As the days grow longer and the snow from another Michigan winter begins to melt, we can finally say that spring is on its way. With the newly green trees and restored wildlife, what better time than now to get out of that winter slump and rejuvenate your finances? Spring can be an exciting time to start fresh with many things — including your savings.
Here are a few tips when it comes to saving this spring.
Save money each paycheck
Spring break and summer vacation will be here before you know it. Start saving for projects and vacations now to prevent overspending in the future. You can accomplish this by setting savings goals each week, and being sure to stick to them each time you receive a paycheck.
To reduce your chances of spending money that you’d rather save, set up automatic transfers from your paycheck to your savings or sub-savings account. That way, the money is put away before you can think about how you could spend it. You can transfer as much or as little as you please by choosing a percentage of, or a specific amount from, your paycheck each pay period. Your savings will grow significantly throughout the year, and
you’ll even earn dividends on the money you put in a savings account.
Open a high-yield savings account or fund an IRA
Haven’t decided what to do with your tax refund yet? One option is to put the money directly into a savings account. To make the most of your savings, consider opening an insured money management account (IMMA) or a certificate. Both enable you to earn higher dividends on the money you save.
You may also want to consider putting your tax refund toward an individual retirement account (IRA). It’s never too early to save for retirement,
and you may qualify for a deduction on next year’s taxes. For more information about IRAs and to find out how you can qualify for a deduction, you may visit irs.gov.
Save through spring cleaning
Another way to save can be as easy as doing some spring cleaning. Going through your closet or garage will not only help you save space in your home, but it can also help you earn money. Taking your unwanted or unneeded clothing and household items to a consignment store could help you earn extra spending money or cash to put toward your savings goals. You can also try selling items online or in a yard sale to generate more profits. Anything that goes unsold can be donated to local charities or nonprofit organizations, thus helping them save money on expenses.
Seasonal change brings seasonal products and services. You’re bound to find a plethora of deals on items, but your best bet is to look for significant price reductions on last season’s goods. Didn’t get that winter coat or snow blower that you wanted at the beginning of the season because it was too expensive? Look around online or in stores now to see if you can find a bargain. Even if you don’t use the item right away, you’ll be glad you have it for next year.
Starting fresh with your savings can be the perfect way to kick off the spring, so take advantage of the resources out there to help accomplish your financial goals. Whether you choose to use financial resources or online calculators, talk with a representative from your financial institution or meet with a financial advisor. You can head into spring by getting ahead with your finances.