We all know how important it is to save money with each paycheck. We even know that consistency is the key to savings and growth over time.
But many of us still struggle when that paycheck arrives or is transferred to our account. It almost seems as though it is gone before we know it and yet another month has passed without saving the amount we wanted to.
Below, we’ll go over 5 ways to save money from your paycheck and do it in a way that makes it easy to stick to your goals.
Check Your 401(k) Contributions
The first step is to check if you are contributing to any available 401(k) program through your work and learn how much you can contribute.
If you’re not contributing, this is the first thing you can do to immediately boost your savings. Many 401(k)s have matching contributions, so you are leaving money on the table if you’re not contributing up to the maximum.
Audit Your Recurring Monthly Bills
Carefully check your credit card and bank statements for recurring bills such as those for services or other programs. If there are any you find you just forgot about, go and cancel those then use that money to go to savings from that point on.
For other recurring billing, decide if you really need them all. Do you really need every streaming service every month? If not, cancel the ones you don’t need.
Anything you cut out and go immediately toward your savings with every paycheck.
Check Your W-4 Witholdings
Getting a big tax refund every year may seem great, but it actually means your withholdings might not be accurate. Instead of waiting for that money at the end of the year, you could be getting it each month and putting it into a fund or account that grows over time.
Take a look at your W-4 and confirm your withholdings are still accurate for your current situation. If there are any changes to your withholdings that result in more income per check, you can put that toward your savings and not even notice it.
Ask About Employer benefits
Are you paying for a monthly gym membership? Your employer or health plan may reimburse you for these types of expenses. They may even offer a fitness facility for you to use.
If so, you can utilize this reimbursement or free service and then put the money you were spending into savings. You’ll be saving money each paycheck without having to cut anything out.
Set A Savings Goal
This is important because, without a goal, it’s harder to stay motivated and stay on track.
We know savings are important, but it’s often hard to see the benefits as you’re doing it, especially at first.
Sit down and determine a goal that is both attainable and one that will motivate you. If it’s a longer-term goal, set smaller milestones along the way to help you stay motivated.
Saving money each month is always a wise financial move that pays big dividends the more consistent you are. By having goals, you can stay focused and consistent and reach your goals faster and without any stress.
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