So you’ve decided that it’s time for you to get (more) serious about your finances, particularly saving. That’s great! Getting started is the hardest part. We’ve got tips to help you take those first few steps on your savings journey.
Building savings is important for every household, no matter how much you earn. It can lower your anxiety about money because you have the resources to deal with the unexpected things that always come up. It empowers you to work toward big, exciting purchases, such as a new car or a vacation. It enables you to think long-term about your financial goals for home ownership, retirement, or education.
Now take a moment to reflect on what motivates you to make this change and what you hope to achieve. Even if the idea of saving money seems daunting, it gets easier when you break down your goals into specific, measurable actions that you able to achieve with the resources you currently have.
Once you have your goals in mind, here are SEVEN STEPS to help you start and build success on your savings journey.
1. Make a commitment
If you’re committed to building your savings, then tell someone about it! Write your goals down in a place that you will see often. Then take the time to consider how you’ll achieve it. The America Saves Pledge is a tool that helps you make a simple plan to meet your savings goal while offering you long-term accountability and support along the way.
2. Open A Savings Account
If you don’t have a savings account, now’s the time! Choose a reputable bank or credit union that offers FDIC insured savings accounts with low or no fees. Most banks will even allow you to open multiple savings accounts. You could have a separate account for each savings goal and easily track your progress!
3. Establish Emergency Savings
Unexpected emergencies often sabotage our financial goals, so getting in a savings mindset and building an emergency fund is crucial. Start small and think big by setting a goal of a $500 rainy day fund. Once you’ve reached that goal, it will be easy to continue!
4. Set up Automatic Savings
The easiest way to save is to save automatically! Contact your employer to set up a direct deposit into your savings account each pay period or set up an automatic transfer from your checking account to your savings account at your financial institution.
5. Get Serious About Reducing Your Debt
When you reduce your debt, you save on interest and fees while maintaining or improving your credit score! Create a debt reduction plan that works best for you. Check out this resource from America Saves to compare the advantages of two different debt payment strategies.
6. Get Clear On Your Finances
Build a Spending and Savings Plan that allows you to see your income, expenses, and anything leftover easily. You can create this on your own or get help at one of our budgeting workshops. Once you have a clear view of your finances, you can determine where to make changes and what else you should be saving for based on your financial goals.
7. Join a Community of savers
Growing your savings requires an ongoing commitment to your goals. It can be hard to stick with it on your own, especially if you experience any challenges along the way! The best way to get accountability and support is through a group of like-minded individuals who are all working to improve their financial situation. That’s what you can find at SaverLife!
Join the SaverLife community today and get the ongoing encouragement you need to achieve your goals! You can also take the America Saves pledge again for a new category of savings in order to receive more tips, support, reminders, and tools for all your savings goals.
