To save or not to save? Whether your goal is to save for a home, a dream vacation, or you just want to be better prepared for the future, finding a reason to save is easy. The hardest part is just getting started. Here are a few ways to get and keep the savings ball rolling:
Start early
The younger you start, the easier it is to become a successful saver. It's also never too early to save for retirement. With the power of compounding interest, saving early for retirement could be a million-dollar difference.
The amount doesn't matter
Even if you have a tight budget, you can still get in the habit of saving. Take any extra change and put it in a large jar, where it's difficult to get the funds. You'll be surprised by how quickly the money will add up if you keep adding to it.
Out of sight, out of mind
With today's convenient banking services, saving money automatically is easier than ever. Set up automatic monthly transfers from your checking account to your savings account. Arrange to have a portion of your paycheck automatically deposited to your savings or retirement account.
Pay yourself first
Make saving money a priority. Pay yourself first by putting aside funds from each paycheck to save. If you're fortunate enough to get a raise at work, put the extra money in your savings account instead of increasing your expenses and keep living as though you never got the raise.
Make a budget - and stick to it
Successful savers know where their money is going. To determine this, track your income and monthly expenses. Pay attention to memberships and subscriptions. Even small ticket items can add up quickly, and we sometimes don't even realize we have them. Put any leftover funds in savings.
Avoid unnecessary debt
One of the biggest barriers for savers is too much debt. Try to minimize debt, particularly high-interest credit card debt. Remember a simple rule: don't buy something if you can't afford to pay for it in cash.
Determine "wants" versus "needs"
We all like to have new things. While you may want a new car with all the bells and whistles, maybe your older vehicle can still get you where you need to go. When making a purchase, particularly a major purchase, consider whether you need it.
The most important thing successful savers know is that saving money won't just help you realize your plans; it also brings great peace of mind.
Have questions or need assistance?
If you have questions about this topic or need assistance with your banking needs, please speak to one of our knowledgeable staff at your local Bar Harbor Bank & Trust branch. We’re here to help you build a solid financial future.
