Here are some ways to save money out of every paycheck without even noticing it.
If you want to learn how to save money out of every paycheck without hurting, you’re in the right place. This blog will provide several strategies for saving money that don’t require a significant change in your lifestyle. If you want to take some of these strategies to the extreme, feel free to do so, as you may notice even more money savings.
Automatically Save Some of Your Paycheck
The easiest way to avoid feeling the pinch of saving is to have it done automatically. There are several ways to do this. First, you can have your employer take more of your income in your automatic tax withholding each paycheck. Then when you file your taxes, you’ll get the money back as a tax refund check, which you can put away into your savings account. The only “problem” with this strategy is that you’re giving the federal government an interest-free loan.
Second, you can set up an automatic bank transfer from your checking account (assuming this is the account that you deposit your paycheck into) into your savings account. You can have this occur every month or some other set period.
Third, you can have your direct deposit go into multiple accounts. Most of it can go into your checking account, but a certain percentage can go directly into your savings account. After a few pay periods, you won’t even notice the money you’re saving.
Fourth, if you have the discipline, you can manually save the money yourself until it becomes automatic. If you’re diligent about it, saving this money will be like paying your mortgage and you won’t even notice you’re doing it.
Use Credit Cards That Offer Rewards
If you are diligent about not carrying a credit card balance each month and willing to use a credit card for every purchase possible, then cash back credit card rewards are an excellent way to save money. Depending on the credit card company, you can receive anywhere from one to five percent cash back on credit card purchases. This is great for things you’ll buy anyway, like groceries and gasoline. And if you can pay your bills with a credit card (without a fee), then there’s even more money you can save.
Save Any Unexpected Money that Comes Your Way
If you find a $20 bill on the ground, get a bigger bonus at work than you expected or maybe take advantage of a class action settlement for a product you bought a few years ago, save that surprise money. Do not spend it or even look at it, but put it away as soon as you get it. The faster you put away the money, the easier it will be to act like it was never there.
Pay For Insurance in Full
Most insurance companies will provide policyholders with a special discount on their premiums if they pay for coverage for the entire year, instead of each month or quarter. If you have the cash, this is easy money you can save without having to make any sacrifices. If you end up changing insurance companies in the middle of the year, that’s not a problem. Your old insurance company will gladly mail you a refund check for the unused premiums. This refund check is then another opportunity to save because when you get the check, you can deposit into your savings account instead of your checking account.
Use Cash to Create Change
One way to force yourself to save money without realizing it is to make a few purchases each week in cash. Then when you get loose change, place that change in a piggy bank or jar. Once that piggy bank or jar is full, rolls up the coins and deposit it into your savings account.
Even if you’re working on how to save money out of every paycheck, you may need a title pawn to help you in the meantime. Come on into Title Tree, and we can help you get the cash you need.