Do you have a savings goal you wanted to achieve this year? The year has just started. If you have a goal you want to reach, whether it is to save 10% of your check or $4,000 by the end of the year, it is important to have a game plan of how you will save the amount you want when the year 2015 closes. I want to help you feel proud when you log into your bank account and you see you have done it! You made the sacrifices and it all paid off.
As an entrepreneur of CayVisions, money management is the key to building a successful business. Through my years of experience, I have come to learn that having a financial cushion is crucial to have. This will take care of you if an emergency were to happen like a loss of a job, loved one, or miscellaneous expenses for your car or household. You can even save money for a certain trip you will want to take in the future or to make a down payment on a car or a house. The list of reasons of why you should have a decent savings account can go on and on! Just remember, it will protect you and keep you secure if a rainy day comes.
Today, I am going to give you a few simple tips and tricks to help you stay on track to build a strong savings account. This way you have peace of mind knowing you have been proactive to handle any unexpected events that may happen in the future.
Set An Attainable Goal
When it comes to setting a savings goal, make sure it is an attainable one. We suggest sitting down and analyzing how much money you make a year and the expenses you are paying for now. Once you have your net income available to you after expenses, then you can determine how much you can actually set aside.
Setting an unrealistic goal may discourage you and hinder you from sticking to the plan. So please make sure it’s a reasonable number.
Cut Miscellaneous Expenses
We are all guilty of this. Miscellaneous expenses is the cup of coffee you buy every morning, daily lunches and dinners you go to every day with your friends, paid subscriptions, luxury services like getting your nails done or massages, and other things you want, but do not necessarily need.
What I suggest for people to do is to sit down and examine their last month’s expenses. There are also online tools that certain banks have to show how much you are spending in each category, such as entertainment, food and dining, etc. Write it down and then total it. Examine where you can cut expenses to save money. If you like to get your nails done, then look into learning to do them at home. Try homemade coffee instead of going to Starbucks every day. Brown bag it, which means to bring food from home to work, to save money from having to go out. Cut the expenses. Trust me when I say, this is a sacrifice you will be thankful for when you see how much money you have saved at the end of the year!
Automatically Put Aside Money
Here is a trick, consider saving as an expense that you cannot miss a payment on. Set up automatic payments to have a portion of your check going straight to your savings account. A good rule of thumb is to save 10% of your income. If you are able to put in more at the end of the month, then feel free to. The quicker you put it aside and out your mind, the less likely you are to spend it.
Review Your Bills
See where you can cut back on monthly expenses. Again, write down all your bills that you must pay each month. Then, total it. Examine your car insurance; look at your cell phone bill, utility bill, and loan payments. Call the insurance company and cell phone carrier to see if there is a way to lower your bill. Many times there are discounts you are unaware of or you are paying for unnecessary coverage. If your utility bill is very high, see how you can lower it by making sure you turn off the lights or turn your thermostat down two degrees. Those two degrees can really make a difference. Also, consider refinancing if you are paying too high of an interest rate on your car loan or mortgage.
Think Twice Before Buying
Before you buy anything, think twice if you need it. Consider if that $30 shirt is really worth it! It might seem satisfying to buy things, but it is not fun when you see your checking account depleted by unnecessary spending.
Be wise and make smart choices with your money. By following these simple tricks, you will stay on track to reach your savings goal for 2015!