Everyone wants to save more money, but many people don’t know where to start. Infinity Financial Services, leaders in financial planning near Oakland, provides its clients with the necessary tools to get moving and never look back. In the spirit of New Year’s resolutions, here are some tips for saving more in 2018.
Make a Budget
Easiest tip first, right? Not so fast. A large percentage of Americans have a hard time creating a budget, let alone maintaining one week to week and month to month. But trust us when we say that in order to get started on saving near Oakland, a budget is a must. Start by determining your monthly expenses and recording them in a spreadsheet. Then add in expenses that don’t occur every month, like a dental checkup or car maintenance. In a separate column, list your monthly income. This type of basic budget goes a long way towards helping you plan your monthly spending and minimize overspending.
Set a Savings Goal
Goals are important in every facet of life, and setting a savings goal is a shrewd form of self-motivation that will encourage you to create a budget and start saving. What do you most want to save for? A vacation? Home down-payment? Child’s college tuition? Whatever it is, figure out how much it costs, set a timeframe, and determine how much you must save every month in order to hit your goal. Examples of short-term goals (1 - 3 years) include vacation, a car down-payment, and an emergency fund (in case of job loss, health issue, etc.). Long-term goals, which typically take four or more years to save for, are things like a down-payment on a home, college tuition, and retirement.
Automation is a godsend for people who want to save money but need that extra bit of impetus to get them over the mark. Every bank allows its customers to make automated transfers between their checking and savings accounts. Moreover, every bank accepts direct deposits – specifically, your monthly paycheck. Going a step further, automation allows you to set parameters for transferring money from your checking account to your savings account, i.e. once a month, $500 is shifted between accounts.
If you’d rather skip the inter-account transfer approach, you can dictate how much of your direct deposits go to checking and how much goes to savings. Once you set the rules, everything is done for you and you barely have to think about it. The money goes directly into your bank accounts, and not into your wallet, which in itself significantly reduces any urge you might have to spend the money instead of save it.
Monitor Your Progress
Nothing is more motivational than seeing the fruits of your hard work and dedication pay off. Every month, or a few times a month, check your savings progress. This will allow you to make any necessary tweaks, as well as motivate you save more, meet your first set of goals, and set your sights even higher.
For more savings tips and the most insightful investment planning near Oakland, contact the experienced professionals at Infinity Financial Services.