Are your savings goals stalling, leaving you short on funds for a down payment on a home or another big purchase? Saving money may seem impossible due to inflation spiking the cost of everyday items. However, with careful planning and putting these 6 foolproof money saving tips into action, you’ll be at your saving goal before you know it!
Money Saving Tips to Help You Reach Your Goals
1. Map out major purchases
Monitor annual sale periods to shop deals on major purchases like appliances, electronics, cars, and furniture. This method allows you to time large purchases with corresponding sales to save big bucks. Not sure if the deal is as good as it sounds? Mapping out major purchases gives you time to confirm a deal is worthwhile (or just holiday hype) by tracking prices over time.
2. Delay purchases with the 30-day rule
Avoid overspending and buyer’s remorse by allotting a set time frame between finding and purchasing an item, like 30 days. That 30-day period creates a buffer between potentially compulsive buying and gives you time to ensure the purchase fits within your budget goals. If delaying your purchase with the 30-day rule seems too long, you could shorten it to a week or 48 hours. Just make sure to give yourself a long enough cooling-off period to think the purchase over.
3. Automate savings
When creating a habit, making it easily repeatable can help increase the success rate. Make savings easier by automating the process with scheduled transfers from your checking to your savings account to help grow your savings without extra work. Another great way to automate savings is to utilize apps that do the work for you.
Many savings apps are intuitive and can take the guesswork out of when to transfer funds, helping to save you time and energy. Check out these three popular automated savings apps to see if they fit your savings strategy.
4. Calculate purchases by hours worked instead of cost
Sometimes being a successful saver means adjusting the way you think about spending. Rather than looking at just the price tag of an item, calculate the purchase by the hours worked. Putting a purchase into perspective by the amount of work needed to pay for it, rather than the dollar amount of the cost, can help you determine which items are worth buying and which aren’t.
5. Weatherproof your home
If your recent gas or electric bill has left you with sticker shock, it may be time to weatherproof your home. Avoid letting your hard-earned savings float away with the cool air escaping your home this summer. Instead, look for simple DIY YouTube videos for advice on weatherproofing and visit your local hardware store for materials to caulk or repair cracks that are driving up utility costs and chipping away at your savings.
6. Take advantage of your library
Saving money doesn’t need to be boring. Your local library is a treasure trove of free entertainment. With options like books, classes, e-books, audiobooks, and family fun events, there’s likely something for everyone in your family. Check out your local library’s webpage for their upcoming events this summer.
Adopting a savings mindset can feel overwhelming, but hopefully, these money saving tips make it easier for you to achieve your goals.
About Michigan Mortgage Lender, Julie Krumholz from Superior National Bank
Saving for a house? Homeownership may be closer than you think.
Julie Krumholz from Superior National Bank has been helping homebuyers with different financial backgrounds reach their homeownership goals for over 30 years. She’s experienced nearly every facet of the mortgage industry, from processing, closing, loan origination, underwriting, QC auditing, and even co-owning a mortgage brokerage firm. Julie uses her knowledge to match homebuyers with the programs that fit their needs and helps streamline the homebuying process.
Call Julie at 586-382-5482 for all of your home buying needs.
