There are countless reasons to save money, but saving for a home, your child’s education, and retirement are usually the largest and most daunting savings goals. They are also among the most important goals to save for – making it imperative that you begin saving now if you’re not already!
1. Establish Goals
Before you arbitrarily choose an amount to save each month, figure out what your exact savings needs are. This will help you choose the correct amount to put away. Free online calculators are great tools to help you get started. For mortgage calculators, click here. For savings calculators, click here.
2. Small Steps
Saving for major goals can be very overwhelming. You may be more successful at saving if you begin small. For instance, if you’re only saving 5% of your take home pay, increase it to 7%, and then make a plan to continually increase the percentage each year.
3. Be Consistent
No matter what your savings goals are, it’s important to be consistent once you make the commitment to save. If it helps, set up monthly automatic deposits to your savings account. If your company offers a 401(k) plan, make sure you always receive the full match. You should also avoid withdrawing money from your savings at all costs.
Withdrawing money will set you back, and depending on the account you could incur penalties.
Saving money is a choice and a habit worth cultivating – especially when achieving your future goals depends on how you spend money today!
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Categories: Budgeting, Saving