Money Management Series: Rule #3

You’ve created a budget and set financial goals. Now, you need to get specific about saving. Money management rule #3 is all about saving, or the specifics of saving. To be able to manage your money, you need to be able to save. More specifically, you need to know where you can cut back to save more and how to be consistent with saving for your financial goals.

To help you, the CGS Team is sharing a few pointers on where most people can afford to cut back, as well as how you can make saving money very simple for yourself. Saving is all about self-control. If you get specific about why and how to save, you will find it easier than you think!

The Why of Saving

This may be a “duh” moment, but the reason one saves is for the future. You save to reach your financial goals. You save to make your life easier. You save to purchase the things you want. These are just a few of the many reasons why you should be saving. Even if you truly can only afford to save $25 a month, you need to do so. The inability to save shows a lack of self-control and a lack of regard for your future. You may have some underlying money issues that are hindering you from saving. 

Where To Cut Back

You may already follow a tight budget, but there ways you can save even more. Here are a few common (and not so common) areas where you can consider cutting back:
– Stop eating out (fast food included)
– Start doing your own mani/pedis
– Get rid of the extra cell phone data you don’t use
– Switch banks to avoid monthly fees
– Get creative with food in the pantry or freezer
– Check out Netflix and get rid of cable

The CGS Team has provided numerous articles that can help you get inspired about saving and learn different ways to save. Check out a full listing of the Savings articles available to you.

Simplify Saving

Want to know the easiest way to consistently save money? Automate your savings! That’s right, have your savings directly deposited from your paycheck to your savings account. That requires no effort on your part, other than putting in the initial request. If you want a little more control over the automation, set up automatic transfers from your checking to your savings. Most banks allow you to customize the frequency, amount, and date of transfer. This is also a one-time request.

The reason why you should automate savings is to reduce the chances of forgetting and being too lazy to transfer. Also, it’s easy to leave the money in your checking account, spend it, and then have nothing left to put into savings. You can prevent this from happening to you by being proactive. It boils down to self-control. If you are putting off setting up your automatic savings, then you aren’t serious about it. When you are truly ready to manage your money, you will consistently save.

 

What ways do you cut back to save? How do you find a medium between saving and spending? Do you automate your savings to make it easier for you? We need to share what works for each other so that we can all have takeaways! Share your thoughts and your saving experiences by leaving a comment below.

-The CGS Team

Check out other Money Management Series Posts:

Money Management Series #1: Budget Your Money

Money Management Series #2: Set Financial Goals

Money Management Series #3: Get Specific About Saving

Money Management Series #4: Deal With Debt

Money Management Series #5: Plan for the Future

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2 thoughts on “Money Management Series: Rule #3”

  1. Elizabeth kraker

    IO need to open a savings account in a different, get direct deposit into it and forget it! It’s too easy for me to transfer when it’s in the same bank, I know, I’ve tried!

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