How To Save Thousands In One Year
My parents instilled two financial lessons into me from a very young age: Never go into credit card debt and always have a rainy day fund. I took heed to their advice, and I didn’t get my first credit card until after I graduated from college and got into my career. During that same time, I started my rainy day fund. And I soon found out how hard it was to consistently deposit money into the account without removing it at a later date. After some trial and error, I finally found a way always to save money and use it only for its intended purpose. I’m going to share the two tips that helped me save thousands in one year.
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How To Save Thousands In One Year
Separate Savings Account
The first step that I took was opening a different savings account that’s not linked to my checking account. How did this help me save consistently? Out of sight, out of mind. I started seeing my checking account money as my only available money. The separate account stopped me from transferring money from my savings account instead of budgeting what I had available.
Direct Deposit It
To prevent myself from using my savings or not transferring the money at all, I started depositing part of my paycheck directly into the separate savings account. This way, I didn’t have any excuse for spending the money. I looked at it in the same way that I do my health insurance payments or my 401k. My thought process is, Am I missing something that I never had in my possession?
Don’t Put It All In One Place
If I’m saving up for different things, I never put it all into one account. I’ve had times when I forgot what money I had allotted for what purpose. To prevent that, I stopped grouping all my savings. It’s simple, but it prevents a lot of headaches.
What tips do you have on how to save money?
