How To Save Money
Tips on saving money in your daily life
A wise man once said – “It’s not what you earn, it’s what you save.” It’s not unusual to meet a lower middle class family who has more in savings than a family of supposedly wealthy doctors and lawyers. Having good saving habits will decrease your reliance on debt and lead to a better financial future for you and your family.
This section includes a few resources that will help you get started with saving money. Remember, if you focus on saving now you’ll have more to spend in the future on things you really need. Let’s get started –
Phase 1: Increasing the money in your pocket
The easiest way to increase your savings is to decrease your expenses. That way, more of your paycheque will be going to your bank account and less of it will disappear immediately. We suggest setting a goal of saving 10% of your income each month. But even if that may be difficult, remember that every bit of savings will help down the road.
Check out these resources to help you get started with your saving:
Phase 2: Where to keep your savings
Now that you’ve made a commitment to save, the next step is to decide what you will do with the extra money. There are a variety of options out there ranging from simple savings accounts to mutual funds and stocks. Each of these carries a different amount of risk and return. A common strategy is to diversify your savings to include a wide range of investments in order to find the best balance between risk and reward.
However, one of the most important things to do with your savings when you are first getting started is to set up an emergency fund. You want this fund to have enough money in it to allow you to cover all of your expenses for 4-6 months. This money should be used only when you truly need it – like in the event of a sudden job loss or another financial emergency.
Here’s one resource that you will help you get started –
Need more help?
Saving money is a long-term commitment. It requires you to be vigilant about your budget each and every day so that you can achieve your goals. Are you ready to get started?
Our trained credit counsellors are ready to give you an individualized savings plan or to help you with your current debt problems. You can call Consolidated Credit today at 1-888-294-3130 or get started now by filling out a Free Debt Analysis.