The saving habit is one of the best habits you can cultivate to enjoy long-term financial success. Savings help you set up an emergency fund, help you put aside money for big (and smart) financial investments, and help you enjoy money in the bank. Having “extra” money in the bank is a great feeling, and knowing that you have savings set aside helps you feel better about your finances.
The biggest myth about savings is that you need to be making more money to save. In fact, many people who don’t save claim that it is because they just don’t have enough. Even if you are living paycheck to paycheck and paying down big personal bad credit loan in Minnesota, there are still plenty of ways to save money each month:
1) Cancel a subscription or service you don’t need and put the difference into your savings account. Even $50 a month every month will start to make a difference over time. Every little bit helps.
2) Ask for a raise and have the difference in your paycheck automatically taken out of your account and put into a savings account.
3) Develop a budget and pay yourself first. Before you decide how much you will spend on other things, write down how much you will spend on savings. You then can just adjust the amount of money you spend on other things (such as dining out).
4) Save your pocket change at the end of the day and take it into your bank once a week or once a month. You won’t even miss this money, but it can help build a nice emergency fund or can help you pay off some personal loans.
Many people don’t save because it seems too hard to do so; spending money is just so much easier. Part of the secret to success, though, is making saving so easy that you don’t even have to think about it. Here’s how:
– Automatic savings from your paycheck. If you get your employer to deduct a certain percentage of your paycheck (such as 10%) and place it into savings or a retirement fund, you won’t even miss the money and you’ll be making regular contributions to your savings account. Ask your employer if they can do this.
– Debit cards with automatic savings. Some banks have special accounts which allow you to save each time you use your debit card. It works like this: each time you pay with a debit card, your purchase is rounded up to the nearest dollar (or the nearest five dollars, if you wish) and this difference is placed in your savings. Again, this is money you won’t miss and it can really add up to a nice savings account you can use for retirement or to pay off unsecured loans.
– Automatic account withdrawal. Any bank will withdraw a specific amount of money if you ask them to and place this amount in a savings or investment account. The money is automatically taken out, so there is no temptation to spend it somewhere else. You can even do this with your personal loans: have the bank automatically make payments on your personal loans so that you don’t forget or spend the money another way.
– Check out our savings guide which will help you free up more cash to put aside.
One reason why people don’t save is because they don’t see the point of it. Retirement seems far away, emergencies seem unlikely, and those after-Holiday sales are beckoning. If you don’t see the point of saving, it could be because you don’t have specific saving goals. Savings aren’t just for emergencies or far-off retirement. You can use savings to buy what you have always wanted.
The trick is this: don’t see savings as money you no longer have access to but rather see it as getting you closer to the life you want. Then, get three savings accounts. One will be your emergency fund. You will put one-third of your savings here and keep it there until there is a real emergency (such as a loss of job or a medical emergency). Keep putting in money into this account until you have at least 6 months of income in there. After that, every 12 months or so, remove half of your money from this account and put it in your long-term account. Then keep saving. Your long-term account, by the way, is the savings account where you will keep money for long-term goals – such as retirement, paying off your personal debts, and so forth. At least half of this you will want to invest for retirement. The other half should go towards debt-free living and getting of those personal loans with bad credit. The final savings account is your fun account – here is the money you will use for medium-range goals (such as a new boat or a great new suit). Just remember not to pick this account dry all the time. Splurge on two or three big purchases that make you feel amazing each year.
Look for savings accounts that offer few or no fees. Some banks now offer online accounts that include no fees unless you withdraw money. This is a great idea, as it encourages you to keep your money in your savings accounts.…
If you live paycheck to paycheck, rollover advance payday loans repeatedly and have plenty of credit card debt as well as personal loans, you probably know that you are spending quite a lot. Even if you don’t have lots of personal loans, having too much debt to repay easily can be a sign of trouble.
Spending less allows you to reply on loans less and lets you put more money towards student loans, mortgages, personal loans, and other forms of debt so that you can get out of debt faster. Plus, savings can mean more money in your savings account or emergency fund.
Saving doesn’t have to hurt and it does not have to be about deprivation. In fact, saving can be all about having more of what you really want. Keep track of every tiny expense for a week or a month – how many of your purchases really bring you pleasure? How many change your life for the better? The truth is, many of us spend cash on things we waste, throw away, and don’t really enjoy. Save on these items – rather than scaling back on true pleasures – and you’ll save plenty in 2023.
Here’s how to do it: each time you are about to make a purchase, ask yourself whether you really want to buy what you are about to buy? Do you love it? Will you use it? Will in change your life one to five years down the line? Will it bring you pleasure? If you’re getting “no” answers, think twice. Then, determine how much of your life you are giving away for the thing you are about to buy. If you make $20 an hour and you are considering a $100 sweater, you are considering a purchase that amounts to five years of your life. Is the sweater worth that much? Considering purchases in this way can make a big difference and can free you to say “no” and save your money for those items that really are worth it to you.…
You can start improving your credit score right now, so that you can enjoy better jobs, better apartments, and better interest rates on personal loans. Here’s how to get started:
1) Check out our guide to credit repair to learn the basics.
2) Make it easy to pay your bills on time. Paying your bills on time can be one of the fastest and easiest ways to improve your credit score. If you forget or if you are struggling, consider setting up automatic bill payments with your bank so that you do not have to even think about it. If your bills are expensive, find ways to make them more affordable. For example, maybe you can afford to pay your personal loans each month if you get rid of some extra services or subscriptions you don’t need.
3) Don’t let mistakes mar your credit rating. Order your credit reports now from the credit bureaus and carefully go over them to make sure that there are no mistakes. If there are, report them to the bureaus and in a few months double-check to make sure that the mistakes have been fixed.
4) Pay down your personal loans and credit cards. Yes, it may take some time, but it will ensure that you qualify for more than just bad credit loans. Start with your highest-interest personal loans first, such as your payday loans or credit cards. For credit cards and lines of credit, try to maintain a balance of no more than 30% of your credit limit. Having 60% available helps to improve your credit score.…
And have credit cards to pay off as well as unsecured loans, student debt, lines of credit, and other forms of credit, it can seem like it will be hard to dig out. However, there are ways to make 2023 sunnier in terms of your finances. You can get a fresh start in several ways:
1) Develop better financial habits. Start saving and start learning about finances and your options. Develop a plan to pay off your bills on time. Good financial habits take some time, but they will eventually lead to better financial health.
2) Declare bankruptcy if you have to. No one likes to think about it, but if you truly have no other options, bankruptcy lets you get out from under a mountain of debt and allows you to start over. You will have to slowly rebuild your credit and your assets, but it can ensure that you do get to start over.
3) Organize your finances. Look at all your accounts, student loans, credit cards, and personal loans. What do you owe and to whom? How much are you making each month? How much do you have in savings and assets? Consider where you stand and then develop a way of organizing your finances. Develop a bill payment system, for example, so that you will not miss bills again. Set up a filing system for your receipts so that you are not scrambling in April. Getting organized makes you more in control and lays down the groundwork for better financial habits.
4) Develop a plan. After looking at your finances, determine what you need to do in order to do better financially. Do you need to make more money (maybe by diversifying your income)? Do you need to save and invest more? Do you need to pay down your unsecured loans? Write out your plan in detail and break it down to small steps you can start doing today to improve your financial tomorrow. Even if you just put $5 in your savings account today (and do the same tomorrow and the day after that…) you are paving the way to a better life.…