If you're like most people, you probably have a hard time balancing your income in order to put money aside in savings. Lack of savings could have drastic results if you are faced with an emergency. By taking measures to boost savings now, you can develop a nice cushion for the future. Here are a few ideas to help you get started.
Before you can boost your savings, you need to assess where your money is going. This can be done by examining your spending habits. Some spending is necessary for survival, i.e. rent/mortgage, food, clothing, utilities, insurance, car payment, etc. You also have an obligation to pay your debts.
Some spending, however, is frivolous and this is where you can cut back. By making a monthly budget, you can keep better track of your spending and get it under control. You can take advantage of online banking and mobile apps to monitor your finances regularly so you're fully aware of where your funds are going.
Once you've developed a budget, look for ways to reduce expenses in order to save more. If your goal is to save money, you either have to cut back on expenses or increase your income. Most people will find the former much easier to do than the latter.
Even small steps to reduce expenses can make a big difference over time. If you're used to eating lunch out daily, cut back to twice a week and pack a lunch from home for the remaining days of work. Look for special deals for your cable or phone to trim down costs. Use cash rather than a credit card so you're more conscious about what you spend. Reducing expenses will give you extra income to put into your savings account.
Setting goals for saving will give you greater motivation to save. You can start with small goals, like putting $5.00-$10.00 into your savings account monthly, and then increase this amount over time. Set realistic goals to make them easier to reach. You can also program your account so the money goes into your savings automatically upon depositing your paycheck.
Automating your savings ensures your account will grow. Rather than spending tax refunds and year-end bonuses, add them to your account to get it rolling. Boosting your savings takes discipline and self-control, but you will be happy with the results.
Monitor your savings account regularly to see how you're progressing. This makes you accountable to move forward. If you're unaccustomed to living on a budget, it's only natural that you overspend from time to time. Don't be alarmed and don't give up. Try to make up for your loss the next month so as not to lose your momentum and impede your progress.
By making an effort to boost savings, you'll have extra funds for a rainy day and build good financial habits that will benefit your future. At Flynn Financial Group, we can provide valuable insight into managing your finances to make savings a priority. Call us today for all your financial management needs.
Flynn Financial Group Inc