Do you wish you could save more?
If so, you’re not alone. Many people want to save more money. In fact, according to a Student Loan Hero survey not saving enough money was the biggest financial regret of 2016.
Unfortunately, trying to find additional money to set aside can feel like a chore at times. Plus, with student loan debt, living expenses, and other costs in your life, it might seem like you don’t have the money anyway.
All of which leads to the big question: why is it difficult to save money in the first place?
3 reasons it’s so hard to save more
Understanding your triggers and getting a feel for why it’s so hard to set that money aside can help you overcome your savings shortcomings.
Last year, TD Ameritrade researched millennial spending habits and as well as why it may be difficult to get excited about socking money away in a savings account. Here are three reasons as indicated by their results.
1. Anxious about debt
According to the TD Ameritrade survey, 47 percent of millennials are anxious about their debt. Student Loan Hero also found that a significant number of Americans have put off life milestones due to their student loan debt.
It’s hard to feel like you can start saving more money if you also have a lot of debt to pay down. Additionally, the need to be debt-free may take precedent over boosting your savings.
2. Don’t feel financially secure
The TD Ameritrade survey also indicates that 50 percent of millennials don’t feel financially secure right now.
While 41 percent expect to feel financially secure in the future, for now, it might be a stretch to save more when there are worries about what’s next.
3. Pressure to keep up with spending habits
About 34 percent of millennials feel pressure to keep up with their friends’ spending habits, says the TD Ameritrade survey.
And on top of that, 15 percent of millennials have said they spend money to make a good impression.
It doesn’t help that social media can increase those pressures, resulting in increased spending, instead of increased savings.
When you feel like you don’t have a handle on things, it’s difficult to feel like you can save more. The good news is that there are ways to trick yourself. Here’s how to save more money in five different ways by tweaking your everyday habits.
5 methods for saving more money
1. Use cash, save the change
I love paying for almost everything with my rewards credit card.
However, back when I didn’t have my spending under control, it was a different story. I wanted to limit my spending and save more.
So I used cash. The truth is, you can trick yourself into saving by using cash for your purchases.
First, you keep a jar at home. Then, at the end of the day, put all of your change plus your $1 bills, into the jar. As you get more comfortable with this method, you can put $5 in the jar as well.
This is a great way to build up a little more savings. Every week or month, take the jar to the bank and deposit the money in a high-yield savings account.
2. Take the 52-week challenge
A few years ago, the 52-week savings challenge became popular.
You start by depositing $1 in a savings account during the first week of the year. The next week, you deposit $2. You keep increasing the amount you put in each week until the end of the year when you deposit $52.
By the end of the year, you should have $1,378 in the savings account. You can even super-charge your efforts by starting at a higher number, like $10 or $20, for the first week.
3. Bank your loyalty and coupon savings
Do you have a loyalty card at the grocery store? Do you clip coupons? If so, you can save more by banking on those savings.
At the bottom of my grocery receipt, it lists how much I saved during that trip as a result of being a loyalty member. Whether it’s $5.12 or $16.37, that’s money I can put into the bank.
4. Continue making payments
I recently paid off my car. Now, instead of using that money to make more purchases, I plan to boost my savings through investing.
In a couple of months, the last payment for surgery on my broken wrist will be made. I’ll start banking that money as well.
You’re already used to making those payments, so don’t stop. Only now, instead of going to someone else, those payments are going to help you save more.
5. Automatic savings
Want to learn how to save money quickly and easily? Make it automatic.
These automated tools save on your behalf, using algorithms and other methods to automatically move your money into a place where it benefits you.
You can also use automated savings through your workplace. Have your employer keep a portion of your paycheck to send to a retirement account or savings account.
In some cases, you might even be lucky enough to work for a company that offers a match. If so, you get free money when you save. Talk about a win-win.
When it comes to figuring out how to save more money, there are plenty of tools are at your disposal. Find one that works best for your lifestyle and get to work saving. There’s no time like the present to save more money!
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|2.75% - 7.24%||Undergrad & Graduate||Visit SoFi|
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