How to Save Money for Your Future

Everyone has personal goals they want (or need) to finance. But not everyone plans for them. Maybe you want to take your family on a big vacation. Or maybe you have family in another country you hope to visit at some point. Whatever the goal, it’s a good idea to make a savings plan. Here are three tips to get you going.

AARP Membership— $12 for your first year when you sign up for Automatic Renewal

Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine.

Join Now

Calculate your needs

Whether you are planning a family trip, saving for your children’s college fund or planning to buy a home, you must research how much money you need to meet that goal.  Planning a trip: Go online, visit a travel agent or hit your local library to research how much your trips will cost. Consider air travel, car rentals, hotels, food and entertainment.  The same goes with any goal – figure out how much it’ll cost so you know how much you’ll need.

Find savings opportunities in your budget

The key here is to create a budget to save your required amount of money.  Put aside additional money after paying your bills each month. For help check out AARP’s budget and savings calculator to discover how much your savings can add up when you reduce your spending and find ways to lower your expenses.

Here are some ways to increase your savings:

• Do you use a grocery savings card every time you shop? Look at your receipt and see how much you saved. Put that amount aside for your goal.
• Can’t get enough of that Caffé Americano you buy every morning? Make a strong cup of coffee at home and save the three bucks or so (that’s around $15 a week right there).
• Take lunch to work instead of buying it.
• Review your cable, phone and Internet service to see if there are ways to cut costs. Comparison-shop if that’s an option.

If you’re honest with yourself about “needs” versus “wants,” there are lots of other ways to cut everyday spending. Check out AARP’s tip sheet on cost cutting.