Savings accounts are one of those things we never worry about until our car breaks down or our basement floods. The idea of taking money from an already tight budget feels like a pretty daunting task, but why does it have to be? Here is a simple list of tips to create a financial buffer.

Review your spending.

Our Money Management Tool makes setting a budget simple. The budget bubbles make it easy to see where your money is being spent. Identifying where you may be able to cut back makes budgeting feel less like jumping over a hurdle and more like frolicking through a meadow with Bambi.

Cut back on nonessential purchases.

Now that you have a picture of what your finances look like, it’s easy to look at areas where you might be over spending and cut back (or cut out all together) where you can. Some of these areas might include:

• Getting coffee only on pay days instead of every day.
• Going to lunch once a week rather than every day. Find out how much you could save with our Lunch Savings calculator.
• Going out to dinner with your friends/significant other once a month rather than weekly.
• Purchasing generic brand alternatives when grocery shopping rather than springing for name brand.
• Cutting back on your phone bill – do you really need the unlimited data plan?

Consolidate your debt.

Save on interest payments by consolidating your credit cards and personal loans into one payment. We make it easy to calculate your savings with our Debt Consolidation calculator.

Set a series of small goals.

Once you have a better understanding of your financial picture, you can start to set goals. For example, if you want to save $1,000 by the end of the year, your small goal could be setting aside a small amount of money each day – let’s say $3.00 a day. That’s doable and look how it adds up!

• In 1 month I will have saved $100
• In 3 months I will have saved $250
• In 6 months I will have saved $500
• In 9 months I will have saved $750
• In 12 months I will have save $1000
  

Be flexible.

Notice, each month you may not save a full $100. From month 1 until month 3, you are allowing yourself to have a $50 buffer between what you want to save and what might not be practical. If you end up saving $300 or more, great! This brings you ahead of your target for the month and it gets you closer to your year end goal.

Set up an automatic transfer to withdraw money on your pay days.

If you take money off the top of your pay check, you won’t even miss it. This makes your first priority saving money and it will make it easier to keep your savings goals on track.

Find another source of income.

If you have completed all of these steps and still find yourself pressed for cash, it might be worth your time to explore other options to keep your cash flow running. Here are a few ideas:

• Create a side hustle
• Take on freelance work
• Sell something
• Pick up a part-time job

Are you ready?

If you haven’t already opened a savings account, we would love to talk to you about the options available. We are confident that there is the perfect account for your way of life and saving strategy! Call to schedule an appointment or visit your local branch today.