It’s not you, all of us struggle to save enough. And it’s not just for retirement, we need money for other purposes, as well.
Ask someone, and he/she will tell you what works for them. Someone else will tell you a different story.
And so we’ve asked around and compiled this list of different techniques that helped some of us save a little extra every month. Naturally, some ways are better than others. You be the judge…
1. Separate Your Savings
Many folks I know have found that a few different accounts work better than one. So they have one account for their retirement savings, one that acts as an emergency fund, one for their kids’ college tuitions, and one for their yearly goals (like visiting Hawaii on the New Year’s Eve). And they prioritize accordingly.
For instance, the first $300 earned goes to the retirement account, then $100 goes to an emergency fund, $200 for their kids’ education and the rest to their yearly goal’s account. If some money is left by the end of the year, they move it to their investment account, which will also be used towards retirement.
By taking this route, you will avoid temptations to use money from a single account where all your savings are. So the important thing is to set the goals first, and act afterwards.
Naturally, these savings are made once you’ve paid all of your bills.
Also read: 5 Major Mistakes to Avoid When Starting to Save Money
2. Pay Yourself Regularly
Whether you are working for a company or as a freelancer, you should find money to pay yourself. After all the bills are paid and some money has been put on the side, there should be something left for your own needs. This is especially important if don’t have a fixed salary — make sure to define one for yourself.
If you can’t save enough — it’s time to rethink your savings goals. What you want is a balance between the money you need every month and the money you can save on a regular basis.
On the other hand, if you end up making more money, that salary you previously defined is the only cash you can get — everything else goes to your savings or investment account. This will also help you establish the habit of saving money.
3. Try a Microsavings Service
These sort of services have been popping up like mushrooms, allowing just about everyone to put something on the side. Some of these services let you save as little as $1 per day, and most do that automatically, taking that dollar (or more) from your credit card on a regular basis (daily, weekly or monthly).
The best part is that microsavings services usually offer mobile apps that allow you to keep track of your finances while on the go. Some the services to try include:
- Digit – This app is made to automate your savings. Free to download — and compatible with Apple Watch — it offers an effortless way to save money without thinking about it. Digit does its magic by checking your spending habits and saves a few dollars from your checking account if you can afford it. This way, even those who are not used to saving will start doing so.
- Acorns – another investment tool that makes stock market closer to the regular folks, like you and me. It allows you to start with just spare change, rounding up all (or some of) your transactions. So when you pay $2.60 for a coffee with your credit or debit card, Acorns — when connected to your bank account — will round the transaction to $3 and put $0.40 into your investment fund.
- SmartyPig – allows you to create multiple accounts for multiple savings goals and keeps you updated on the progress. Along the way, you will be able to earn rewards, cash back, and gift cards as incentives to save money.
Also read: 8 Amazing Free Apps to Save, Invest and Manage Your Money While On the Go
4. Think What Motivates You to Save
Yes, it is easier said than done, but it’s well worth the thought. Perhaps, you want to go debt free? Perhaps you are saving for a particular event? Or you may be looking to buy a new house? A new car? Whatever it is — find your motivation, picture it out in your head and get back to it whenever you feel down (all of us do from time to time). Better yet, write it down on a piece of paper.
Or you may be a competitive person who likes challenges. In that sense, you could…
Also read: 6 Ways to Motivate Yourself to Pay Off Debt
5. Join a Savings Challenge
Savings challenges do wonders for those brave enough to participate. They help you get your spending under control, all while creating a regular savings habit.
You can try short challenges that last for a few weeks to two months, or go for the longer ones that go from 6 to 12 months and could potentially save you thousands along the way. Some of the challenges to try include:
- The 60-day “no spend” challenge – when you are only allowed to pay for things that are necessities such as rent, mortgage, utilities, and so on. Your goal here is to stay away from anything outside of that such as eating out or shopping, or even going to the movies.
- The 52 Weeks Challenge – requires that you put $1 in a jar on Monday of week #1, and then up it by another dollar each consecutive week. So, for week #1 it’s $1, then week #2 it’s $2, then week number 3 it’s $3, and on and on until you reach the 52nd week. At the end of the year, you’ll net $1,378!
- Mondays to Sundays Challenge – leave $1 on Mondays, $2 on Tuesdays, $3 on Wednesdays, $4 on Thursdays, $5 on Fridays, $6 on Saturdays and $7 on Sundays. Repeat this throughout the year, and after 52 weeks you’ll save $1,456!
Also read: 5 Easy Money Saving Challenges
Your turn…
Do you have some novel way to grow your savings? And are you willing to share it with us? Feel free to use the comments box below.
Or try some of the ways outlined here and let us know which ones worked for you. Good luck!