Making Sure There is Always Money In The Bank

Created: 2017-04-18 09:00:00

Making Sure There's Always Money In The Bank

No matter who you are or where you find yourself in life, it is imperative that you build up

money management skills. We don't come into the world knowing how to save money, therefore it

is crucial to learn how along the way. Yes, sure it can be difficult, but learning to do so will

oftentimes save you from financial hardship in the long run. You may have to make some key

lifestyle changes that are hard at first, but you will thank yourself later on in life for learning how to

keep money in the bank.

The first thing you can and should do, is keep an emergency fund. Start from scratch if you

don't have one already. Make a weekly, bi-weekly, or monthly commitment to stash away a certain

amount of cash regularly. One thing you will find, is that by doing so you're better off then many

middle-income families. A surprising amount of people who have cushy, well paid jobs, have little

to nothing in the bank. The good thing is, that you can start where you are. Make a commitment at

first to build this fund to about $500. This is a good starting point. From there you can add more

and more. The more you add the more comfortable you will feel.

 

Budgeting

The next thing you need to do, is figure out a reliable budgeting system. One easy way to do so, is

to keep a stack of your receipts. On top of that, you want to put them into individual categories.

That way they are organized, and easy to comprehend, as you go over your numbers. After an

entire month of doing so, you have a clear glimpse at what you're spending your money on, and

where to alter your budget. If you find that overspending is an issue, then one thing you can try is

designating a set amount of cash at the beginning of each month, in an envelope. Hold yourself to

  1. Don't allow yourself to spend any more than what is allotted in your monthly envelope.

Saving money isn't so much about spending less, as it is about actually stacking money away.

You want to be proactive in putting money aside into your savings account. Rather than

complaining about the fact that you have $500 less to spend this month, think in positive terms

about how you have $500 more in savings. Your future self will thank you. You will now be

sufficiently working towards having money for retirement, school, and other expenses along the

way. One way you can do this is to set up an automatic savings account. This way that every time

money is deposited into your account, a certain amount is stashed away without your intervention.

For a lot of people this is the solution.

When you're just starting out, you want to go after short-term savings goals. Start out at $20 a

week. Usually when people are starting out at learning how to save, they are more successful if

they start off small. This will allow you to start saving for retirement at the right time. You don't

want to be 5 years away from your ideal retirement date, without having already saved for it. The

younger you are, the better position you are in to start saving for your retirement. Use the time that

you have between now and retirement to build compound interest.

401K’s And Other Resources

A lot of employers will match whatever you put into your own retirement. Usually this is done

through a 401k. Take advantage of this. If you don't, you will be missing out on added money that

you could have potentially enjoyed later on in life. When tax refunds, and things like bonuses come

around, put a portion of them or the entirety into your savings account. This is where a savings plan

can come in handy. Statistics show that those with a savings plan are twice as successful in

Saving. Many banks will help you make a pledge, and be useful tools alongside Cash Kitty in

keeping you accountable to meet these goals. On top of that you can inquire with who you are

banking with about advice and tips along the way.

Loose Change Adds Up!

Keep in mind, that your loose change accumulates faster than most of us think. Especially

over the course of a year or so. All of this loose change, in your cup holder in your car, on your

desk, on your nightstand, can all be added into the emergency fund.

Take into consideration the unnecessary expenses you have purchased over the last 24 hours.

By doing so you will help to condition your mind so that you don't repeat the process in the future.

Unnecessary purchasing is especially easy online. So hold yourself accountable! Don't be afraid to

treat yourself every so often. When you do so, you can even use it as a tool to save. Match the

amount of money you spend while doing and put it into your savings account.

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk