Money Saving Benefits and Best Practices
The benefits of building a strong savings account are numerous, as are the ways you can go about it. Contrary to what many people think, you don’t have to be wildly successful in your finances to do so. It just takes a plan and a little bit of determination.
Why It’s a Good Move
Here are just a few reasons why building your savings is a smart choice.
Protect Yourself from Emergencies – Stop thinking of credit cards as your emergency fund. This just creates a cycle of debt because ‘emergencies’ (more aptly termed annoyances) happen far more often than we like to admit. Boost your savings to stop accruing debt when an emergency strikes.
Pay Off Your Debts – Pay more than your monthly minimum and you’ll find yourself out of debt a lot faster. Save enough to pay off large chunks at once and you’ll save yourself a boatload in interest.
Save for a Down Payment – Renting is never cheaper than owning (especially when you account for equity and appreciation). If you like where you work and where you live, isn’t it time to stop renting and start owning?
Save for an Investment – Use your money to make money, and buy an investment property to start generating passive income. For many, investment properties are the gateway to true wealth.
Bolster Your Retirement Savings – You can never save too much for retirement. The real problem is that many people don’t even save anything. Create a separate retirement account and put what you can in it after your monthly expenses. It will grow faster than you think!
Where to Save
There are a lot of ways you can go about saving, and the odds are you likely have already started to formulate a plan. However, here are what many people have found to work for them.
Make a Weekly Grocery Budget and Meal Plan
Ever gone to the grocery store and not really known what you should get? When you do this, you usually end up spending more than you should. To curb overspending at the grocery store, look at your store’s coupons for that week when budgeting and use it as inspiration for your meal plans. Plan each and every meal and don’t buy anything that’s not on your list.
Stop Automatic Renewals
How many subscription services do you have? Paying for Prime, Netflix, Hulu and Pandora? Do you actually use them? Keep your favorite and drop the rest. Subscriptions trick your brain into thinking they’re cheap, but they’re not when you’re paying for five of them.
Limit Dining Out
Many people dine out when they’re tired and don’t feel like cooking. Give yourself a break and buy a couple of frozen dinners and fast meals the next time you’re at the grocery store. Eating out is fun, but to save your budget only do it once a week.
Find a Cheaper Cell Phone Plan
There are so many cheap cell phone plans out there, especially ones that don’t lock you into a contract and that offer unlimited calling and texting. Also, many offer data plans and allow you to use your current phone. With plans as low $20 a month, there’s not much to think about if you’re on a quest to save money.
Start Right Now
There’s never going to be a moment where it’s clearly time to start your money saving journey. You just have to make the choice.
Call Herring Bank to discuss savings account options today at (888) 283-4564.