7 Savings Tips to Establish Good Habits

Key Takeaways:

• Focus on needs versus wants when you’re trying to save.
• Set up automatic monthly transfers from checking to savings.
• Pay your bills on time.
• Shop around for financial services and consult with your local banker. 

What would you like to save up for? Tightening your budget is important, but it’s not the only way to get there. Check out six more ways to make progress toward your next savings goal.

1. Determine needs versus wants.

Savings do start with a budget that allows for it. Small changes to your daily routine can make a big difference. If you eat out multiple times a week, try bringing your lunch to days at the office or cook dinner at home instead. If you buy coffee every morning, try purchasing a creamer you love so that you’ll be more inclined to make coffee at home. With these easy changes, you can save hundreds of dollars a year or more.

2. Pay yourself first.

Decide how much money you’d like to save each month and how much you’ll need in your checking account. Then, transfer the amount you’d like to save as soon as you get your paycheck. If you wait until the end of the month and just save what’s left over, you are much less likely to save. If you get a raise or have a big goal in mind, increase the amount of your transfer.
 

3. Take advantage of bank technology. 

To make paying yourself first even easier, consider automatic payroll deductions or automatic transfers from checking to savings. With either method, you can arrange to have a specific amount transferred to your savings account every pay period.

4. Pay your bills on time (more than the minimum, if possible).

Late bills come with late fees, which work against savings goals. Schedule time once a month to pay bills through the mail or online with enough time to spare.

5. Shop around.

There are thousands of options for financial services. Be selective and make sure you’re getting the best prices, the best service, and the most convenience.

6. Consider investments.

For long-term goals such as saving for a home or retirement, consider a diverse range of investment options. If you've never considered investing before, get tips for beginners. 

7. Consult your local bank. 

Your local banker is the best source of information about savings accounts and rates. Talk through all your options and get help assessing the best fit for your savings goals.
 

Tips sourced from the American Bankers Association.