How to Improve Your Savings Strategy on Any Budget
Tags: Saving, Improvement, Budget

Having an emergency fund to pull from during a time of crisis is vital to your financial health, especially if you are living paycheck to paycheck and currently have very little savings with your bank. Although our day-to-day expenses seem like they may be covered by our income, small unforeseen circumstances can quickly build up and put you in a position where you cannot afford your basic lifestyle. Are you looking to build your wealth and secure your future? If so, here are some tips on how you can improve your savings strategy on any budget.

1. Save Your Change (or Download an App to Do It for You)

Whether you are just starting to become more financially stable or are still in a position where you have very little to save, storing away the change that is left over from your purchases is one great way to slowly build your savings without creating further stress for yourself. You can either do this in the form of setting aside physical money when you go shopping or making small transfers to your savings account. Even better, there are now applications like MoneyBox that can help you save and invest small amounts of money at a time. No matter how little you can save, that amount will grow into a more substantial sum of money given time.

2. Pay Yourself First

For many, saving money is the last thing on their list of priorities. Although this is fine when there are no extra expenses for the month, the lack of savings becomes a major issue once you realize that you have nothing to fall back on. Rather than continuing to engage in the same financial habits, treat spending as a priority and pay yourself first. Figure out exactly how much room you have in your budget, set a specific amount to be stashed away each paycheck, and save it as soon as you get paid. This ensures that you don’t end up running out of money before you have the opportunity to save it.

3. Get Excited About Saving

If the concept of saving seems like a chore to you, you are naturally going to resist it. If you are excited about saving, however, you are going to want to stash away as much money as possible. But how can you get excited about doing this? That’s easy! Set realistic savings goals that will help you accomplish something you have been wanting to do. When we are putting funds away for vacations, things that we want, or special events, saving becomes easier. Try to develop goals for your strategy that will get you in the habit of saving money. Over time, it will become second nature to you.

Additional Tip for Savers: Pay Off Your Debts First!

Many people get excited to save money, only to forget about the cloud of debt that lingers over their heads. Make no mistake, you can still save and deal with debt at the same time. However, you don’t want to avoid paying off any owed money in an attempt to grow your savings as this will only make your financial situation worse. Save what you can and make sure that you are taking care of your debts in a timely manner. Once your debt is paid off, you can begin putting away that extra money in your savings account!

While saving money can seem impossible when you’re living paycheck to paycheck or unnecessary if you have enough money to settle your day-to-day expenses, having an additional source of funds to tap into during emergencies is vital to your financial wellness. If you struggle to save and don’t know where to begin, use the three tips above to boost your savings strategy and improve your future.