Whether circumstances now necessitate you to save more money or if you’re just tired of spending money on things you don’t need, we all could stand to be a little more careful with our funds. Sometimes, we can develop harmful spending habits without thinking, even when we’re trying to be good. To counteract this, we need to build up better habits to protect ourselves and our money. Here are a few new habits to start if you need to save money.
Choosing Lower-Cost Options
When you really need to save money, get into the habit of choosing to buy from stores and brands that have lower prices. Maybe opt for a regular grocery store over the all-organic one you’d prefer. Learn to navigate your local thrift store rather than buying name-brand clothes. Decisions like these are how you make a significant difference in your average monthly spending.
Savings Account Auto-Transfer
The temptation to spend your paycheck on trivial things the moment you get it is a strong one. All this new money has come in, and your brain tells you that it’s perfectly fine to make that splurge purchase. However, a beneficial new habit to start if you need to save money is to automatically transfer a large portion of each paycheck into a savings account so that it’s harder to access. By reducing the amount of money you can see in your checking account, you remove that visual trigger in your brain that entices you to spend, helping you save more over time.
Keep Spare Change
This tip can refer to the physical spare change you get from cash transactions or digital change that you regularly deposit through an app. These small amounts of money may not seem like much, but they can add up to a lot of money over time. Try to fill up a certain amount of change before you cash it all in for the best payoff.
Track Your Spending Activity
Keeping a close eye on your spending activity can help you figure out patterns of bad spending behavior. If you notice you spend much more money right after you get a paycheck, start depositing it right away instead. You might even find a trend in the activity that you didn’t know you were doing. Remember that a small purchase every day adds up to a lot of money in the long run and can really drain your bank account.