3 Tips for Increasing Your Savings That Don't Involve Making More Money

Have you ever read those blogs that talk about ways to increase your savings and the biggest takeaway is “make more money?” I have a real issue with this for a few reasons. Number one,THANK YOU...for stating the obvious. Second of all, making more money is only half the battle,  because if you make more but don't change any of your habits, you will find yourself in the same situation— you just make more. It's very easy to find new things to spend money on if you're not careful. For a lot of people, saving more money is about intentionality. It’s about making it a priority and the small sacrifices for long-term security. You have to really set yourself up for success with systems that make it difficult for you to fail.

You might be thinking, "well why should I save, I'd rather enjoy my money now?" Let’s change your mindset! Here’s why you should save... 

• It can lower your stress levels. 
• Think about it. If you have an income shock (a hiccup in your normal income sources) or a spending shock (an unexpected expense), knowing you have money to cover you would make these much easier to deal with. Let’s reduce your stress levels. The more you save...the less you stress! 
• It creates some independence.
• Everyone talks about financial freedom. Imagine a situation where you don't feel stuck in a job you hate because you have enough savings to carry you over. You live life on your own terms when you've prepared your finances. 
• It keeps you from overpaying.
• When you prepare and have sufficient savings for the things you want you can buy them in cash and avoid running up the credit card bill. Carrying a balance on a credit card means you pay interest. Remember: interest is the cost of borrowing money. Why pay interest when you can pay upfront? Plan. Save. Buy. 

Alright,  so now you know why it's important. Here’s a plan! Let’s make it happen. 

Pay yourself FIRST

You've probably heard this one before. Think of this as prioritizing your savings. This means putting the money into the savings account as soon as it becomes available. Account for how much you plan to save before you allocate your discretionary spending (things other than necessities).

AUTOMATE. AUTOMATE. AUTOMATE

Once you know how much you plan to save monthly, set up recurring payments to your savings account. This is one where you have to know yourself. If you know that seeing the money in your checking account will tempt you, set up the direct deposit in your company payroll system that way it never touches your account. 

Small amounts make a BIG difference.

As with other areas of life, it helps to break a larger goal into multiple smaller goals. Take a look at your last couple weeks of spending. Was there anything there you could have gone without? Going forward, try saving an amount you won't miss. Remember,  it doesn’t have to be a large amount.

A few years ago, I started doing weekly contributions into my Roth IRA of $20 per week. Every six months I go in and increase the contribution by either $5 or $10. I'm amazed at how much those small amounts truly add up. 

Now execute: Set a new savings goal for the next quarter. Try breaking it down into smaller amounts and AUTOMATE. Let me know how you do so we can celebrate. Let’s get it!