There are several effective ways to save. Saving automatically is considered one of the easiest ways to successfully save money; it is sometimes called “paying yourself first.” When money comes out of your income and goes directly into an account that is not your primary spending (checking) account, you don’t have to make a savings decision every pay period, but your savings account balance will increase.
 
A popular way of automatic savings is having money go directly from your paycheck to a 401(k) or other retirement plan offered by your employer. This is the most well-known way to save for retirement (or semi-retirement!) Some employers will “match” all or part of the amount you are putting into the account.
 
Another way to automatically save is to establish a recurring transfer. Generally, you set up a transfer from an account where your income is deposited to a savings or investment account. The savings account is usually an account that is not as easy to access; it may pay some interest on your balance. Some banks and credit unions offer a “Christmas” account option, a savings account with very low minimum balances.
 
Some employers and many payroll services allow employees to split their direct deposit into more than one account. A split deposit is a way to have part of your pay deposited to your spending account and part to your savings account. This is an excellent way to pay yourself first.

​In addition to these automatic savings methods, you may want to consider scheduled transfers to increase your savings rate. Employees with variable pay often find this works better than an automatic savings method. Evaluate your checking account balance each pay period or monthly, being sure to account for all expected spending. Then determine how much excess you would feel comfortable transferring to your savings. For example, if your monthly expenses are usually $3,000, and you want to keep a $4,000 minimum balance, seeing a $4,200 balance means you can transfer $200 to savings or pay down a debt by $200. When you see that extra $200, are you tempted to spend it instead of transferring to savings? Review your goals before you start this process. Thinking about the high interest rate you’re paying on past purchases or the vacation you want to take before checking your financial situation can help you stay on track.

A less common method of savings today should still be considered—save your loose change or extra cash. This method is particularly effective for people who have some cash income or use a cash method for budgeting and spending, like the envelope method. Essentially, you save the loose cash you have at the end of each day, or if you have extra money in your envelopes at the end of the week or month, you save it. Every little bit adds up!
 
How are you saving for your whealthiness goals?

Many Americans do not have any money set aside to cover a sudden expense and many people struggle with debt and bad credit. We aren’t taught how or why to save. In fact, our society encourages consumerism at any cost. It’s much easier to spend than to save! Savings is a habit, one that we can practice, getting better and adjusting, creating a lifestyle of financial confidence.
 
Learning to save is crucial to pursuing our goals, finding financial peace of mind, and aligning our spending with our values. It can seem overwhelming if you have never made a savings plan. But it’s never too late to start saving; start where you are.
 
This week is America Saves Week. ASW is a call to action to commit to savings by making a pledge, setting a goal, and creating a plan. The top savings goals in prior years included funding or increasing an emergency fund, paying down debt, and saving for a vacation or special event. Achieving these goals reduces financial fragility.

The benefits of savings include financial stability, feeling prepared for unexpected expenses, and having more money. Yes, I said having more money! If you have debt or use debt to pay for vacations or emergencies, you are paying interest and/or fees for all those purchases. When you stop paying extra for your purchases and improve your credit, you will have more money to spend as you want! Intentional spending and saving also allows us to feel less financial stress and support our values through our spending.
 
What are you saving for this year?

​Have you recently been bombarded with ads and suggestions for Valentine’s Day? While the origins of Valentine’s Day may have been different, today it is primarily a commercial observance. Consumers are accosted with ideas to show their loved ones how much they care by buying things they don’t normally purchase.
 
If you have debt (besides a mortgage and car loan that are up to date) or no emergency savings, you have no business buying gifts for yourself or anyone else. Even if your finances are in order, I propose that we consider what we want our Valentine’s Day to be and find three words that fit which do not require us to be consumers. 

​The three words most of us think of are “I love you.” Valentine’s Day is a perfect opportunity to express our gratitude and love. Write a note, letter, or if you have the talent, a song or poem to express your love. As a family, you might create a play or have a talent show! Or you could design a “newspaper” to send to other loved ones.
 
“No, thank you” is appropriate when someone asks if you want something for Valentine’s Day. You can follow that with the suggestion that we don’t need to give each other gifts for this consumer holiday. I think this works best when we are secure in our relationships and make ongoing efforts to show each other we care in ways that matter to the other person.
 
When someone asks what you want, “I have everything” is suitable. If you feel they will want something anyway, this might be a good time to discuss your budget or a goal you are saving towards. Is another tie or red hand towel that you wouldn’t have bought otherwise important enough to delay something else you need or want?
 
I’m not suggesting that you ignore Valentine’s Day completely (unless you want to.) There are lots of things we can do without spending more money. “Let’s play UNO”, or whatever games you have, can give you some fun time together.
 
If you and your loved one are trying to get healthier, “let’s go walking” (or hiking, biking, skating, etc.) could be a great option to spend time together while working on another goal. You can plan your path to stop and take photos to commemorate the day.
 
If one person in the household typically does most of the cooking, “let’s cook together” similarly gives us time together. Try recipes you wouldn’t tackle on your own, like one with lots of steps or ingredients. While you experiment together, others can help with “clean as you go,” learn how to help, and maybe take over some of the kitchen duties.
 
If none of these are quite right for you, start with “let’s try…” or “how about…” to find your own idea. Be open to experimenting. Remember to have fun! Give lots of hugs and kisses. And maybe have some leftovers ready in case that recipe didn’t turn out.
 
What’s your favorite whealthy way to celebrate the day?