Last week’s post described six ways to save money: pay yourself first, collect coins, complete a savings challenge, continue to pay a loan or bill, break costly habits, and bank a windfall. Below are six more successful saving strategies to “find” money to save to reach your financial goals:
¨ Crash Save- Decide that, for a month or two, you’ll buy only absolute necessities and save any money that remains after paying bills. At the end of the crash savings time period, treat yourself and buy the item(s) that you were saving for. Then resume your “normal” spending habits or set a new crash savings goal.
¨ Start a “Club” Savings Plan- Start a structured savings plan to save money over the course of a year for holiday or vacation expenses. Some banks and many credit unions still offer them. Unlike the “coupon books” of years ago, weekly savings deposits are often transferred electronically from a checking or savings account.
¨ Save Your “Extra” Paychecks– Mark all your paydays for 2019 on a calendar. If you are paid bi-weekly, in two months of the year, you will receive three paychecks. If you are paid weekly, there will be four months with five paychecks. Anticipate these months in advance and plan to save part of the “extra” paycheck.
¨ Save Excess Expense Reimbursement Money– Review your employer’s reimbursement policy. If you get a fixed sum for business travel expenses, instead of having to collect receipts, and spend less than the per diem amount, save the difference. Ditto for mileage reimbursement for using a personal car for business.
¨ Reinvest Interest and Dividends Automatically-Arrange to have dividends and capital gains on mutual funds reinvested to purchase additional shares rather than receiving a check for a small amount and spending it. This is a painless way to increase personal savings and, over the long term, the results can be spectacular.
¨ Participate in a Tax-Deferred Retirement Plan– Reduce your salary via payroll deduction to save for retirement and aim to take maximum advantage of employer matching. Money contributed to a 401(k), 403(b), or similar retirement savings plan and earnings on these funds grow tax-deferred until withdrawn in later life.