For many, saving is the most challenging aspect of money management. Like Christmas, you can save money all year and have your savings eliminated with one financial emergency. Savings is necessary and should be a primary attribute of an individual’s money management. Fortunately, there are a multiplicity of ways to save money.
Once an individual discovers the best savings strategy for them, it should be implemented and routinely repeated. Automatic transfers to financial institutions to which an individual does not have easy access or a debit card, can result in the avoidance of the temptation to tap into the savings account. Minimizing expenses is always a meaningful methodology for saving money. Reducing the number of times that an individual eats out can quickly add up to good savings amount. Eliminating online shopping will also leave extra money in your checking account,
Set a realistic savings goal. Manage, monitor, and maintain the savings strategy. Assign a percentage of any additional income to your savings. This may be 10%, 15%, 25%, or as much as 50%. Continue to save even if you have surpassed your savings goal. As an emergency fund, it is recommended to have at least three (3) months of living expenses and as much as 24 months of living expenses, depending upon the lifestyle and size of your family or number of financial dependents.
Cancel any unused monthly subscriptions that you may have and redirect the money for the cancelled subscriptions to your savings account. Reduce the level of spending for entertainment. Instead, seek out free community events for family fun and enjoyment. Continue monitoring and reviewing your expenses to identify cost saving factors.
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Nicole Michelle
Finance and Money Wiz
December 31, 2019
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