I bet you forgot it, huh? No, not your brother's birthday... I Forgot Day! I Forgot Day fell on July 2 this year, and it's a day celebrated by apologizing to people whose important days (birthdays, anniversaries, etc.) you forgot over the year. Don't worry! While the day itself may have passed, we can celebrate I Forgot Day year 'round when it comes to not forgetting about saving.
We all like the idea of saving, but how many of us consistently forget to save regularly? Here are 5 tips to make sure you don't forget to save this year:
Make Automatic Deductions for Retirement
You can't forget it once you set it! Make saving automatic by setting up a direct deposit straight into your retirement account. How much you choose to save is up to you and your budget, but most financial planners recommend setting aside 10% per paycheck for retirement.
The best part about putting part of your paycheck into a retirement account, such as a 401(k) or Traditional IRA, is your tax status. If you set up an automatic deduction from your paycheck through work into a retirement account, this reduces your taxable income. Automatic retirement savings and less in taxes? Win-win!
[Tweet "You'll never forget about retirement if you automate the savings process!"]
Pay Yourself First
Beyond saving for retirement, remember to pay yourself first. Come up with a system where you pay yourself first. After all, if you're not cared for, you can't care for anyone else. This is especially important if you're a parent or a business owner. Don't forget about yourself.
You can get a jump on next year's I Forgot Day by setting up automatic deductions from your paycheck into your savings account. Again, how much you save is up to you and your savings goals, but 10% of your monthly paycheck is a good rule for your savings account. You probably won't even miss 10%.
Make it Fun
You'll never forget your savings goals if you give your account(s) fun names like 'Travel to Hawaii to see the Dolphins' or 'My Awesome Mansion Fund'. If your bank offers you the option of naming your own savings accounts, go ahead and give them big, audacious names. Or stick with practical names, like 'My Just in Case Fund' or 'Chill Wedding Fund.' Do what makes you happy.
Whatever your goal, own it by naming it. Check on the account regularly. It's harder to forget adding to your savings account when it bears a memorable name. Plus, we name everything else we care about - our car, our dog, our children... why shouldn't we also name our bank accounts?
Save Your Change with a Goal Jar
Save that spare change in your pockets by setting up a goal jar. While a goal jar full of change won't accumulate as quickly as your retirement or savings accounts, you'll be surprised by how much money you'll add to the jar.
You won't forget I Forgot Day if you keep your goal jar in plain sight. Consider placing it atop a table which can be seen right when you walk in the front door. This will keep the goal jar fresh in your mind and remind you to go through your pockets or wallet for change every day. Physical reminders are powerful.
Make it a Habit
Setting up automatic withdrawals, giving your accounts fun names, and keeping your goal jar will go a long way to making saving money a habit. Beat I Forgot Day forever by making saving money a daily habit. Set a time, weekly or monthly, to check on your savings accounts and savings habits. After a few months of regularly saving habits, you'll realize saving money can be second nature.
By making saving a habit, you'll never need I Forgot Day to remind you to save. In fact, you'll be so good at saving, you'll forget I Forgot Day! That is, unless you always forget your brother's birthday!