Are you saving for the future? Many people struggle with knowing where to start when it comes to saving. While some seek advice on how to invest or diversify their savings, others are simply unsure of how to begin. If you’re one of those people who feels unsure about how to start saving, you’re not alone. Even individuals with higher incomes often find themselves living paycheck to paycheck, with little to no savings for emergencies or retirement. The good news is that it’s never too late to begin. There are plenty of simple ways to start saving, even in small amounts, that can help improve your financial future without drastically altering your current lifestyle.
When it comes to saving, the issue often isn’t how much money you earn, but rather how much you spend. While unavoidable expenses, such as medical bills or home repairs, can make it difficult to save, for many people, excessive spending is simply a habit that can be changed with little effort. It’s easy to feel overwhelmed by the thought of saving, especially when it seems like a daunting task. However, taking small, manageable steps today can help set you on the path to a secure financial future. Getting started is easier than it seems, and there are simple strategies that can help you begin saving right now.
Tip #1: Put it aside
When considering a major purchase, like a car, or even a smaller one, like a pair of shoes, try pausing for a week or two before making a decision. Give yourself time to reflect and think it through. After that time, if you still feel it’s the right choice, move forward knowing it’s a well-considered decision, not just an impulse buy. If not, skip it. Most of us have made at least one purchase we later regretted—if not more. Imagine if you could get that money back and have it earning interest in your savings account instead. Over time, it could really add up.
Tip #2: Pay yourself first
When you receive your paycheck, you likely prioritize paying your mortgage or rent, your car payment, your insurance, and so on. But somewhere near the bottom of that list is you. Why? It’s probably because you know there’s no immediate penalty for not paying yourself. It’s time to change that mindset and hold yourself accountable. Make saving a priority by putting money into your savings account first, before covering your other expenses. By taking care of yourself upfront, you’ll eliminate any excuses by the end of the month. As long as your monthly bills don’t exceed your income, you can easily set aside a comfortable, consistent amount to save each month.
Tip #3: Shop smarter
In our fast-paced lives, it’s easy to grab a quick snack or coffee when it’s convenient. But if you stop at a convenience store for a 12 oz. coffee every morning, you’re likely spending at least $2.00 daily—and that quickly adds up. Have you ever considered how much you could save by making your own coffee? And what about the power of interest on those savings? If you saved just $600 a year in a basic savings account with a 5% annual return, after 30 years, you could have over $30,000 (after taxes). That’s the impact of consistently saving—even small amounts. Just $2 a day adds up to well over $600 by the end of the year. Start paying attention to those “small” daily expenses—they really can make a big difference over time.
Tip #4: See your destination
They say hindsight is 20/20. Imagine this: if 10 years ago you had started saving just $200 a month in a shoebox under your bed, you’d have $24,000 by now! While you can’t go back in time, you can certainly look ahead. Take advantage of free financial calculators available online and start plugging in numbers to see where your savings could take you in 20-30 years, depending on how much you start saving today. Once you see the potential, saving money might just become your favorite hobby—a fun competition with yourself to see how much you can grow your future net worth.
Tip #5: Ditch the shoebox
Speaking of that hypothetical shoebox under your bed, while the money inside might gather dust, it certainly won’t earn any interest. And while it is unlikely that you’re storing cash in a shoebox, it’s worth considering where and how you’re saving your money. Traditional savings accounts do offer interest, but there are other options that could potentially yield higher returns. You’ve probably heard of money market accounts or certificates of deposit (CDs), but might not be sure exactly what they are or if they’re right for you. It’s important to educate yourself about your options and make informed decisions when it comes to managing your finances.
Saving for the future doesn’t have to be overwhelming. By making small, intentional changes in your spending habits and prioritizing savings, you can start building a more secure financial future today. Whether it’s putting money aside before spending on other expenses, making smarter purchases, or exploring better savings options, every step you take brings you closer to your goals. Remember, it’s not about how much you earn—it’s about how wisely you manage and save your money. Take the time now to plan for the future, and you’ll be amazed at how much you can achieve over time. Start today, and watch your financial well-being grow.
It’s Time for ‘The Talk’
Valentine’s Day reminds us now is the perfect time for ‘the talk’ with that special someone in your life. And since this is a financial blog, I obviously mean the money talk. True, communication can be challenging, and the topic of money is a sore spot for many people. But the more you can speak honestly about money, the less fear and anxiety will be wrapped around it. The dialogue may look different based on your relationship status and life stage; regardless, it’s important to have the conversation now, as well as make room for future conversations.
You may benefit from making individual financial balance sheets, including all your debt and savings, before you begin talking. This way, you’ll have a better idea of your net worth. You may also compile a list of money questions or concerns you’d like to cover. It’s worthwhile to discuss your current financial situation, share values and long-term goals, and talk through spending and saving habits. Not being willing to talk about money can lead to big issues, both now and down the road. Open communication, though, gives the opportunity to create shared vision for the future, tackle problems as a team, and have accountability for your financial decisions.
Determine your own money values. This is where you’ll examine if you value saving or spending, as well as think about the various lifestyle standards you have. If you’re single and value the ability to travel, you’ll likely take that value into a relationship. Potential partners may discover conflicting values. Married couples may disagree about saving for college for their kids versus boosting their own retirement savings. It’s ok to disagree, but finding common ground is key. And keep the big picture in mind: creating safe space for ongoing dialogue about a positive financial future.
It’s also critical to come clean about your financial baggage. If you have student loan debt or a spending habit you’re having trouble kicking, hiding the issue will only compound it. (Literally – interest either hurts debtors or helps savers, but it doesn’t sit still.) Once you’ve talked about where you’ve been and where you are, look ahead. Are there any financial obstacles ahead? What are you hoping to do with your money in the future? Highlighting these can help you better see how to actually plan for the future.
Of course, not every money conversation needs to be so in-depth, but it helps to check in at least once a month to ensure you and your partner are on the same page, spot any problem areas quickly, and maintain momentum toward your goals. Your first financial talk together may be a little awkward, but with time, you’ll become fluent in a shared money language.