How to Consistently Save Money for the Long Term

Having enough cash to cover your expenses today is one thing, but building up a true savings cushion to support you in the long term is another. If you’ve wanted to start your nest egg but find it difficult or maybe even daunting to think about putting away money today to use down the road, there are some easy-to-digest strategies that can help get you in the right frame of mind. With a well-laid plan, saving money for the long term could be easier to accomplish than you think. 

Open a Retirement Account and Put 10% of Your Income In 

Once you've got an emergency fund set aside, it's time to start thinking as long-term as possible. While retirement may seem a long way away, the truth is that starting to save now can mean being able to retire comfortably versus having to work longer than you had wanted due to budgetary constraints. Your best bet is to open up a retirement account and consistently put 10% to 15% of your gross income in. Some popular account options are: 

• Registered Retirement Savings, which allow you to make tax-free contributions

• Tax-Free Savings Account 

Take Calculated Investment Risks Responsibly 

While it’s never a good idea to invest without doing your research ahead of time, taking some calculated investment risks could have big payoffs. If you invest a little too conservatively, you risk missing out on potentially higher rates of return. You can work with financial professionals to identify good investments for you, or research options yourself. Keep in mind that better rates of return can yield significantly more money over time due to compounding. 

Set Up Dedicated Accounts and Consider Automating Deposits 

If you want to hone in on specific goals that you're saving for, it may be a good idea to open dedicated savings account for each one. For instance, you can have a retirement account separate from a college savings account and separate from a dream vacation account. It's also helpful to automate monthly deposits where you can, so you don't risk forgetting to put money aside. 

By taking action today and actively setting money goals for the future, you can help put yourself in a good financial position down the road. The earlier you get started, the more the magic of compound interest can work in your favor. Consistently saving what you can today, set’s you up with a solid nest egg for the future.