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Saving money is important, but it’s easy to neglect this practice in favor of newer, flashier purchases. So, one of the easiest ways to make sure you’re actively saving money each month (or twice a month) is by setting up processes that you don’t need to think about. Here are three easy ways to save money without thinking about it, that you can put to use today.
Set up an auto-transfer
One of the best ways to automatically save money without thinking about it is to set up an automatic transfer from your primary source of income. If you have a standard job, you likely get paid automatically one to two times a month, usually into checking account. To automatically put away some money, set up an automatic transfer from your checking account to a savings account that takes place immediately in the days following when your paycheck hits. The rule of thumb is to save 10% of your income each month, and put it away in some sort of savings account. That way, you’re able to invest in your future, and put away some money for a rainy day, or for retirement.
Use investment apps
Another great way to save money without thinking about it is by using investment apps. There are many different ones out there, but the best investment apps make it as easy as possible you to save money, by making your money work for you. Typically with these apps, you’ll have to do some sort of set up, where you specify an amount of money that you want to transfer each week, biweekly, or monthly to get transferred into your investment account. Depending on the app, you can also choose where you’ll be investing the money (in stocks, bonds, etc). Some apps also have a unique “round-up” function, where you link the app to your primary spending account, and for every purchase you make, the app rounds up the amount to a full dollar amount and puts the extra change into your investment account. It doesn’t get easier than that!
Cut your recurring monthly expenses
Another way to save money is by taking a look at your current monthly expenses and seeing where you can cut back. Yes, that music streaming service might only be $20 a month, but over a year, that comes out the $240. If you cut that expense, you can pocket that $240 into a savings account, or an investment account, and keep it for the future. These little expenditures may not seem like much, but the secret to long term savings and wealth is to constantly be thinking about the future.
The best spot to get to with saving money is where it becomes something that just happens in the background and you do not have to actively think about it. If you set up some of these practices, you’ll be able to accumulate wealth in a consistent and reliable way, and be able to build up a healthy savings account.
