Budgeting a Savings Plan

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Family of three - Budgeting a Savings Plan

Saving money is not as difficult as you might think. You can save, at least a little, even if you feel that you have few dollars to spare.

Your Budget

Your first step is to draft a budget. This allows you to understand how much money you have coming in and how much is going out each month. BancorpSouth has several budgeting tool, including BudgetWi$e to help get your finances on track.

At the beginning of every month, estimate the amount of money coming into your household. Then, subtract your monthly expenses from this figure. Remember to budget enough for groceries and entertainment.

Once you know the difference between your income and your expenses, you'll know how much money is available for saving.

Challenge Yourself to Save

Don't be discouraged if the results of your budget show a small amount of money left over once you calculate your expenses. What's important is that you start saving. Try making regular deposits in your savings account, even if these deposits are small ones.

Your Savings Account

Everyone has different savings goals, so it is important to select the right savings option that aligns with your savings goal. You may have a short term goal that requires a short term savings option, such as a money market account. Or you maybe interested in a longer term savings plan similar to an IRA or other type of investment option. BancorpSouth has several savings options to choose from. Talk with your financial advisor or visit us to find out what options you have and what savings option best fits your needs.

Direct Deposit

If your employer offers direct deposit, ask to have some of your money from your paycheck automatically deposited not only in your checking account, but also in your savings account. This way, your savings account will grow without the extra effort of making a separate deposit. Just make sure that the amount you are automatically depositing is in line with your monthly budget and is not more than you intended.

By following these tips, you are on your way to establishing a budget that can fit several savings options. Remember: saving money is intended for the long haul and should grow steadily over time. Talk with your financial advisor or visit us to discuss your savings options.