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Saving money doesn’t need to feel overwhelming when you have the right tools and strategies to get started. Using these practical tips and VRS resources, you can build a habit of saving and make progress toward your short- and long-term goals.

• Gamify your savings goals. Turning saving into a game can make it more enjoyable and motivating. Set achievable goals and challenge yourself to do better each month. Start by saving an extra $25 this month, $50 next month and maybe $100 the month after. As you make progress, celebrate with small rewards — like a coffee from your favorite shop or a movie night at home.
• Save automatically. Pay yourself first by setting automatic transfers to personal savings and retirement savings accounts, like the Commonwealth of Virginia 457 Deferred Compensation Plan. This way, you can save money without needing a reminder. Take advantage of compounding interest, where you earn interest not just on the money you put in, but also on the interest that builds up over time. It’s like a snowball effect, where your savings grow progressively larger. Saving small, consistent amounts now can lead to bigger gains later.
• Get the match. Don’t miss out on free money. If you’re in the Hybrid Retirement Plan and contribute 4% of your salary to the plan’s defined contribution component, your employer will match this with 2.5%. State employees who contribute $40 per pay period to the Commonwealth of Virginia 457 Plan receive a $20 per pay period employer match (hybrid plan members must first max out their voluntary contributions to be eligible for the match). Increase contributions in your DCP Account, if applicable, and consider using SmartStep to automatically ramp up savings on a schedule you choose.

• Try the 50-30-20 rule. Some industry experts recommend this method, which can be adjusted to your needs and may help you manage your funds more easily.

  Save a recurring portion of your paycheck, such as 20%, as soon as you get it. Start with a comfortable percentage and investigate ways to let your money grow over time, such as the Commonwealth of Virginia 457 Plan, another plan offered by your employer or a high-yield savings account. Designate 30% for spending on your “wants” — think online shopping, a night out with friends and your favorite monthly streaming subscription. Reserve the remaining 50% for necessities.

• Budget. Look at your discretionary expenses for opportunities to trim. For example, keep only one streaming service at a time or wait for a show to finish airing before subscribing. Consider making a weekly meal plan with ingredients you need to avoid impulse buying at the grocery store. These ideas can help you save a significant amount each month.

There’s plenty you can accomplish today to set yourself up for a more comfortable tomorrow. For more tips on budgeting and gamifying your finances, visit Saving For Goals in myVRS Financial Wellness.