8 simple ways to save money

Sometimes the hardest thing about saving money is just getting started. This step-by-step guide for how to save money can help you develop a simple and realistic strategy, so you can save for all your short and longterm savings goals.
One.Record your expenses
The first step to start saving money is to figure out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip.
Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you`re accurate—and dont forget any.
Tip: Look for a free spending tracker to help you get started. Choosing a digital program or app can help automate some of this work. Bank of America clients can use the Spending & Budgeting tool, which automatically categories your transactions for easier budgeting in the mobile app or online

Two.Budget for savings
Once you have an idea of what you spend in a month, you can begin to organize your recorded 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. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance.
Tip: Include a savings category—aim to save 10 to 15 percent of your

Three. Find ways you can cut your spending .
If your expenses are so high that you cant save as much as you would like, it might be time to cut back. Identify non essentials that you can spend less on, such as entertainment and dining out. Look for ways to save on fixed monthly costs, like TVs and mobile phones.
Here are some ideas for reducing your daily costs. Use resources such as the
Community Event List to find free or low-cost events and reduce your entertainment costs. Cancel subscriptions and memberships that you do not use. In particular, cancel if they are updated automatically. Promise to eat out only once a month and try out places that fall into the cheap food category. Set up a "cooling-off" period: If you are tempted by an unwanted purchase, wait a few days. Maybe you're glad you passed or you're ready to save for it.
Four.Set savings goals
One of the best ways to save money is to set goals. First, think about what you want to save for maybe get married, plan a vacation, or save for retirement. Then calculate how much you need and how long it may take to save it.
Here are some examples of short-term and long-term goals:
Short term (1 to 3 years)
Emergency fund (3-9 months)
Just in case of living expenses
holiday
Car down payment
Long term (4 years or more)
Home down payment or
Remodeling project
Education of your child
retirement
If you are saving for retirement or educating your child, consider putting that money into an investment account such as the IRA or 529 Plan. While investments come with risks and can lose money, they also create the opportunity for growth when the market grows, and could be appropriate if you plan for an event far in advance. See step No. 6 for more details.
Tip: Set a small, achievable short-term goal for something fun and big enough that you are not likely to have the cash on hand to pay for it, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the fun reward you have saved for—can give you a psychological boost that makes the payoff of saving more immediate and reinforces the habit.

Five. Decide on your priorities
After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. Be sure to remember longterm goals—its important that planning for retirement doesnt take a back seat to shorter term needs.
Tip: Learn how to priorities your savings goals so you have a clear idea of where to start saving. For example, if you know you are going to need to replace your car in the near future, you could start putting money away for one now.

Six.Pick the right tools
If you are saving for short-term goals, consider using these Fdi Insured deposit accounts:
Savings account
Certificate of deposit (CD), which locks in your money for a fixed period of time at a rate that is typically higher than savings accounts
For longterm goals consider:
FDI Insured individual retirement accounts (IRAs), which are tax savings accounts
Securities, such as stocks or mutual funds. These investment products are available through investment accounts with a broker dealer. Remember that securities are not insured by the FDIC, are not deposits or other obligations of a bank and are not guaranteed by a bank. They are subject to investment risks, including the possible loss of your principal. Tip: You don`t have to pick just one account. Look carefully at all of your options and consider things like balance minimums, fees and interest rates so you can choose the mix that will help you best save for your goals.

Seven.Make saving automatic
Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much, and where to send money. You can also split your direct deposit so that some of your salary goes directly to your savings account.
Tip: Splitting direct deposits and setting up automatic remittances is an easy way to save money because you don't have to think about it and usually reduces the temptation to spend money instead. Mobile & Online Banking makes it easy for Bank of America customers to set up automatic transfers between their accounts.

Eight.Watch your savings grow
Check your budget and progress every month. Not only does this help you stick to your personal savings plan, but it also helps you quickly identify and resolve problems. Understanding how to save money will help you find more ways to save and reach your goals fast.