Who hasn’t had more month left at the end of the money? It’s no wonder really: groceries on Monday, bills on Tuesday, gas for the cars on Wednesday and by the end of the week your paycheck is gone. However, if you establish a savings plan, you’ll “find” money in places you’ve never thought to look!
If you’re like most American families, you wait for “extra” cash to save. As crazy as it seems – this is a backward way of thinking. Financial experts will tell you – always pay yourself first! That means making sure you are contributing to a savings plan first – whether it’s your 401k Retirement account through your employment or your own personal savings account – make sure something is going in there.
Every little bit that you save is a step in the right direction, so starting a savings plan is definitely more about quality than quantity. In other words, getting into a regular routine of saving is more important than how much. It’s perfectly fine to start small and increase as you’re able.
Here are few other tips to help further avoid having too much month left at the end of the money:
- Know the difference between your wants and your needs: “Needs” are the items necessary for your existence: shelter, food, clothing, and transportation. Anything extra are considered “wants” and need to be eliminated or at the very list severely limited.
- Set realistic savings goals. Most experts suggest you place 10% of your income into savings. This is a good place to start, but if even 10% is too much, start smaller. It’s perfectly ok to start small and build as you can.
- Set up Direct Deposit into a separate savings account: You know the saying “out of sight, out of mind.” By setting up a set amount to be directly deposited into a savings account, you are removing the temptation of saying “oh I’ll put some in next week.” The time to start saving is NOW.