Chris O'Shea
Saving money is a vital part of your overall financial health.
Different Kinds of Savings
It’s important to have the following different savings accounts:
- Long-term savings, for retirement or a down payment on a house.
- Emergency fund, to help you cover unexpected expenses.
- Short-term savings, to save for shorter-term goals.
- Maybe more savings, depending on your needs.
So how do you get to where you want to be? There are a few ways to save quickly, and they aren’t even that difficult.
Savings Strategies
Here are three easy strategies to boost your savings as fast as possible.
1. Cancel Subscriptions. According to one study, the average consumer spends about $86 per month on subscriptions. Go through your subscriptions and cancel any that you haven’t used recently.
2. Cut Back. Once you have subscriptions canceled, comb through your budget for areas where you can reduce additional spending.
Start with the smallest expenses first, things like:
- Entertainment
- Eating out
- Travel
Once you have cut smaller discretionary expenses, move on to larger expenses to see if there are other areas where you could cut back.
3. Make it Automatic. One easy way to increase your savings is to set up an automatic deposit into your accounts. Each paycheck, make sure a certain amount goes into your savings before you even have a chance to spend it. Out of sight, out of mind.
Bonus
One more thing, set your bills to autopay. Now bills won’t catch you off guard, and that will help you maintain your budget and boost your savings.
Jean Chatzky
