Jean Chatzky makes saving more money relatively pain free.
NBC Today Show’s financial editor, Jean Chatzky, knows how to break down complex financial topics so that everyone can put them into action. And for 2015, she’s shared a handful of creative ways to save more money. Better yet, they’re nearly foolproof.
Saving can be difficult, or it can be easy. Here are 5 ways to save more with less effort, in ways that you probably hadn’t thought of:
#1: Open an Independent Savings Account
You probably have one savings account already. But if you’re like many people, it’s tied to a checking account. This can be convenient, but it can also lead to overspending. If you see what’s there, it’s easier to spend it.
Jean says you need one savings account that’s not connected to any others. In fact, she suggests telling the bank to “de link” it. That way, you won’t see the balance every time you withdraw money or check other balances at an ATM.
#2: Pretend that Gas Prices Aren’t Going Down
We’ve all seen how prices at the pump keep going down, down, and still further down. According to her estimation, one person commuting to work daily could save as much as $600 a year over 2014.
Instead of allowing that extra to stay handy and spendable in your checking account, set up an automatic transfer to move that money into savings. If you’ve kept track of fuel costs in the past, you’ll be able to calculate how much less you’re spending now. And if not, you can estimate.
Creative saving is as close as your smartphone.
#3: Use the Saved Plus App to Save Based on What You Spend
What if every time you spent money you saved money, too? That’s what the Saved Plus app can do for you. Jean explains that this tool automatically sends money into savings whenever you make a purchase, all based on parameters that you decide.
If you want to save the equivalent of 10 percent of everything you buy, all you do is set the savings percentage on the app. Then when you spend $100 on groceries, $10 is automatically moved into your savings account. It’s effortless saving that you don’t have to think about.
#4: Increase Your 401(k) Contribution by 1 Percent
It might not sound like a lot, but increasing your 401(k) contribution by only 1 percent can really add up. For people under the age of 50, the maximum annual contribution is $18,000 in 2015. If you’re over 50, you can add another $6,000 in catch-up contributions.
Saving anything less than the maximum means you still have room to bump it up. If your annual income is $50,000, 1 percent is only $500. Spread out over 12 months, you’ll never miss it.
Watch how your money can grow in as little as 52 weeks.
#5: Take Jean’s 52-Week Saving Challenge
The 52-week saving challenge is an interesting way to not only save money, but to train yourself to be comfortable with saving more. It’s easy to get started. And even at its toughest, nearly anyone can do it.
On week-1, you’ll save $1. On week two, save $2. And on week three, save $3. Continue on until you reach the 52-week mark where you’re setting aside $52. What you’ll have at the end of the year is about $1,400, which Jean recommends moving into an IRA.
Tricks can’t make more money appear, of course, but they can help you curb spending that you might not realize is happening. When gas prices go down, it’s easy to spend the difference on more lunches out. But when you head it off at the pass, the money will go where it’s much more useful – into your future.
NewRetirement has tools that help you prepare for that future. You can estimate what you’ll need to retire using our retirement calculator, and if you’re looking for a financial planner, we can help with that, too. See what NewRetirement can do for you today.
