Select’s editorial staff works independently to review financial products and write articles that we believe our readers will benefit from. We earn commissions from affiliate partners on many offers, but not all offers on Select come from affiliate partners.
It’s no secret that it is much easier to spend than to save. Saving requires discipline to prioritize the future you in exchange for all the instant gratification you can get when you make an impulse purchase. In addition, many of us are dependent on the mindset that we can always save later on the road.
No matter what we prefer right now, we know that saving is a smart financial move.
“When research shows that for every dollar you have in a savings account, you reduce the likelihood of missing a bill, refraining from medical care if something happened, skipping meals, etc. if you have an emergency,” says Mariel Beasley of Duke University. Common Cents Lab, a behavioral science lab focused on the financial well-being of people with low to moderate incomes.
The challenge is that we often see saving as sacrificing our happiness. But the good news is that there are ways to make it easier to save while not losing too much of everything else. Below, Beasley shares some tips for saving money when you do not want to make big sacrifices.
Subscribe to Select Newsletter!
Our best selection in your inbox. Shopping recommendations to help you upgrade your life are delivered weekly. Sign up here.
Save your unexpected cases
“If you do not want – or can not – cut spending, it’s second easiest to save unexpected cases, says Beasley.
Financial unexpected cases are basically extra money in your pocket: a tax refund, a bonus at work, a cash gift, an inheritance or even “cost savings” when you refinance a loan at a lower payment, she explains.
Since this is unexpected money that basically “fell on your lap”, you do not have to give up anything and then turn it over and put it in a savings account.
Although you may feel inclined to let the money go into your standard savings, consider putting this unexpected cash in a high-yield savings where they can earn a little more interest. Marcus by Goldman Sachs High Yield Online Savings offers an above average APY, no fees whatsoever and easy mobile access. It is the easiest savings account to use when all you want to do is increase your money with zero terms.
2. Automate your savings
“Saving is very easy if you do it automatically and timed with when you get paid,” says Beasley. When you automate your savings, you eliminate the decision whether you want to save or not, and you forget what you can sacrifice to set aside these funds.
If you get paid via direct deposit, you can set it so that a percentage of your salary is automatically transferred to a linked savings account every time they get paid. Freelancers or entrepreneurs with more inconsistent income streams can schedule a recurring deposit from their checking account to their savings at a time of the month when they normally have a surplus of cash flow.
“If you’re nervous about getting started, I’d set up an automatic transfer of just a little bit, like 1% from each deposit,” says Beasley. “This way you know it’s always going to happen when you actually have money coming in. And then after a month or two you can try to increase it to 2% or 3% and then keep doing it every other month until it feels like that you save what you can but still enjoy life. “
Financial expert Sallie Krawcheck also strongly recommends getting in the habit of automating your savings. Once you have set it and forgotten it, your money will grow over time and you will have become accustomed to living on a budget that stands for saving for your future – and you will eliminate the urge to think about what you give up .
Make it fun to save
Beasley also suggests that you use a personal finance app, such as Digit or Qapital, both of which make saving quite easy and painless through smart algorithms or fun challenges.
The Digit app works by connecting to your checking account and automatically saving small, random amounts of extra money from your transactions to a savings account until you decide how you want to use it.
The Qapital app allows users to create rules that trigger a transfer of money to their savings. For example, you can set a challenge that every time you eat out, a certain amount of money is saved in your emergency fund or travel fund, whatever goal you choose. Users can also set investment goals and get money to go to low-price index funds instead of a savings account.
Another way to look forward to saving is to set festive goals for yourself. “Move more to saving than you take out of saving each month for three months, and then celebrate by telling a friend or family member so they can congratulate you,” says Beasley.
4. Cut out regrettable expenses
You know you should save but do not know what expenses to cut first. These expenses may not seem obvious, but first and foremost, Beasley suggests that you avoid ATM fees and overdraft fees.
“Several years ago, we did a study where we looked at what types of purchases people were most likely to regret,” she says. “The most important thing was bank charges.” To avoid these costs, consider opening one free checking account, always use an ATM in the network and set up low balance alerts so that you do not overdraw your account.
“The second most common type of purchase that people regret is eating out,” Beasley adds. She suggests creating rules that limit how much you spend on eating out.
For example, if you normally eat out four days a week, reduce it to just three days a week. If you usually take two drinks and dessert for dinner, make a rule for yourself that you only have water with meals out or no dessert in exchange for a drink.
Conclusion
You do not have to give up much of what makes you happy to start saving. By saving your unexpected unexpected money, automating your savings, making saving fun and cutting back on expenses that you may regret later, you are already well on your way to setting aside a decent amount of money. In addition, you may feel that you really have savings to fall back on habit must make financial sacrifices in the future.
“Having a small financial pillow, even if it is quite small, can give you peace of mind and a little laxity, which will help you focus better on the parts of your life that make you happy and healthy,” says Beasley.
Catch up with Select’s in-depth monitoring of personal finance, technology and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.
Information about Marcus by Goldman Sachs High Yield Online Savings has been collected independently of Select and has not been reviewed or provided by the banks prior to publication. Goldman Sachs Bank USA is a member of the FDIC.
Editorial note: Opinions, analyzes, reviews or recommendations expressed in this article are only those of the Select editorial staff and have not been reviewed, approved or otherwise approved by any third party.