Does checking your bank account give you anxiety? If so, just reading this first sentence may be stressing you out. I get it. This can happen to even the best and most conservative of financial planners -even those of us who pride ourselves on being financially secure and having ample savings. 

Are the numbers in your bank account not matching up with the effort you put into getting your paychecks?

Has your frustration led to questions like, “How is this even possible?” Or, “Why is my income not covering everything?”

Maybe the idea of saving for exotic getaways or wish lists is so far-fetched that you can’t even begin to think about the concept of extra savings. 

This article is not just for those who have already got it all together, it’s for everyone.

Yes, it’s easier to approach financial planning before something goes awry, but if your situation is already less than ideal, these tips are easy to apply immediately. The beauty of these tips is that they are easy to set up once and then forget about. So, grab some coffee, get a notebook, and get ready to start saving.

We will discuss these 3 ways to be financially savvy and save:

1. Save small amounts consistently.

2. Save with life insurance.

3. Save by prioritizing expenses.

First Step to Savings

What do you want that money can give you?

Before you start dedicating funds to different methods of saving, it helps to have a goal. If you’re only saving for worst case scenario, “emergency funds,” you will have little motivation to start or continue setting money aside. If you have a clear reason, something you DO want, you will be much more inclined to value what you’re saving for, rather than what you are potentially losing. In other words, as with most situations in life, we are much more motivated to reach a positive outcome than to avoid a negative one. You gotta have a reason for saving. 

Start seeing money as a positive thing. Something you can have control over, rather than it controlling you.

Making sense?

Good. Now, on to the first way to save $$$.

1. Save Small Amounts Consistently

This is the easiest way to “set it and forget it.”

If you’re not already managing your bank account via online banking, you need to start. Download the app for whatever bank you use, and see what you’ve got as far as accounts. Most people at least have a default checking and savings account.

Now, designate a new savings account and title it something that speaks to you and will inspire you to keep funding it. If you want to save for traveling, call it something like “Maui Money” or “Travel Funds.” If you’re saving for a big wedding call it “Dream Wedding Savings.” Whatever is important to you at this time in your life, create a savings account for it. 

Second step is to decide how much you can realistically deposit into this account every month. This may be determined by how quickly you need to acquire funds for a specific goal, like a wedding. Or, it may solely be based on how much you can take out of your paycheck and still pay the bills.

Do the math.

Your wedding is in a year? How much do you need to put together your dream wedding? If it’s $10,000 then you need $833/month to make it happen. Maybe your significant other or your parents are funding half of it. In that case, you need a little over $400/mo.

If you make $3,000 a month and $2,000 goes towards bills, can you afford to commit $250 or $500 of the remaining $1,000 to your new savings account? It’s still in your bank account, but you won’t be tempted to spend it.

Even better, set these deposits for twice a month, the day after each paycheck. Keep the amount the same, but split it in half. Or, increase it to create a higher total savings every month. Boom, managing money made simple.

Bottom line- make it automatic. If you have to remember to transfer funds every month, you won’t do it. This is why most people pay bills with Autopay. Think of it as an auto-payment to yourself.

Once you set it up, you won’t even remember that it’s happening. Chances are you won’t feel like you’re short on money either.

Know what you will notice? How much your “New Car Savings” or your “First Home Savings” account has grown after 6 months.

2. Save with Life Insurance

Don’t check out and skim over this part!

Does the idea of life insurance bore you? Scare you? Lose your interest altogether?

It shouldn’t. Here’s why:

Being financially savvy means understanding how to provide for yourself and your family.

Being ignorant or hoping for the best doesn’t help anyone. ESPECIALLY when you have people relying on you. Since most of my readers are mothers, you at least have a son or daughter who relies on you, right? Wouldn’t you agree that if anyone asked, you would say you’d do anything for them in a heartbeat?

This is some real talk here; not to make a speech about buying life insurance (although you should), but because financial planning doesn’t just fall into your lap. You have to be intentional about it and plan ahead.

You have to think beyond the day you’re living now if you want to have any control over what your days look like in the future.

“Truth hurts,” as Lizzo says… So don’t stay stuck! You’ll only be hurting yourself. Instead, learn to be proactive and manage money better. 

Ok, back to how life insurance is a SMART way to be financially savvy.

I understand that most people correlate “life insurance” with spending, not saving. With how much it will cost you for something you won’t ever benefit from. 

Here’s a bit of TRUTH for you: 

Life insurance helps with your financial goals while you’re alive- it’s not all about death and depressing things you don’t want to think about.

Done right, life insurance works as another savings mechanism. Put a certain amount in every month, some of that goes towards funding the death benefit for your family, the rest of it builds cash value. You are creating a savings account within your life insurance policy. 

If that doesn’t make you feel grown up and financially savvy, I don’t know what will.

The best part, you can actually use this money. You can use it for your kid’s college fund, for a new car, a down payment on a house, whatever you need it for.

To simplify this idea: 

Buying permanent life insurance is an investment that you OWN. It makes you money. Just like setting up a new savings account, life insurance is a super easy way to set aside money every month and let it grow for you.

(Feel free to leave a comment or message me with any questions, I am licensed in insurance and qualified to talk about this subject!)

3. Save by Prioritizing Expenses

Which of your current expenses are worth the money and which aren’t?

Saving becomes a lot easier when you can free up funds that don’t need to be spent. If your goal is to set aside $50 per month, think about where you might be spending that money without thinking about it. How many times a month do you buy coffee on the way to work? How many nights do you eat out? Do you really need Netflix and Hulu and cable? 

Bonus tip: If you are one of the MANY people who think they can’t afford life insurance, do this exercise. It may be easier than you think to find disposable funds that you can invest more wisely.

To be intentional about saving, you have to prioritize long term over short term. Would you rather have a Redbox and a bottle of wine? Or would you rather have money accumulating toward your big-picture plans?

How to be Financially Savvy in a Nutshell:

“By definition, saving – for anything – requires us not to get things now so we can get bigger ones later on.” Jean Chatzky (The Corporate Sister)

To help get you started, check out my free 3 Step Guide to Better Saving for assistance putting these tips together!