Financial planner Darcy Bergen recently discussed six easy ways to start saving money.
Saving money isn’t something that comes naturally to everyone. It involves immense amounts of self-discipline and can feel nearly impossible when the bills never stop rolling in. Financial planner Darcy Bergen recently discussed his top six easy ways to start saving money.
“Saving money is a major challenge for many people,” Darcy Bergen said. “Arguably, the hardest part is just getting started. From there, saving requires discipline at a bit of work to get your finances organized and keep them there.”
Darcy Bergen explained that recording your expenses is the first step to saving. This is so you know how much you spend each day, week, and month. Recording your expenses includes spending as small as a cup of coffee or a tip.
Bergen’s next tip is the next step in the saving process. He suggested creating a firm budget. This needs a budget to which you can adhere month after month. Understanding your spending and your budget will help you understand where you need to cut spending.
“My third tip, and probably the one nobody wants to hear, is that it’s time to cut spending,” Darcy Bergen said. “You now understand where you’re spending and where your budget needs to be. Now, it’s time to cut out the areas of spending that are unnecessary. For many, this includes online subscriptions, entertainment, and non-essential purchases.”
Another essential tip in the money-saving process is to set clear savings goals. These may be long-term goals, like a down payment for a house or a child’s education. They may also be short-term goals, like saving for a new vehicle or simply building up your savings account. It’s important to set goals, no matter how large or small they may be.
Darcy Bergen suggested creating an automatic saving system. This leaves you less room for error. He recommended automatically sending a portion of your paycheck into a savings account. This helps reduce the temptation you may have to spend a portion of your paycheck on something frivolous.
“Setting up automatic transfers between bank accounts is easy with most banks,” Darcy Bergen explained. “However, a financial planner can also help with these details if you’re struggling.”
Bergen explained that his sixth and arguably most important tip is to work with a qualified financial planner. A financial planner works with you to create a budget that is possible to maintain while helping you build your savings account. Many times, a financial planner will help you discover areas for possible savings you wouldn’t have noticed yourself.
“The goal of a financial planner is to help you save as much as possible,” Darcy Bergen stated. “For many individuals, the financial planner can even help you build on your savings through investment opportunities. However, it doesn’t matter if you have zero savings at all or would like to build on the savings you already have — a financial planner can guide you in the right direction.”
Darcy Bergen currently runs Bergen Financial. He is an expert in helping individuals create savings, and specializes in planning for retirement. He highly suggests contacting a certified financial planner to help you turn your paychecks into savings.
Investment advisory and financial planning services offered through Simplicity Wealth, LLC, a Registered Investment Advisor. Sub-advisory services are provided by Advisory Alpha, LLC, a Registered Investment Advisor. Insurance, Consulting and Education services offered through Bergen Financial Group. Bergen Financial Group is a separate and unaffiliated entity from Simplicity Wealth and Advisory Alpha.