Feb 04, 2019 / Money Tips

How to Save Money in 2019

Saving money is on nearly everyone’s to-do list. It doesn’t matter the time of year or time of life. Saving money is always in fashion. But it’s also easier said than done, which is probably why it’s such an ever-present pursuit. If you’re determined to turn over a new leaf with your savings habits in 2019, here are a few tips to help you save money.

Open a Deposit Account

If you’re going to save money, you need a place to put it. That may sound like an oversimplification, but having a savings account separate and apart from where you regularly draw money can help you keep certain funds off limits. And since you’re going to the trouble of finding a dedicated savings account, you might as well find one with the best interest rates around. Doing so will give you extra incentive to save and give you even more savings in return. It’s a win-win.

If you’re serious about saving, do some research and find a savings account, money market account, or term deposit that can help you with your goals. Here are a few key benefits of each account:

  • Savings Account – A personal savings account gives you liquidity, safety (your money is federally insured) and there is literally nothing holding you back.
  • Money Market Account – A money market account gives you the perfect mix between high interest and accessibility. And, like a savings account, a money market account is a no-risk savings plan, as your money is insured by the U.S. government.
  • Term Deposit – If you’re saving for a big upcoming expense and you have some time to put away some money, a term deposit can offer an even higher interest rate. You can withdraw your money from a term deposit too, but you may have to pay an early withdrawal penalty.

Make Spending (and Savings) Plan

To help put your savings goals in perspective, try an experiment next month. Keep all the receipts from every one of your purchases and divide them by category after the month is over. This will help you see where your money is going and how you can make cutbacks in your budget. And knowing how much you spend on food, clothing, travel, etc. can give you a good starting point for your budget categories.

With a budget, you can know where every penny of your income is going and exactly how much is being saved. If your savings plans in the past haven’t included a budget, you know it can be difficult to remember how much you’re spending and saving in a given month, let alone an entire year. This time around, give yourself a chance to succeed by having a budget from the get-go. Decide how much you want to save every month, pay your savings first, and stick to your plan as best you can.

Map Out Major Purchases and Save for Emergencies

Emergency expenses are savings killers. Whether it’s a car repair, house repair, or medical expense, people turn to their savings when they fail to plan for the unexpected. If you know you have a big expense coming up, map out your purchase by saving a little every month until you have enough. If your big expense happens once or a few times per year (like tuition or taxes), consider putting your money in a money market account. If it’s a few years away, put your money in a term deposit to earn the highest amount of interest possible. And always use a dedicated savings account to save for the inevitable, but always unexpected, emergencies expenses.

Small steps add up to big returns when it comes to saving money. And with these simple tips, you can get a leg-up on your savings goals in 2019.