Plan Your Savings

PAY YOURSELF FIRST

Every time you receive a paycheck, pay yourself first. It will appear painless if you make arrangements with your employer or bank for an automatic deposit. Put in a consistent amount of each paycheck–it’s okay to start off small–into a savings/investment account you won’t touch. Try to save at least 10% of your income. Watch your money grow.

CREATE AN EMERGENCY SAVINGS ACCOUNT

If you have money set aside in an emergency fund, you won’t have be so quick to dip into your regular savings. Many financial advisors recommend having at least 2-3 months of living expenses saved  up for difficult times. Some advisors may be more conservative and recommend saving more. This special account will give you a some peace of mind in case of emergency.

TAKE ADVANTAGE OF YOUR EMPLOYEE BENEFITS

Some companies offer benefit packages that will help you save money. Read over your benefits carefully and ask questions if you need more clarification. Be clear of the rules, otherwise, you may lose money. You may be able to save through health savings plans, tuition reimbursement, and/or employer matched 401(k) plans.

CREATE SAVINGS FOR BIG EXPENSE ITEMS

If you save money for the big expense items you need or want — clothing, appliances, furniture, car, vacation, addition for home, new landscaping, new home, etc. —  it makes the buying process less stressful since you will know where the money is coming from. This can reduce the amount of credit used. You may even be able to negotiate a lower price if purchasing items with cash.

Remember, your savings is power.