If one of your goals is to start saving money, then you can easily succeed. Most experts suggest that you have between three and six months of money to cover your basic needs put aside. Creating a plan and following it is the first step to being successful. While saving money can be difficult, you have conquered many difficult jobs in the past. Therefore, you can save money.
Know What Money is Coming In
The first step to saving is understanding where money is coming into your life. That is a job for most people. For others, it may be a government benefit, insurance payment or some other type of money that comes in regularly. Others may have money that enters their life quarterly, semi-annually or annually like bonuses at work. Make a list of all the money coming into your life.
Open an Account
The next step is to open an account to put the money in regularly. Do some shopping so that you can find the financial institution paying the highest interest rate. Your savings should be kept in a safe place where there is little risk. One of the most popular choices is a savings account at a local financial institution. You may also want to consider high-yield accounts. When you get enough money set aside, then you may want to consider a certificate of deposit, treasury notes or money-market funds.
Pay Yourself First
Anytime that money comes in, then pay yourself first. While the amount that you pay yourself depends on your circumstances, many people find that putting 10 percent of the money coming into their lives is comfortable for them. Pay this like it was a bill before you pay anything else, and it will become a habit. While you may miss the money in the beginning, you will soon discover that you do not even think about it.
Start Paying Your Bills
Now that you have started paying yourself first, make a list of all the bills that you have. List them from smallest to biggest. Start working hard at paying them off as quickly as possible. Consider picking up short-term jobs or selling stuff that you do not use to create additional income to pay off your bills faster. After you have all your bills paid off, then start saving even more money. Be careful, however, to not sabotage your system by charging new things to credit cards while you are paying off your debt.
You can be successful at saving money. Then, you will always have extra in case of an emergency. Do not touch your savings, but you should continue to let it grow.
|About The Author
Gerald Woods is Director of Operation at Solace Connect, LLC based in San Antonio, TX. He has written many articles on various topics dealing with online streaming, fashion, fitness, and a host of other topics. He graduated from Prairie View A&M University with a B.B.A . in Finance. Follow his team and him at Facebook or by subscribing to our News Letter at the bottom of this webpage.