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October 12 is known as National Savings Day. It’s a special event that reminds us about the importance of saving money and making it a priority in our lives. To celebrate, here is a refresher on the fundamentals of saving and how you can do small, actionable things now that will make a big difference for your finances.

Why Does Saving Money Matter?

There are many reasons to make saving a habit. Some of the most important reasons are:

• It helps you prepare for unexpected expenses. Life is full of surprises—some more welcome than others. Saving creates a safety net that can help you weather financial storms while minimizing the impact of debt.
• It helps you achieve your goals. Practicing good saving habits now can help you achieve your goals. Saving can help you buy a house, send your children to college, or enjoy a good retirement.
• It provides control over your life. Having money set aside “for later” allows you to exert more financial control over your daily life. In other words, saving allows you to make more choices rather than being forced by financial necessity.

How To Start Saving in Today’s Economic Environment

Anyone can start saving money. While covering your daily living expenses in the face of rising costs can be challenging, there are ways to put some cash to the side for the future. Here’s what we recommended to get started now:

• Create a budget. Track your income and expenses. Keep tabs on your spending to understand where your money is going and identify areas where you can cut back.
• Cut unnecessary expenses to free up money. When reviewing your budget, identify expenses that you can reduce or eliminate. Easy targets include dining out or canceling unused subscriptions.
• Set realistic goals. Start small! Begin with small and achievable savings goals, like saving a certain percentage of your income each month or building up a specific amount for emergencies.
• Pay yourself first. Treat your savings like a non-negotiable bill. When you get paid, transfer a portion of your earnings to a savings account before you spend on anything else.

Prioritize Your Savings Goals

It’s always good to have a goal in mind while you’re saving. In fact, you may have several goals in mind, and those goals may change from time to time. Here are a few pointers on how to approach your goals realistically:

• List and categorize your goals. Write down all of your financial goals, big and small. You define the importance of your goals, but it may help to categorize them into short-term, mid-term, and long-term goals. For example, it’s relatively quicker to save for a television compared to a down payment on a house.
• Set your priorities. Prioritize goals that relate to your basic financial security first, like building an emergency fund or paying off high-interest debt.
• Get S.M.A.R.T. Once you have your goals listed and prioritized, it’s time to get ultra-specific about reaching them. The more specific you are about why and how you’ll accomplish your goal, the easier it will be to achieve them. Use the S.M.A.R.T.  acronym to help guide you through defining your goals:

• Specific goals are clear and well-defined. What is your goal and why?
• Measurable goals allow you to track your progress. What is your financial goal? How much and how often will you need to save to reach your goal?
• Achievable goals are realistic within your financial capabilities. Can you realistically meet your goal? If not, try giving yourself more time to save or find a way to reduce the amount needed.
• Relevant goals align with your priorities. Why is it important to you?
• Time-bound goals have a clear deadline. When do you want or need to accomplish your goal?

The Best Way To Use Technology To Help You Budget

Thanks to tools like online banking and budgeting apps, you can easily dissect or track your spending habits day-to-day.

For instance, your financial institution may have an app that lets you see snapshots of your account balances. This takes the guesswork out of your finances whenever using your debit or credit card.

There are also apps with budgeting tools that allow you to categorize your spending. Budgeting apps are a great way to visualize your spending habits, allowing you to pinpoint places in your spending that need adjustment.

Finally, give automation a try. If your workplace offers direct deposit, request that a portion of your paycheck goes to a separate savings account. You can also arrange automatic transfers with your financial institution. For example, set up a recurring transfer from your checking account to your savings account every pay day.

The key to managing your finances easily is to keep it simple. Remember, saving money is a life skill that you can improve over time. If you need help getting started, consider visiting your financial institution’s local branch. You may be able to find resources and guidance on how to strengthen your savings strategies.