Most people are new savers because they don’t have to worry about saving money until college, and even then, saving isn’t a high priority (graduating is). Saving money can be hard when you first start, because it actually requires you to tell yourself “no”, or that you can’t have something. More importantly, it means that you have to establish a responsible habit, and be consistent, even if you feel like your expenses are too tight.
With time, saving gets easier and easier. As your savings account grows, the desire to keep it growing should outweigh the desire to take money out. The CGS Team understands the challenges of trying to save money, especially when you’re just starting out on your savings journey. Check out these 4 tips for new savers to get a jump start on saving.
Cashback Credit Cards
When you’re trying to save, you don’t want to rack up more credit card debt. However, if you don’t have any debt, consider using a cashback credit card for your everyday purchases. Nowadays, many credit cards have rewards associated with the purchases made on the card. It’s an easy and unique method of saving money while spending.
Beginning savers who use their credit cards for almost everything enjoy these cashback credit cards because they can get as much as 5 percent back on all purchases! Be careful not to overspend. If you have to start paying interest, the rewards aren’t worth it. Get the details of your current cards to see if you could be cashing out. Read 5 Smart Ways to Use Credit Cards for Rewards for more insight.
What’s easier than not having to do anything? Automating your savings will make it so much easier for you to save without worry. Have a certain amount of your paycheck direct deposited into your bank account each pay period. The “out of sight, out of mind” notion actually works.
If that amount never makes it into your checking account, you’re not missing anything. You can also have automatic transfers set up within your bank. We recommend keeping your savings in a separate institution, especially an online bank, so you aren’t tempted to constantly touch your savings.
Like any other app category, smart phones have apps that can help you save and manage your money. Apps like Mint, Digit, and many more are all designed to help you budget money and save. We use our smart phones for almost everything, we may as well take advantage of our phone to help save money while on the go!
Digit is especially great for saving. Digit analyzes your bank account to see how much you make and spend. It then subtly takes small amounts of cash and puts them in a savings account. It’s designed allow you to save money without feeling the weight of large amounts of money moving to savings.
We’ve all heard people reference themselves as coupon queens and kings a least once in this generation! Couponing has become a fad that hasn’t gone away. It’s great for saving money and buying items you need at a discounted price. Most coupons can be found online, at the actual store, or amongst your newspaper cluster.
Using coupons can help you save that extra $5-10. It may not seem like much initially, but over the course of time it adds up. You may be surprised to hear that even celebrities use coupons. Check out the Savvy Saving Celebs article to see which singer is proud to cut coupons!
Saving takes practice, patience, and money! Whether it’s opting for the value menu when you want some fast food, or deciding to buy a used car instead of a new one, it’s all in the mindset. Are you a savvy saver? What steps do you take to ensure you’re saving money? Share with us by leaving a comment below and we will add you to the ongoing community list of How CGS Members Save Money!
2 thoughts on “4 Tips for New Savers”
I think the most important thing a new saver should take away from this article is the “automate” tip! Automating your savings (and never touching) it is the best way to go. The money WILL add up!
I am a big fan of having a credit card that offers a cash back reward – the biggest pitfall with that is that it becomes easy to justify unnecessary purchases because you’ll get 1% or 5% back. If you can avoid that and pay your card in full every month, it’s a great way to get additional money on purchases you already need to make!
I’m also a huge proponent of automating things as much as possible. While I have stopped using Acorns to focus on investing at Betterment, Acorns is a really unique and painless way to start investing. You set it up so that it’s connected to your primary spending account, and for each purchase you make, it will round up to the nearest dollar and keep track. Once you hit $5 or $10 in roundups, it’ll automatically withdraw the money and invest it for you. If you have considered investing but don’t know where or how to start, Acorns is a great place to get your feet wet.