One of the biggest reasons that people aren't able to save is because they don't take the time to plan. They assume that somehow savings will just occur based on the amount of income and a genuine desire to cut down on how much they spend.
In reality, savings and achieving financial goals all start with a plan. A written and comprehensive budget is always the best option, and your financial planner can help develop a plan that will work for you.
Be Realistic
It is nice to want to save 20 or 30 percent of your income, but this means you have to be able to also address all other current debt and pending debt and then also save the additional amount.
For many singles and families, a more realistic goal, particularly if you have student debt, car notes and mortgages, is to aim for a 10 percent saving per month. If you can save 10 percent and place it in a high-interest bearing investment, this can really add up over time.
Have a Saving and Investment Plan
Talking to a financial planner about a saving and investment plan is critical. In days gone by, a saving account in a bank or even the purchase of CDs may have been a viable option, but today, they don't produce the long-term investment potential most people are looking for.
Comparing different investment options, their risks, and their potential advantages is an important consideration. Having a professional you trust on your side can help in making the most informed decisions.
Address Emergencies
Most financial planners recommend having an initial emergency fund of at least $1000, and building up to a full three months of living expenses is a good goal. This emergency savings should be a priority to fund, and will limit the risks of trying to deal with unforeseen issues.
Through good financial planning, even those on limited budgets and income can develop a solid plan for their future. Professionals can help; all it takes is a call to get started.