• Home
• Personal Finance
• Simplify Your Savings with Seven Steps

Simplify Your Savings with Seven Steps

Saving money does not have to be the most difficult thing in the world. As long as you’re relying on some accurate and helpful information to assist you, you should have no trouble at all with building a sound budget and ultimately sticking to it.

Having two accounts is a good thing for a couple of reasons. First up, let’s say that you happen to bounce a check. If you only have one account, you’ll be penalized. But if you have two accounts at the same bank, the bank will make an effort to take the money from your other account so that your mistake isn’t a costly one. Also, having a second account is a great way to keep your savings and your spending in order. One account for bills, one account for savings.

If you buy a box fan at the store, put a dollar back as savings. If you buy a sofa at the furniture store, put a dollar back. See where this is going? When you make a purchase, put a dollar back to save it! But not so fast. We’re not just talking about larger purchases. If you buy a candy bar at the store or a cup of coffee, put a dollar back as savings! This is how you start to really save money.

You may never fully understand the need for budgeting until you’re struggling one month and end up completely miscalculating expenses. What do you sacrifice? Your child’s medicine? Your rent or insurance? Your groceries for the next two weeks? This is a very real scenario that no one wants to face. Take the time necessary to budget out your money properly before you end up suffering for your lack of attention.

Some types of bank accounts are most certainly better than others. If you actually want your saved money to work for you, then it’s in your best interest to get involved with a bank account that accrues interest. These types of accounts are great for general savings, like college and retirement, because they will gain interest over a period of time.

When it comes to staying financially secure, it never hurts to have some help out there. Now, you don’t need to entrust in a friend simply to have someone from whom you can borrow money when things get rough. But you should be looking for someone to participate in the savings and budget experience with you. Someone who knows you well and who is going through the same situation is a great shoulder to lean on if you’re ever having any serious issues.

There are two reasons that you should avoid shopping online. The first reason: You don’t want to get trapped with recurring charges. Most online services will have some type of hidden fee, like extra shipping costs or recurring charges. The second reason: It’s just too easy to blow your money when you’re sitting on your butt shopping with your eyes.

It’s not realistic that you’re going to save 80% of what you’re spending now. But it is a realistic goal to save 20%. And that’s definitely a step in the right direction. Keeping your goals realistic ensures that you will meet them.

After reading the article above, you now know of a few different methods you can implement in order to save money over the long term. Some of these tips will work better than others. The most important thing is that you try them all when you want to save.

Related Posts to Simplify Your Savings with Seven Steps