How much can you save over time?
Use this guide to understand the power of setting aside a little money with each paycheck to reach your money goals, prepare for emergencies, and build your nest egg over time.
“Paying yourself first” means setting aside a little money for savings with each pay period before deciding how you'll spend it. It’s a simple, yet effective way to save.
For example, say every two-week pay period you spend $50 dining out. If you saved that $50 using payroll allocation, in 10 years you would save more than $13,000 - and that doesn't even include interest.
The power of direct deposit with payroll allocation
By taking a few moments to set up direct deposit of your paycheck and allocating a portion of your paychecks to a specialty savings account, you can put saving on autopilot.
Learn more about direct deposit here.
Need help setting up direct deposit and payroll allocation? We can help! Here are all the ways you can contact our team.
Make Saving a Priority
24% of adults have $0 saved for an emergency. That means no money set aside for the car breaking down, a visit to the hospital, or the loss of a job. Even if you have enough money in emergency savings to cover three or more months of living expenses, you always keep saving for big expenses like a car or mortgage down payment, a vacation, or a home improvement. Keep going by saving for education or retirement.
Saving more by spending less
Here are some low-hanging fruits for cutting spending. For each of these tips, weigh what matters. If you love treating yourself to a latte as part of our self-care routine, cut something else you can live with out.
- Skip the coffee shop and brew at home. You could save hundreds switching from that daily tall latte to home-brew.
- Bring a lunch to work instead of dining out. The average American spends $1,043 a year getting lunch at restaurants. Making your own meals could save you about 42.8%, or $446.40.2.
- Dash for your own food. Save money over time by carrying out your own food rather than having it delivered to your door.
- Wait 48 hours before making online purchases. The internet makes it all too easy to make an impulse Amazon purchase. Wait two days or longer before making that purchase to see if you really do need it. Sources: 1Bankrate.com 2Usatoday.com 3Fortune.com
- Use cash: If you're going shopping or dining out, bringing a set amount of cash can force you to stick to a budget when your willpower may be weakest. Cut out extra subscriptions you aren't using: Analyze your credit card bill or use a tool like Rocket Money to discover where you may be paying for subscription services you no longer use. This coul dhelp you save hundreds of dollars or more a year.
Become an Expert Saver
Here are some tips to help you save more:
- Save half of every raise. Whenever you get a raise, automatically allocate half of it to go into a savings or retirement account.
- Have “no spend” challenges. Challenge yourself or a friend to see if you can go without spending money for a day, weekend or week. Or see who can spend the least in a month.
- Have money automatically transfer to savings. Pull a set dollar amount from your checking each month to continually save at a steady pace.
- Request your pay be split among your checking and savings so you save a little the second you receive a paycheck
- Set up account alerts when your checking account balance gets low so you avoid surprise overdraft fees.