7 simple tricks that always work that almost nobody uses
Teamwork makes the dreamwork, and great teammates have strong relationships.
One study examining the effect of spousal contributions on goal pursuit in older couples showed that when someone has higher relationship satisfaction, support, and less conflict, they make more progress on their goals.
In other words, it’s much easier to reach your goals together if you enjoy your time together. Your relationship will strengthen when you set and achieve savings goals together.
Saving for big-ticket items like a downpayment on a home or a new vehicle can feel overwhelming, especially for dual-career couples juggling work and home responsibilities. That’s why I am sharing these seven simple savings tricks that always work that almost nobody uses.
I’m going to save the most important tip for last.
1. Set S.M.A.R.T. Savings Goals with Your Spouse
The goal-setting process begins with dreaming about what you want to save for before sharing it with your partner. Then, when you have some savings goals in mind, you come together with your spouse.
Your savings goals should prioritize your financial health first. Have 3-6 months of expenses saved for emergencies. After eclipsing what you need, you and your spouse can, in turn, discuss any additional savings goals with one another and prioritize the goal that will make you both the happiest.
The structure of the savings goal matters. I recommend using S.M.A.R.T. goal-setting criteria.
For example, instead of saying, "We want to save for a house," try something like, "We want to save $20,000 for a down payment on a home within the next two years.
2. Set Identity Based Goals
While S.M.A.R.T. goals are great for defining what you want to achieve, identity-based goals focus on who you want to become. For instance, instead of saying, "We want to save money," say, "We are a couple who prioritizes financial stability." This shift in mindset can make saving money feel more like a part of your identity and less like a chore.
When you identify as savers, you're more likely to make choices that align with that identity. This can include cutting back on unnecessary expenses, seeking out deals, or finding creative ways to save. It’s a subtle but powerful way to keep your goals front and center in your daily life.
Remember, I’m going to save the most important tip for last.
3. Make it Automatic
One of the easiest ways to save is to automate the process. This way, you don’t have to think about it, and you’re less tempted to spend the money elsewhere. Save first, spend second.
Automatic savings can be a game-changer because it removes the effort and discipline required to save manually. Ultimately, automating savings can significantly increase the amount people save because it reduces the reliance on self-control.
4. Out of Sight Out of Mind
Split deposits into a different bank or credit union
Sometimes, out of sight really is out of mind. By splitting your deposits and sending a portion of your paycheck directly into a separate savings account at a different bank or credit union, you can make it harder to access that money for everyday spending. This strategy can be especially effective if you tend to dip into your savings for non-emergencies.
Collect the paperwork needed from your employer to split your deposits into separate accounts. An example of the paperwork and an outline of the steps are listed below.
Having your savings in a separate institution means you’re less likely to see and be tempted by that money. It creates a psychological barrier that can help you stick to your savings plan. This approach leverages the concept of "mental accounting," where people categorize and treat money differently depending on its source or intended use.
5. Find a High Yield Savings Account
When it comes to saving, every little bit helps. Look for a high-yield savings account to earn more interest on your money. Platforms like Raisin can help you find the best rates available, allowing your savings to grow faster without any extra effort on your part.
High-yield savings accounts typically offer better interest rates than standard savings accounts, which means your money works harder for you. Over time, the additional interest can make a significant difference, especially when saving for long-term goals.
6. Celebrate Reaching Your Savings Goals
Saving money is hard work, so it’s important to celebrate your achievements along the way. When you reach a milestone, whether it's saving your first $1,000 or hitting the halfway mark to your goal, take the time to acknowledge your progress and reward yourselves.
Celebrating your successes can keep you motivated and reinforce the positive behavior of saving. It doesn’t have to be an extravagant celebration; even a small treat or a special date night can remind you of why you’re saving and how far you’ve come.
7. Start the Process on a Money Date
As I said to kick off this post, I'm going to save the most important tip for last.
The best way to kick off your savings journey with your spouse is on a Money Date.
Dr. Megan McCoy, CFP®, LMFT, CFT-I™, AFC® is an Assistant Professor at Kansas State University's Department of Personal Financial Planning. She is a licensed Marriage and Family Therapist, an Accredited Financial Counselor®, and a Certified Financial Therapist-I™.
Dr. Megan McCoy, CFP®, LMFT, CFT-I™, AFC® explains in our Marriage Toolkit how couples should structure their Money Dates.
Click here for the free preview of our Marriage Toolkit, which includes her contribution to our Marriage Toolkit Topic: Money Dates, explaining how couples should structure their Money Dates.