6 Ways to Start Making Your Money Work For You
It's the same story every January.
You kick off the new year with an aggressive financial resolution related to saving money. By mid-February, you wonder if you'll ever grow your account enough for a down payment on a home, a new car, or to pay for a second honeymoon. After a few missed savings deposits, you tell yourself to "try harder." By March, you've given up on your goal.
Continuing to set the same money goals that end in failure can make you feel like you've been cast in the lead role of "Groundhog Day" — you keep waking up to the same dismal results no matter how much you want to escape the exhausting loop. It's happened to the best of us.
But don't despair!
If you can start thinking about money in a new way, it's possible to make your money work for you instead of the other way around. All it takes to start building financial momentum is your willingness to make a few small tweaks to your spending habits.
Get ready to wake up to a new day with improved financial results by adopting these smart money moves in 2021.
1. Change bank accounts
Make the most of your bank account by avoiding pesky fees. If you're unable to maintain minimum balance requirements, consider opening a no-fee checking account. Together's Free Checking Account has no minimum balance requirements, no monthly service charges, and it comes with a free Visa® debit card. This simple switch can stop money leaks fast.
2. Make perpetual payments
While you don't actually want to make a car payment for the rest of your life, acting like you do can result in significant savings.
Here's how it works: After you make your final payment on a debt obligation, like an auto loan, continue to make that payment to your savings account. You're unlikely to feel a change to your lifestyle, and this simple tactic can pay dividends for years to come.
3. Call your service providers
Consumers often feel they're at the mercy of service providers like internet and cell phone companies. And it's understandable. If you don't pay your bill on time each month, your service might be terminated or your credit score could be negatively affected. But contacting your service provider to negotiate rates could level the playing field, especially if you have a track record of timely payments. Contact the company's customer service department to negotiate better rates based on your loyalty and payment history — and let them know you're comparing prices to find the best rates.
4. Partner with a saving buddy
Saving money is more fun when you set goals with a like-minded family member or friend. You can encourage one another when you're tempted to spend rather than save. A buddy can also help hold you accountable, help get you back on track, and even celebrate achievements when others might not understand why you've set specific financial goals.
5. Gamify your goals
There are several online games, tools, and apps to help motivate and make saving for the future a fun activity. But, you don't need an electronic device to turn spending less into a profitable game. Stickers and mason jars are simple tools you can use to make working toward your goal a fun experience. Act like a kid and add a sticker to a tracking sheet for each step you take that moves you closer to your goal. When you're halfway to your goal, give yourself a low-cost reward. Or use a glass jar to collect quarters for the next six months. If you fill it sooner, use 10% of the saved amount on yourself.
6. Time your spending
Black Friday and Cyber Monday sales are super hyped every year, but it's the post-holiday sales that can offer some of the biggest savings. Instead of front-loading seasonal spending, set aside half of your holiday budget for items you can buy for up to 90% off after the holidays. Examples include gifts for next year, decorations, and even clothing.
These smalls actions can produce sizable returns without disrupting your lifestyle.
Explore other ways to increase your financial power by scheduling a meeting with a financial advisor through our Together Investment and Retirement Services group. You'll find a knowledgeable, registered representative ready to discuss your specific situation and tailor a personalized savings plan based on your financial goals.
