One small switch will help you succeed when you’re trying save money – without thinking twice about it.
Do you find trying to save money difficult? Do you feel unsettled if you still have money to spend? If you’ve gotten used to living paycheck-to-paycheck, it will take time to make the mental shift to putting money into savings. This is never truer than when you still owe money on bills, but it is essential to get over the guilt of being in debt so you can protect your financial self.
Should You Save Money if You’re Really Poor?
There’s a reason financial experts recommend you “pay yourself first.” Setting aside a portion of your income protects you during emergencies. It doesn’t have to be a massive investment either. Just $10 per paycheck adds up over time. The big hurdle is starting the process of trying to save money.
Some experts speak against this advice for the poorest spenders. They say you’re better off paying your bills on time and avoiding late fees. You don’t want to pay certain bills late because of the risks involved. Loan and credit card payments must be in on time to protect your credit. Rent must be paid on-time to ensure future references and to prevent eviction. If a bill has a low or no late fee, it may be worth paying it late to establish a saving mindset.
What’s the Easiest Way to Start When You’re Trying to Save Money?
Once you’ve decided on an amount to put back on every check, automate the process. Use your bank’s online features to transfer a certain amount from every payment into a savings account. This is particularly useful for people new to saving money, as it takes the work out of their hands. You have the comfort of knowing you’re saving every month without being responsible for making it happen. Your bank account does it all by itself.
The Simple Dollar refers to this as a “Two-Account System”. First, you need two bank accounts with online banking features. Many banks automatically set up a savings account for everyone with a checking account. Others require a minimum deposit, often just $25.
Once you have two accounts, pay attention to the dates your funds are available in your checking account. Your money may not be available for a few days after your paycheck is deposited. When are you able to spend your funds? Set up transfers for a day later, so your bank automatically moves $10 or more to your savings account every time you get paid.
How Will You Change as You Save Money?
As time goes on, a few positive changes will happen when you’re trying to save money. First and foremost, your savings will grow. If you wind up with an infected tooth, a flat tire, a broken furnace or another emergency, you’ll have the money on hand to cover your needs without spending every dime you need for living expenses.
Secondly, you’ll adopt a savings mindset. Every time you get paid, you’ll feel proud of putting money away. You’ll start to feel more secure that you’re building up savings. You’ll begin to feel like you’re smart about money, and that is where the road to financial success begins and ends.
Fiscal responsibility has nothing to do with being smart or earning lots of money. It comes from feeling confident, and many of the country’s poorest consumers don’t believe they have a way to save. Anyone can do it, and everyone should start trying to save money. Title Tree is here to help.
If you’re looking for ways to make ends meet while you’re trying to save money, give one of our Atlanta branches a call. We offer convenient, affordable financing you can secure in a matter of minutes. Get in touch, and get on the road to financial independence today!