7 Tips to Make Saving Money a Habit

Every penny counts when we’re on a budget. With prices going up, it’s more important than ever to save money where we can.

Luckily, committing to a new routine, like improving your spending and savings habits, is achievable. The key is to start small, be consistent, and make manageable changes.

AARP Foundation has been helping people find affordable ways to secure the essentials for more than 60 years. To help you make saving a regular habit, we’ve gathered these expert tips.

Start with a Specific Savings Goal

Financial experts agree that an emergency fund is critical for managing those unexpected expenses. Setting a goal to build an emergency fund can motivate you to stick to new behaviors, like buying only what’s on your list while you’re shopping. After a while, those new behaviors turn into a habit you no longer have to think about.

Group Your Errands

This clever tip not only saves money, it saves time. Preplanning your errands in one weekly or biweekly trip saves you money on gas and unnecessary wear and tear on your vehicle — or on cab fare or bus tickets.

Make Your Savings Visible

Whether it’s seeing your change add up in an envelope, tracking your savings in an app or checking your savings account each month, there is nothing like concrete progress to keep you on the path to forming a new habit. Think of it as positive feedback to keep you moving towards your goal.

Focus on One Thing to Change

Just like crash diets never change our eating habits for good, neither does stopping all unnecessary spending at once. You may save some money, but chances are, you’ll feel so deprived you’ll blow all your cash on something you don’t need. Instead, cut out spending on something small like drinks or or snacks from the convenience store, and bank the savings, like this expert saver:

I started with making one change each week until it became a habit for me. I very rarely eat out now. I don’t stop at convenience stores anymore. I make sure that I bring bottled water from home with me whenever I leave home.

Set Up Auto Savings

Paying yourself first is one of the most frequently shared tips from financial experts for a reason. Setting up an auto-transfer to your savings not only keeps you from spending money from your checking account, it automates earning interest on your savings. In addition, consider depositing any unexpected money from a gift or refund straight into your savings.

Plan Your Purchases

Instead of making a quick trip to the store or filling your online shopping basket on a whim, write down exactly what you want to buy and how much it will cost. Not only does the list help you avoid impulse buys, it makes it clear if you are spending on wants instead of needs, a habit experts recommend to reign in unnecessary spending.

Adopt the 24-Hour Rule

Now that you’re on the list-making bandwagon, wait at least 24 hours before buying any non-essential item. This self-imposed rule is a habit that pays off in many ways. Not only does it give you time to evaluate your purchases, it makes being thoughtful about spending money an automatic habit.