Tips for Saving Money

Average: 3.6 (11 votes)

Most of us know the importance of saving money but feel we can do better at it. Many of us don’t save at all, even though we know we should. You don't have to save a large amount of money at a time - every amount, no matter how small, counts.

Even though spending less money can be the most challenging aspect of saving, there’s more to it than that. Ask yourself these questions when trying to save:

How Much Money Should I Save?

Many financial experts suggest you should save 10 percent of your gross income each month. The best way to do this is to set 10 percent aside for savings before paying any other bills - for example, if you earn $1,000 per month, be sure to set aside at least $100 each month. In some instances, individuals will have this money automatically debited from their paycheck, so they never have the money before it is deposited into their savings account. Furthermore, you’re less tempted to decrease the amount you put away when you don’t see it to begin with.

Where Should I Put My Money And For How long?

Set savings goals. Whether for short- or long-term savings, understanding your options is important. Buying a car may be a short-term goal that requires a short-term savings option, such as a money market account. If saving for retirement, you may need to look into IRAs or other types of investment vehicles for assistance. Try out this savings calculator from BancorpSouth to see how long it could take to save toward your goal.

Saving money is not as difficult as you may think. Setting your savings goal and establishing a reasonable budget is a great start. Be sure to keep track monthly of how much you actually save. You may find that one month you were able to save more than another, so review your expenses and see what worked best for you. Remember that a good savings plan does not happen overnight; it takes time, and every little bit counts.