Ways to Save

How do I save?

Saving is somewhat counter-intuitive and goes counter to my desire for instant gratification, but I've just learned to trick myself into saving for the long term. To make it as painless as possible, I've done or taken advantage of the following:

• 401(k)
• Automatic withdrawals from my checking account or deducted from my paycheck before it is deposited into my checking account
• ESPP

I think it's really easy to just spend whatever comes in, and for a while I was living paycheck to paycheck. The idea of saving appealed to me, but there wasn't any money left over at the end of the month, so how could I save? I think that the most important thing that I learned as that I should pay myself first, and do the following: (1) treat saving as any other bill and/or (2) take it out before I even see it so that I will learn to adjust my spending accordingly. It worked.

I think that there are several goals for savings - long term goals such as retirement, short term goals for things you generally need to save for (such as for a down payment) and a cushion in the event of an emergency.