could probably do without for the time-being.

TREAT YOURSELF LIKE A BILL

You're great at paying your bills every month, but not so great at making sure that money goes into your bank accounts as well. You need to automate your savings. Participating in a retirement account through work is one way of diong this, but it also doesn't add anything to our bank statement. If you don't have direct deposit - Get It! - then go to you rbank and have a portion set aside to your savings (Bucket #1)

SET SMALLER GOALS

Maybe it's just getting a new phone or taking a vacation, but setting up a small, short-term goal can have a big impact on your morale and be a big boost to helping you stay on track. If you struggle to save then this should be something low to start; add $200 to my savings in the next 90 days, or maybe that new outfit or shoes, or something that tells your brain, "I did it!" and you can do it again. And again. And again.

Got Questions? Ask Us. We Can Help WIth That!

Learning to play nice with your money is not an easy thing to do, especially if you have been pulling in oppostie directions for many years. Our goal is to help everyone have a beter relationship with their money.

Visit www.ariesfoundation.org to learn more.

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