Why You Need To Know What Kind of Saver You Are
Saving money isn’t easy. If it was we would all have secure savings accounts and there would be no reason for you to be reading this. Although, it’s a reality in today’s world that having a secure savings account whether it be for emergency funds or a down payment for a larger purchase we need to be thinking about savings and commit to a plan.
The problem about savings is that it takes discipline, a plan of action and committing to those actions. Here are some ways you can save in your everyday. If you’re looking for specific savings plans with actionable actions I have a post coming soon about that.
Start Here
Before you can begin saving you need to write out how much money you’re bringing in per month and how much is going out, solely just to live. Here are some questions to consider:
1. How much does it cost us to live (rent, food, utilities, bills, loans) - necessities only
2. How much income on average is coming in per month and what is left over after paying for all the necessary things?
3. How much are you spending on “fun” things? Entertainment, eating out, travel, unnecessary spending? - Look at the last month or two of spending to get an average
4. Open an APY Savings Account. Read more about APY Savings Accounts Here.
** Tip: I use Wealthfront for my savings and love it. You can open your account here.
Step #2 - Decide What Kind of Saver You Are
There are savers who can have money in their checking account and have the control to know that it is still not money they can touch. Or there are people who need every dollar in their savings or else if it stays in their checking account it will be spent freely.
It’s important to know which you are before deciding your best savings plan. If this helps you, I personally have found I am someone who can have a couple thousand in my checking account and know that it is not money to be spent. While also building my savings. But I know many people who they must put every remaining dollar in their savings because even that $100 in their checking account means “spending money.” At the end I go into detail what my savings plan and what kind of saver I am so you can see some personal insight!
Decide which you are before choosing the best savings strategy for you in your everyday life.
Step #3 - Find Your Savings Plan For YOUR Lifestyle
Now that you know how much it costs you to live and where your extra money has been going you can find a savings plan that works for you. Depending on the intensity or long-term plan you have in mind you can find a plan that fits your lifestyle.
Create your budget and expense tracking sheet and stick to it. To see your savings grow you need to have an organized plan and stick to the plan. I promise when you create a plan and stick to the minimum amount weekly, bi-weekly, monthly - whatever it is you decide, your savings will grow! And never forget you can always deposit more!
Zoey, what kind of saver are you?
If you’re wanting to hear some personal experience and situations, here is mine! Now listen, I didn’t start saving until I graduated from college (I wish I started sooner!) but within a year of graduation I have grown my savings to the tens of thousands which consist of my savings for emergency savings, freelance taxes I will have to pay and a bigger purchase saving.
Here is the saving plan I follow:
I keep a minimum balance in my checking account, I do my best to not let the balance in my checking account go under the specific number I feel comfortable with.
I input automatic deposits into my Wealthfront savings bi-monthly - this ensures I am 100% saving money each money at the minimum amount I can.
I then manually will deposit additional savings a few times throughout the month. Whenever I get a paycheck, invoice, tax refund or unexpected money I received that month.
I learned that I am someone who can have a substantial balance in my checking account and not be inclined to spend it. I don’t like to see my credit card rise and checking account decrease so naturally I have the control to not spend. But I have found myself getting addicted to see the numbers in my savings account rise week by week and month by month. See my savings account numbers rise give me the comfort and ease knowing if anything happens I have an emergency savings account I can rely on and this solely keeps me from spending.