Sometimes the most difficult thing about saving money is getting started.
To help you start saving for your dreams we have prepared a step-by-step guide to money-saving habits.
1. Choose what you want to save for
Start by thinking of what you might want to safe for, anything from a down payment for a house, to a vacation, your child’s birthday party or communion. Think about how long it may take – are you saving for the short-term or long term?
Savings tip: Save for that rainy day! It is a good idea to have an emergency fund available that covers 3-9 months of living expenses, just in case.
2. Know your expensesIn order to save money you must know how much you spend and what you spend it on! Keep track of all your expenses from your mortgage or rent to every coffee, groceries or takeaway food you buy. Use your bank statements in Aruba Bank Online to help you with this.
Look at your monthly spending and see where you can make cuts – maybe fewer takeaway meals or treats? Remember every Florin counts.
Savings Tip: Don't impulse buy!Think carefully before making a purchase - especially if it’s expensive. At the very least sleep on it! It might seem less appealing in the morning.
3. Make a budgetOnce you have an idea of how much you spend each month, you can begin to organize your expenses into a workable budget. Your budget should outline how your expenses measure up to your income—so you can plan your spending and limit overspending. In addition to your monthly expenses, be sure to factor in expenses that occur regularly but not every month, such as car maintenance or school fees.
Need help with making a budget? Make an appointment with one of our customer service representatives and we will assist you making a budget and a savings plan.
4. Plan on saving money!Include savings in your monthly budget just as you would with any other expense. It is a good rule to put 10 percent of your income as savings, if you can. If your expenses are so high that you can’t save that much, it might be time to cut back. To do so, identify non-essentials that you can spend less on, such as entertainment and dining out. If you still can’t save 10% of your income but whatever percentage you can. By doing so you have taken the first important step of getting into the habit of saving and reaching your goal.
5. Choose the right savings accountIf you are saving for a short term goal consider savings accounts like Cuenta Sabi or Internet Savings. For long term savings goal we have options like Time Deposit account or Cuenta ABC when saving for your chidren’s future.
Learn more about Aruba Bank savings accounts
6. Get started!Start saving for your dreams. Check your progress every month as this may help you stick to your personal savings plan and may even inspire you to save more and hit your goals faster.
Saving for a down payment on a house, an emergency fund or a hard-earned vacation might seem an impossible hurdle. But remember that you can achieve your most ambitious savings goals if you work toward them gradually and in small increments.
Savings Tip: set up automated transfers!
This is a great way to save money since you don’t have to think about it and it generally reduces the temptation to spend the money instead.