It’s easy to say you’re going to save with each paycheck. Some even plan ahead and budget for it. But at the end of the month? Often that savings goal gets snuffed out by an unwelcome car repair, a surprise “night out” invitation, or a whatabargainwereallyneedthisnow item.
There are two things we do to insure that our savings accounts are consistently funded.
- We save first. Our automatic savings amount is not a lot, but it is set and it is paid first. If later we have an emergency or really do need to purchase something that exceeds our checking account balance, we can always transfer the funds. But guess what? It’s much more painful to transfer the funds than to not save for the month, which makes us think twice before we buy.
- We save automatically. On a certain day each month, shortly after the paycheck is electronically deposited, our savings amount is automatically transferred. I know it’s going to happen, so I deduct it just as I do our mortgage, health insurance premium, and other monthly bills. Paying ourselves in the form of a savings account is as much a priority as paying our bills.
Challenge yourself: The amount saved isn’t nearly as important as the self-discipline of routinely saving. Start small if you have to. You can always dump what’s leftover into the savings account at the end of the month. Gradually increase your automatic savings amount as you get more comfortable with the process.
What’s your favorite method of saving?
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This is exactly what we do! If we didn’t, I’m afraid there would be no savings!
That’s exactly what we do as well. Just a small amount per paycheck isn’t difficult, and we are so proud of ourselves when we make it to the next month without dipping into our savings!
We have part of Kevin’s paycheck directly deposited into savings. Then it is really automatic and out of my control.
We do this too. Hubby and I have our direct deposit split so part of it goes directly to savings and never hits the checking account. Plus we have an automatic transfer setup from checking to savings for some other savings goals.
I wish I had a favorite method of saving but we are so bad at this.