Increase your savings in 2017!

Saving money can be really hard.  There are a multitude of reasons why: maybe you don’t have enough money between paychecks to have anything left to save, or maybe you just lack the self control to save rather than buy yourself that new sweater.  Whatever the reason, I want to help you make a savings plan in the new year!

1. Make a plan now so you can stick to it in the new year.  If your goal is to save 10% of your income or 50%, try to make a plan now so you can get started on your path toward meeting that goal.  On average, most articles recommend saving 10% of income, but even that can be a struggle.  If you have a hard time, start small and commit to saving extra if you have it.
2. Automate your savings – I highly suggest contributing to a 401K (especially if there is matching) with your employer!  If not, automate the savings yourself.  My first big savings goal for myself was contribute the maximum allowed to my IRA ($5,500).  That’s $458.33 per month.  Set up an account with an easy to use IRA, and set up an automatic contribution so that money just disappears after you are paid.  Then it is like you never had it.  My favorite savings accounts are Betterment and Wealthfront.  I will write a comparison post between them, but basically, I find Betterment more user friendly, and Wealthfront has a little bit lower of fees (well they have more money managed for free, then the fees are about the same).
3. Try to resist the small purchases.  If you are infamous for coming back with an afternoon coffee, think about it like this:  Will I be happier if I buy a $4 coffee today, or if I add $4 more dollars to my savings account.  Many savings accounts can earn 3-10% interest, which accounts for a full savings account down the road if you drop extra dollars into savings vs. buying things.
4. Make little changes.  Bringing your own lunch typically saves $2-15 per meal versus going out to eat.  I know people who go out every day and to me it seems like throwing money away.  We cook larger meals and then package them to bring them to work.  If you have trouble planning meals, go sign up for $5 Meal Plan!  They do the work for you.  Putting that $100 birthday check into the bank instead of spending it frivolously can turn into a fatter savings account down the road.  Think about eating in rather than eating out.  Don’t buy something you want, give yourself a week to think about it and if you still want it, try to find a coupon after you’ve decided it is something you actually need.
5. Try using coupons!  Some people are extreme couponers (not sure I would go that far) but saving yourself a few dollars each week with a couple coupons for things you are buying anyway, can add up quickly.  For example, if you use coupons to save just $5 on groceries each week, that is a savings of $260 over the year!  Note: Do not buy things just because there is a coupon for it – you will end up spending more money buying extra things than if you hadn’t bought it at all.  I like Ibotta for getting rebates on items I buy already!  It is easy to get started and you just scan the product and your receipt and you get the rebate redeemed as cash once you’ve redeemed enough offers.
6. Try generic.  There are certain things I won’t buy generic, but other items are exactly the same except they can mean big savings.  I tend to try a generic of a product I typically use.  If I don’t notice a difference, I use the generic from there out.