Money Monday

Sometimes just getting started is the hardest thing to save money. This step-by-step guide on saving money can help you develop a simple, realistic saving plan for goals, big or small.

1 The first step to saving money is to figure out how much you're spending. Keep track of all your expenses—meaning all coffee, household items, and cash tips. Once you have your data, organize the numbers by categories, such as gas, grocery stores, and mortgage, and sum up each amount. Consider using your bank statements or credit card to help you with this. Bank of America customers can use the Spending & Budgeting tool, which categorizes your transactions automatically for easier budgeting in the online or mobile app.

2. Make a budget

You can start organizing your recorded expenses into a workable budget once you have an idea of what you spend in a month. Your budget should outline how your expenditure measures up to your income—so you can plan your expenditure and limit your over-expenditure. Be sure to factor in expenses that occur regularly but not every month as well as your monthly expenses, such as car maintenance. You can use the Better Money Habits Spending Analysis Tool to compare your budget to those of people like you.

3. Plan to save money

Now that you've made a budget, create a category of savings within it. Try saving 10-15% of your income. If your spending is so high that you can't save so much, it may be time to cut back. Identify non-essentials, such as entertainment and dining out, that you can spend less on, and find ways to save on your fixed monthly expenses. Tip: Consider the money you spend on regular savings to reinforce good savings habits., similar to grocery stores.

4. Setting a goal:

is one of the best ways to save money to choose something to save. Start by thinking about what you might want to save—maybe you're getting married, planning a holiday, or retirement savings. Then find out how much money you're going to need and how long it might take to save it. You can use the Picture My Goals tool to set up and track your progress towards your goals in the mobile app if you have a Bank of America account.

Here are some examples of short- and long-term goals: short-term (1–3 years) long-term (4+ years) — a down payment on a home or remodeling project — your child's education — retirement — emergency fund (3–9 months of living expenses, just in case) — vacation — down payment for a car If you're saving on retirement or your child's education, consider putting that money into an investment. While investments come with risks and may lose money, if you plan for an event far in advance, they also create the opportunity for compound returns. For more details, see step No. 6.

5. Decide on your priorities:

Your goals are likely to have the greatest impact on how you allocate your savings after your expenses and income. Be sure to remember long-term goals—it is important not to take a back seat to shorter-term needs when planning for retirement. Learn how to prioritize your savings targets in order to get a clear idea of where to start saving. For example, if you know that in the near future you will need to replace your car, you might start putting money away for one now.

6 Choose the right tools If you save for short-term purposes, consider using these FDIC-insured deposit accounts:

savings account

Certificate of Deposit (CD), which locks your money for a fixed period of time at a rate typically higher than savings accounts

For long-term purposes, consider: FDIC-insured individual retirement accounts (IRAs), which are tax-efficient savings accounts

Security accounts. These investment products are available with a broker-dealer through investment accounts. Remember that securities are not FDIC insured, are not a bank's deposits or other obligations, and are not a bank's guarantee. They are subject to investment risks, including your principal's possible loss.

Tip: You don't just need to pick one account. Look carefully at all your options and consider things like minimum balance, fees, and interest rates so you can choose the mix that will help you save your goals in the best possible way.

7 Automatic saving Almost all banks offer automatic transfers between checking accounts and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so that a portion of every paycheck goes into your savings account directly. Splitting your direct deposit and setting up automatic transfers are simple ways to save money, as you don't have to think about it, and they usually reduce the temptation to spend the money.

8 Watch your savings grow Review your budget and monitor your progress on a monthly basis. This will not only help you to adhere to your personal savings plan, but it will also help you quickly identify and fix issues. These simple ways of saving can even inspire you to save more money on a daily basis and reach your goals more quickly here are some examples of short- and long-term goals: short-term (1–3 years) long-term (4+ years) — down payment on a home or remodeling project — your child's education — retirement — emergency fund (3–9 months of living expenses, just in case) — vacation — down payment for a car If you're saving on retirement or your child's education, consider putting that money into an investment. While investments come with risks and may lose money, if you plan for an event far in advance, they also create the opportunity for compound returns. For more details, see step No.

6. Decide on your priorities

Your goals are likely to have the greatest impact on how you allocate your savings after your expenses and income. Be sure to remember long-term goals—it is important not to take a back seat to shorter-term needs when planning for retirement. Learn how to prioritize your savings targets in order to get a clear idea of where to start saving. For example, if you know that in the near future you will need to replace your car, you might start putting money away for one now. 6 Choose the right tools

If you save for short-term purposes, consider using these FDIC-insured deposit accounts: savings account Certificate of Deposit (CD), which locks your money for a fixed period of time at a rate typically higher than savings accounts For long-term purposes, consider FDIC-insured individual retirement accounts (IRAs), which are tax-efficient savings accounts Security accounts. These investment products are available with a broker-dealer through investment accounts. Remember that securities are not FDIC insured, are not a bank's deposits or other obligations, and are not a bank's guarantee. They are subject to investment risks, including your principal's possible loss. Tip: You don't just need to pick one account. Look carefully at all your options and consider things like minimum balance, fees, and interest rates so you can choose the mix that will help you save your goals in the best possible way

7 Automatic saving

Almost all banks offer automatic transfers between checking accounts and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so that a portion of every paycheck goes into your savings account directly. Splitting your direct deposit and setting up automatic transfers are simple ways to save money, as you don't have to think about it, and they usually reduce the temptation to spend the money.

8 Watch your savings grow

Review your budget and monitor your progress on a monthly basis. This will not only help you to adhere to your personal savings plan, but it will also help you quickly identify and fix issues. These simple ways of saving can even inspire you to save more money on a daily basis and reach your goals more quickly.