With wages down and cost of goods up, it's not easy to save. After years of savings rates close to zero however, Americans are getting smart about their money again: even though the economy is still in a rough spot, we're saving an average of 6.4%, according to June data from the U.S. Commerce Department. Not bad, but if you're like most people, you would probably like to do better. Here are five ways to trick yourself into saving more.
1. Go On Autopilot
Ever heard the phrase, "pay yourself first?" It's
the best trick to get into the habit of saving: when you pay your bills
come payday, budget for your savings just like it's another bill you're
paying. Set up separate accounts for emergency savings (for when the car breaks down, or the water heater breaks), retirement and for more fun goals like that family vacation.
Make your savings a no-brainer by setting up an automatic transfer to the account(s) on payday, so you're not tempted to spend the money elsewhere. (Learn more in 4 Reasons Why Savers Fare Better Than Spenders.)
Make your savings a no-brainer by setting up an automatic transfer to the account(s) on payday, so you're not tempted to spend the money elsewhere. (Learn more in 4 Reasons Why Savers Fare Better Than Spenders.)
2. Keep The Change
Remember that big jar of change you had in your
college dorm room? Bring it back into fashion, and empty your wallet of
change a few times a week. Get the family involved; if you have kids,
have them draw a picture of what you'll do with the money once the jar
is full. Exchange the coins for bills at your local bank for a small
fee, or use one of the coin exchange machines in the supermarket - check
around to make sure your savings don't get cut too much by exchange
fees.
Keeping your change over the course of a year can easily add up to a few hundred dollars in savings - another painless way to save. And you'll really grow to love those pennies that used to clutter up your wallet.
Keeping your change over the course of a year can easily add up to a few hundred dollars in savings - another painless way to save. And you'll really grow to love those pennies that used to clutter up your wallet.
3. Forget The Raise
Got a raise? Congratulations! Before you start
spending this windfall, increase your automatic transfer to your savings
account to reflect that pay increase. If it's an annual cost-of living increase, you've likely already adjusted to higher prices, and if it's a promotion-related raise, you won't miss the money.
Instead of spending your extra pay, put it towards something that's important to you, like retirement savings or a family vacation. (There are many ways your employer can make your job more pleasant, even when money is tight. Check out Can't Get A Raise? Negotiate Your Benefits.)
Instead of spending your extra pay, put it towards something that's important to you, like retirement savings or a family vacation. (There are many ways your employer can make your job more pleasant, even when money is tight. Check out Can't Get A Raise? Negotiate Your Benefits.)
4. Keep The Habit
It took you years, but you finally paid off your
car. Instead of being tempted to spend the extra cash you now have each
month, pretend you're still making that payment, but make it to yourself
instead. You can set up an automatic transfer to savings for the
payment amount; if you're really looking ahead, you can set the money
aside until it's time to replace your car. Imagine going to the
dealership years from now and paying cash for your next car - now
there's some motivation to keep those payments going into savings.
5. Finders Keepers
We all run into the occasional found money: that
rebate check you forgot about, the $20 in your winter jacket from last
year or that larger-than-usual tax refund. Instead of blowing this money
at your local store of choice, put it into savings. You won't miss the
money, and it'll get you closer to your goal if you put it in your
savings account, accruing interest. (To learn more, read 5 Ways To Make A Tax Refund Work For You.)
Read more: 5 Ways To Trick Yourself Into Saving Money | Investopedia http://www.investopedia.com/slide-show/5-ways-to-trick-yourself-into-saving/#ixzz41J30bOgV
Read more: 5 Ways To Trick Yourself Into Saving Money | Investopedia http://www.investopedia.com/slide-show/5-ways-to-trick-yourself-into-saving/#ixzz41J2mSWml
Read more: 5 Ways To Trick Yourself Into Saving Money | Investopedia http://www.investopedia.com/slide-show/5-ways-to-trick-yourself-into-saving/#ixzz41J2TiK8d
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