To solidify your savings habits, you should check whether your money is in the right type of account and set practical savings goals. Moyo Studio/Getty Images
To save money, review your spending and see if there are areas where you can cut back on spending.
Think about whether your money is in the right place and check whether you are earning interest in your bank account.
If you’re saving for a specific purpose, set practical guidelines for your goals.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by an editor.
Whether you’re starting to set aside money for an emergency or saving for a down payment on a mortgage, examining your savings habits can be an essential part of reaching your financial goals.
If you don’t know how to save money quickly or have had trouble saving in the past, here are eight tips from financial experts that you can use.
1. Keep an eye on your expenses
To start saving money, you first need to look at where your money is going.
“Often people find it difficult to save because they do so only after they have taken care of a lot of expenses – after paying their mortgage, rent, car, groceries, and so on. They then realize they may have nothing left. “I always suggest that you keep track of your spending because it will help you find money to save,” says Patrina Dixon, certified financial advisor and owner of P. Dixon Consulting, LLC.
You can record your monthly expenses using a budgeting app, personal finance software, or a notebook. Some expenses need to be paid every month, such as rent or utility bills; these are considered essential expenses. Non-essential expenses are things that you don’t necessarily have to pay every month and that depend on your wishes, such as entertainment and dining out.
Read too
Since I started keeping a budget book, I’ve been able to reduce my expenses by 20 percent – and I’m now investing money in ETFs
Review your spending to see if there are specific categories where you can make adjustments each month. You could also familiarize yourself with the 50/30/20 budget rule or the 70/20/10 budget rule.
2. Plan your shopping trips
If you’re looking for ways to limit your grocery spending, Dixon suggests planning your groceries in advance so you can get everything you need at once. This can also be helpful for saving gas if you usually go shopping frequently or don’t live near supermarkets.
3. Looks for ways to enjoy small pleasures but at a reduced price
Reducing non-essential expenses doesn’t necessarily mean you have to give up things that bring you joy. Instead, Dixon recommends reducing the frequency of each purchase.
For example, let’s say you’re a gourmet coffee lover. Alternatively, if you buy coffee at a coffee shop every day, you could go once or twice a week and add more to your savings.
4. Explores various savings account options
High-interest savings accounts, money market accounts and savings bonds are all interest-bearing bank accounts that you can use to save and increase your money.
High-interest savings accounts are similar to regular savings accounts found at traditional banks, but offer more competitive interest rates. Money market accounts differ from high-interest savings accounts and savings bonds because they typically offer the ability to use ATM cards or debit cards. With a savings bond, you lock in your money for a specific term and receive a fixed interest rate. Which savings account is best for you will likely depend on when you need to access your money.
Read too
That’s why you need three different bank accounts, says this financial expert – and reveals what they are
Scott Stanley, certified financial advisor and founder of Pharos Wealth, recommends setting up an automatic transfer from your checking account to a savings account every time you receive paychecks. In this way you can save money without much effort.
5. Make sure you use your checking account correctly
The purpose of a checking account is to manage daily expenses.
“The majority of your direct deposits can go into this account so you can pay your car, your rent, your mortgage and various bills,” explains Dixon.
You should keep short-term savings for specific goals and emergency funds in a separate account. Stanley also points out that you’ll likely get a higher interest rate with a high-interest savings account than with a checking account.
6. Establishes practical rules for specific goals
Maybe you want to save for a specific financing goal, such as a vacation or a new car.
To make your goal more tangible, Stanley says you can estimate how much you’ll spend on your goal and set a time frame. Then you can review your budget and see how much you can set aside each month to make the goal more tangible.
If you’ve found it difficult to save for your goal, you can lower your expectations by extending the time frame or choosing something with a more realistic cost.
7. Consider a separate account for a specific goal
If you want to track your progress toward a specific goal, a savings account with financial planning tools is right for you. Some high-yield savings accounts allow you to mark your goals and track progress. Another option is to open a second savings account to track your progress.
8. Check your budget regularly
Once you’ve stuck to a consistent budget, it’s time to review your progress. If something doesn’t go according to plan, you can always change it. You should also make adjustments if you recently received a raise or bonus.
Read too
Financial expert Jessica Schwarzer reveals: I regularly invest my money in these eight ETFs