Get nitty gritty with your spending and make a plan
First things first: Before you can save, you have to understand how much you’re currently spending, according to Marcy Keckler, the vice president of financial advice strategy at Ameriprise Financial. By having a clear picture of your finances, your time frame, your current savings, and your expenses, you can start to make adjustments. “A financial plan can guide you through good times and bad, and in expected and unexpected situations,” she explains.
Set up automatic transfers
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Are you one of those folks who can’t hold onto cash because you’ll blow right through it? A bi-weekly or monthly paycheck showing up in your bank account might be difficult to resist, then. That’s why Keckler suggests protecting yourself from temptation by setting up automatic transfers to your savings. “Putting away a set amount of money automatically and at regular intervals ensures a portion of your income is saved each month,” she says. In addition to removing the guesswork from savings, she notes that you won’t miss the extra dough because it will feel as if you never had it to begin with. Don’t miss these financial terms everyone should have memorized.