Pay yourself first is a great idea and for some, a concept for someday when all the financial stars align. This is where a dare to say out loud process might help you prioritize savings in the …. Budget. 🙂
Your monthly budget should include savings. There will always be things you need money for in the future. Perhaps it's a planned expense, such as a vacation or a new car or something unexpected like a broken tooth! Ouch! Getting in the habit of setting money aside gives you peace of mind and flexibility to cover all those things that are big, small, and unexpected.
Saving can be really difficult, though. (It is for me.) This is especially true if money is tight to begin with. The benefits make socking away even small amounts worth the commitment. One of the best things you can do for yourself is to get in the habit of saving on a regular basis. Follow these tips to get started.
Pay Yourself First
When just getting started with the habit of saving money, you'll first need to change your mindset. In the past, it's likely you spent with little thought, perhaps on impulse. Now is the time to become very purposeful in your actions regarding money. Start by making sure to pay yourself first before doing anything else. Set aside a certain predetermined amount each paycheck and put it in an account where you're not likely to touch it. Soon, you'll find this practice will become easier.
Make It Automatic
In fact, you can start making it easier by automating the process. There are banks, as well as some apps, that will automatically transfer a specific amount of money from checking straight into a savings account upon deposit. This takes away any need to even think about it. You may soon discover you don't even miss that money as you become accustomed to your new budget. This is my favorite suggestion. It works for me.
Challenge Yourself
If you have goals to save money for something special – or even if you just want to set aside more once you've gotten used to setting aside your initial amount – challenge yourself to do better. Increase your savings incrementally each month to see what you can do without. There are a lot of things we think we need that we can actually do without, given a change in mindset and some creativity.
The Bottom Line
There are tons of small ways you can add to your savings each month like allowing your bank to charge up to the next dollar amount in your checking account and move that change into your savings account. And, a number of expenditures you can cut like all those app subscriptions you never use. (I’m guilty.) Give these ideas some thought and a try as you begin getting used to the habit of saving. You can always add bigger challenges as time moves on. Right now, the goal is to make a change that sticks.
