Saving money is all the buzz in today’s financial markets, but it isn’t simply a catch or buzzword at all. Savings is a big deal especially when you’re talking about making major purchases or having enough cash to cover expensive repairs, medical bills, or whatever life may throw at you.
Stashing cash may sound simple enough, right? After all, isn’t it just about putting a little extra away every once in a while? Sure, but here are some great tips on how to save for the things you want.
1. Cut Unnecessary Expenses
There are differing opinions about cutting out the “daily Starbucks run,” but an increasing number of personal finance pundits are saying to keep it but cut back. This goes with practically any non-essential spending.
If Starbucks or dining out is part of your daily or weekly lifestyle for you and your family, then it may not be such a bad thing. But can you cut back? Even one meal per week or one Starbucks drink can save you $5-10 which can really add up if you actually sock it away!
2. The Physical Act of Saving
Where most “savers” go awry is forgetting that you actually have to physically make an effort to put money away. “Saving” money on groceries, utility bills, or non-essentials is great, but you must put forth the effort for that money to be any good.
That effort can be as simple as creating a dedicated savings account, setting up an auto-draft for your funds, and leaving it alone. Alternatively, you can leverage websites such as Finhabits, Stash, and Acorn to put those funds away while letting your money work in the equity markets.
3. Snowflake Saving
Snowflake saving is an idea that comes from snowflake debt relief where debtors pay down debts by paying slightly more each month in order to put more funds towards principal and less towards interest. The concept remains the same with saving: a little here yields a lot there.
Snowflake saving puts your money in savings gradually and largely without you paying any mind to it whatsoever. Plus, if you’re using one of the investing websites mentioned above, you can leverage dollar cost averaging, the time value of money, and compounding interest to further increase what you put away. After all, a snowball starts with a snowflake!
4. Put Your Money Towards Your Dreams
For many Americans, small savings can yield big dreams down the road with some patience and self-control. In today’s age, however, virtually anything and everything can be financed from cars to homes to home improvement purchases.
If you’re looking to purchase a home, give Tidewater Mortgage Services a call. Our knowledgeable loan officers can help you align your savings and your lifestyle with a mortgage product that is right for you in order to get the things you’ve worked so hard to save for. Our quick online application can get you pre-qualified for a mortgage when you need it!
