by Emily Hechler 
Instant gratification from purchases creates an addicting thrill. However, lots of spending and a lack of saving don’t help you prepare for your financial future. Many people often neglect strategic saving, and don’t see much financial growth. These long-term saving strategies can be implemented into your everyday life. These low-risk options can yield great benefits later.
Follow a budget. When many think about following a budget, they imagine financial restriction. In reality, following a budget just helps you spend an appropriate amount of money on what matters the most. When you create a budget, you can slot in your Savings. This helps you ensure that you aren’t spending all the money you bring in each month. Instead, you have money set aside to cover large expenses later.
Reduce your debt. The more you pay in loan payments each month, the less you have to save. Some loans, like mortgages, are inevitable and require payments for decades. Other loans, like credit cards, auto loans, and personal loans, can be reduced faster if you create a plan to make it happen. Don’t feel like you need to pay off all your loans as quickly as possible. This can leave you struggling in an emergency situation. If you want to pay off your debt fast, compare the debt snowball and debt avalanche method to determine which option works best for your situation.
Invest your money. Plan ahead so you can retire without worrying about your finances. A great rule of thumb is to contribute 15% of your pre-tax income toward retirement savings. This can seem like a large amount. That’s because it is. If you aren’t able to save 15% right now, that’s okay. Open a retirement account and regularly contribute what you can. Many accounts allow you to automatically transfer money into your retirement account with your paycheck direct deposit. Some employers also match what you contribute to a certain amount too. You can also open an IRA with Alltru independent of your employer to supplement your retirement savings.
Open a CD. Certificates of Deposit range from 3 months to 5 years. When you open a CD, you lock in your interest rate. No matter the status of the economy, your account will continue to grow at the original rate. Once your CD reaches maturity, you can open another CD to keep saving more. CDs are low-risk ways to diversify your investments for a well-rounded portfolio.
Sign up for life insurance. Many life insurance plans only cost a few dollars a month but provide your loved ones with the funds they need to honor your life without financial strain. Alltru members can get accessible term and whole life insurance for a low cost with TruStage. While these funds aren’t fun to plan for, your beneficiaries can be relieved of a personal financial burden thanks to your plan.
These five strategies are effective on their own. When you combine a few, you’re helping your future self. The key to saving long-term is to make sure you regularly contribute to your plan. Sporadic or inconsistent saving habits make it more difficult to effectively prepare for your future. When you contribute regularly, you can more easily adapt to spending less money on other expenses too.
