Most of us know the importance of saving money, but truly 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 chunks of money at a time - every amount, no matter how small, counts.
There is more to saving than spending less money, even though that can be the most challenging aspect. Ask yourselves these questions when trying to save:
How much money should I save?
Where should I put my money and for how long?
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 pay yourself first before paying any other bills. For example, if you earn $1,000 per month, be sure to pay yourself at least $100 each month. In many instances, individuals will have this money automatically debited from their paycheck so they never see or “touch” the money before it is deposited into their checking and/or savings account. Furthermore, the temptation to put in less money is taken 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 term or long term savings, understanding your options is important. If you want to buy a car, that may be a short-term goal that requires a short-term savings option, such as a money market account. For retirement, you may need to look into IRAs or other types of investment vehicles for assistance. Check out this Savings calculator from BancorpSouth to see how long it will take to save towards your goal.
Saving money is not as difficult as you may think. By setting your savings goal and establishing a reasonable budget you are off to a great start. Be sure to keep track of your monthly goal achievement. 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.
Harland Clarke Digital® provides managed email services for several BancorpSouth marketing programs. This content is shared with permission. Any views expressed reflect the opinion of the original author(s).