So, you want to start saving?
Money can be a difficult thing to manage. Planning… Budgeting… Saving… everybody has a different strategy! Below are 3 tips that will guide you in the right direction:
Create a realistic savings goal.
First off, your savings must be realistic. It doesn’t matter if you’re saving for a big ticket item or retirement. Create a short term and long terms savings goal with predetermined benchmarks that are achievable. Creating unattainable goals will hinder your confidence and lower your will to save. Start with an obtainable goal and raise it only after you’ve hit your mark over a 5 or 6 month period. Depending on your goals, saving 5-15% of your paycheck is a good place to begin.
Choose a savings account that fits your plan.
Learning about different types of savings accounts and how they affect your money can make a difference in the long run. Money market accounts or certificates are used for growing money quickly in the short-term. Use an IRA or jumbo certificate if you want to grow money in the long-term or for retirement.
Budget. Budget. Budget.
Are you buying coffee every morning before work? Do you find yourself going out to lunch each day? Most people don’t realize how much money you’re able to save each year by cutting these routine purchases each day. For starters, try making coffee at home and/or start taking a lunch to work. Believe it or not, this habit can cut half or more of your morning and lunch expenses! It’s perfectly fine to go out and eat every once in a while. However, making an everyday habit out of it will affect your savings. We’ll dive deeper into this topic in our next savings-focused article…
Heritage has great staff to help you get started and answer any questions you may have on our savings account options. Click below to find out more…