How Do I Save Money?

Set up an automatic deposit, which directs a set percentage of your paycheck into your savings account every time you get paid.
Collect spare change in a jar or piggy bank at home, adding to it daily or weekly.
Create a budget and designate a specific amount for savings each month.

Planned and Unplanned Expenses

Planned expenses are things like rent, a phone bill, or a car payment. Unforeseen expenses are those that arise without warning, such as a last-minute gift, auto repair, or hospital bill. Unexpected spending can have a serious effect on people's finances. For example, if you break a bone and need medical treatment, you have to come up with money that you weren’t prepared to spend. If you don’t have spare funds for this kind of expense, you will have to take out a loan and run the risk of getting into debt. Your income may also suffer if you end up missing work because your budget will now include additional expenses.

Emergency Fund

A savings account is used for unexpected costs. The objective is to have sufficient funds in the fund to pay expenses in the event of an unforeseen circumstance. An emergency fund should contain at least three to six months' worth of unforeseen costs.

Tips on How to Save Money

Determine your savings: Decide how much you need to save for a certain objective, such as a college education, a new automobile, or a trip.
Automate saving: Establish a weekly or monthly transfer from your checking account to your savings account. You won't have to remember to send the money yourself this way.
Make changes to your budget: Examine your budget to identify areas where you may need to reduce spending. For example, you may need to eat out less in order to save money.
Have patience: It may take some time to save for a major purchase, but the effort will be worthwhile in the end. Remain committed to your objective and fight the urge to spend your savings on other things.

Planned and Unplanned Expenses

Tips on How to Save Money

Determine your savings: Decide how much you need to save for a certain objective, such as a college education, a new automobile, or a trip.

Automate saving: Establish a weekly or monthly transfer from your checking account to your savings account. You won't have to remember to send the money yourself this way.

Make changes to your budget: Examine your budget to identify areas where you may need to reduce spending. For example, you may need to eat out less in order to save money.

Have patience: It may take some time to save for a major purchase, but the effort will be worthwhile in the end. Remain committed to your objective and fight the urge to spend your savings on other things.