When it comes to saving money, most of you might be scared away because it means you have to make a budget and actually stick to it. Other than weight loss, sticking to a budget might be the most broken goal. They are hard to figure out and even harder to remember to keep. But, experts are now saying a budget isn’t as necessary as you might think.
Know Your Number
You typically think of knowing your numbers relating to your cholesterol and blood pressure. But, if you figure out how much money you need to save every month, quarter or even year, and know that number, you can be more flexible with your budget. Experts agree that if you figure out how much money you want to invest into retirement, savings, emergency funds and other accounts each month you can spend your extra money on whatever you choose, as long as money is being saved before those unnecessary purchases.
Be careful about thinking you are in control and know your number. It is easy to say I want to save X amount of money, and then forget to actual save it or spend the money on other wants. To ensure this doesn’t happen the best banks offer direct deposit and withdrawals. Know your number and have that money automatically withdrawn from your checking account and deposited into your emergency fund, college funds, retirement accounts or savings accounts. If the money is automatically withdrawn you don’t have to think about it and you can’t spend it. Once the money is out of your checking account you assume it is gone and can’t spend it. But the good news is the money isn’t gone, but just deposited in a different account earning interest and increasing your savings.
Technology today makes it easier than ever to keep track of your money. You can know where your money is being spent, transfer money into savings accounts and open new accounts all from any device. The best banks offer these different online banking tools. Don’t forget to also consider looking into online banks. This way you can keep track of saving your money while you are constantly on the go. Online banks offer the option to transfer money, make deposits, open accounts and typically offer higher interest rates than brick and mortar banks.
A New Way To Save
Saving money doesn’t have to be as difficult as you might be making it. If sticking to a budget is hard for you, consider being more aware of the number you would like to save in a certain amount of time and be diligent about depositing the money into a savings account. Keep track of the balance in your checking account and make sure not to transfer too much money into your savings account so you end up having to pay overdraft fees or using a credit card to cover necessary expenses. Saving money shouldn’t cost you credit card interest or fees. If you don’t like a budget, try knowing your number to save money.