Receiving your paycheck is a good feeling. It rewards you for the hard work you have put in. But it is so tempting to spend it all on something you think you need. Think first before you spend: what if your future depends on what you get paid today? The trick is to find good ways to save from your paycheck, and we offer five possible ways you can do it. Each way will help you save money for retirement, or prospective large purchases, or anything else that requires putting away money for a rainy day.
- Make a budget and stick to it.
Before you can even think of ways to save, you have to come up with how exactly to spend your money so that you can allocate your savings. Calculate exactly how much you spend each month on things such as utilities, gas, food, rent, and other recurring expenses. Don’t forget to include an allocation for emergencies. Make sure you have at least a tenth of your budget each month for saving, and perhaps more if your circumstances allow for it.
- Make savings automatic.
If your paycheck goes to a checking account, you might want to ask your bank if there are schemes for automatically saving money from it. You can set the frequency and amount you wish to save, based on your budget, and set up where to put your savings. For instance, if you know how much you are expecting on a given month, you can ask the bank to set aside a certain amount of money for your individual retirement account.
- Have fun with coupons.
If you are considering saving small, take a look at how much you’d save from purchasing using coupons. Take the difference between the amount you would have spent and the amount you would have saved and deposit this difference as savings. Over time, you will realize that the amount you save would be a significant one.
- Reduce the amount you spend dining out.
If you love eating out but want to save money, try using services like Groupon, local shoppers or dine out during happy hour. The extra money, you save by using these services can be placed in your savings account.
- Avoid impulse spending.
Saving from your paycheck includes avoiding behaviors that would dwindle your amount for savings to begin with. If you are the kind who loves to shop online, for instance, think before you click and buy a certain item. In fact, one expert recommends waiting 48 hours before deciding to buy anything online, giving you time to seriously weigh the pros and cons of buying an item. The point is to avoid impulse buying, which can quickly drain your paycheck and imperil your budget!
Saving money from your pay helps you feel good about your finances, knowing full well that you have something set aside for your immediate or distant future. Consider following these tips today and feel empowered about your money.