Saving money has always and will always be a financial concern. Perhaps the recent economic instability has only shown us just how crucial saving money really is to our future and well-being.
Even if you have not suffered unemployment, you may know of someone who has. The financial struggle is straining on one’s physical and emotional health.
Having money saved during these difficult life experiences can offer piece of mind, a little cushion to fall back on, and a feeling of security. Now, begs the issue, where do we start.
Saving Money is No Easy Feat
The first savings goal is to accumulate three to six months worth of living expenses.
This is an emergency fund that will help you during a job loss or while enduring a health issue. The living expenses should cover food, mortgage/rent, and utilities.
These are the bare-bones necessities that you require to live will be covered in these 6 months of savings. Some suggest 9 months and other still a year. I’ve aimed more toward the 1 year time-frame.
But Where Does the Saving Journey Start?
The questions circle our brain on where to start, what the most effective method of saving is, and how to save without depriving ourselves of living life to the fullest?
You work hard and deserve a well-rounded financial plan; a plan that will help you save money, enjoy life, and maintain your financial responsibilities.
Well, hopefully by the time you finish reading this you will feel comfortable on taking control of your finances and accumulating your savings.
Does it Take Money to Make Money?
An important, but often forgotten, tidbit of information to keep in mind is that it takes money to make money. The more money saved means the more money that will accumulate. Of course, you have to start by first saving some money, that is step one.
Saving money is not always as simple as we would like it to be, but there are ways to make it a little less complicated.
An easy way to start saving money as soon as tomorrow is to have a portion of your income go into a savings account.
Figure out how much you can comfortably save after all of your financial obligations are met and have it automatically designated to a separate account. This account is your savings account.
Try to maintain the thought that once the money is sent to this account, it cannot be used for spending. Of course, emergencies happen, and the money is yours but limit the withdrawals made on the account.
Make the Extras; Keep the Extras
Another easy and not-so-drastic way to save money is to send any raises, bonuses, or unexpected money to the savings account.
Think of it this way, you weren’t expecting to obtain this money so why not save it for the future. Once you see how quickly your savings can add up, you will be even more motivated to continue savings.
And Thus Came the Investment Ideas
Once you have substantial amount of money saved you, you can consider investing the money and sitting back while you watch it grow.
The more money you invest, the greater the return on the monies. There are many options for investing, and you should research each option to properly select the one that suits your needs and goals.
Keep Emergencies in Mind
Always remember, that an easy accessible emergency fund should be close at hand for those unexpected expenses.
You just never know when your car will need a sudden repair or when a visit to the doctor costs a little more than originally anticipated. Having the funds close at hand will help cover these costs and keep you financially stress-free.
Living in Your Limits = Plump Wallet
Saving money is a matter of learning how to live within your income. Although life is not always controllable, we can take steps to keep our finances secure.
Also, consider whether or not your personal strengths or weaknesses are getting in the way. This simple and practical resource is good for additional tips and suggestions on building your savings mindset and habits.
Saving can become a habit for you. It takes time, patience, and a little thought to formulate a savings plan that works for you. And it’s completely possible. Let’s get up on it already!