You’ll Never Guess How You Could Save Money!!!
It may seem impossible to build a savings account when you are having trouble simply paying your bills. However, there are steps you can take to build a savings account that will pay you many dividends in the months and years to come.
How Important Is A Savings Account?
The fact is that a savings account is a necessity, not a luxury, if you want to be able to manage your finances. Having a savings account, even a small one, can be the difference in being able to meet emergency expenses or having to overextend yourself with loans that you will later regret. If you are having trouble saving money, you are not alone. According to recent reports, one in five Americans has no savings at all, and another 62 percent have less than $1,000 saved.
How Much Savings Do I Need?
An ideal goal for your savings account is six months’ salary, although one months’ salary is a good starting goal. This means that you should be saving at least ten percent of your income each month if you want to have your savings funded within a year. How can you possibly save ten percent of your income if you cannot pay your bills? The answer is not surprising: you have to economize, sometimes painfully. This starts with being honest about exactly how much you are spending. In order to make a budget, you should track your spending for a week or two at a minimum; a month is better. Once you have a clear idea of where your money is going, it is much easier to find ways to cut expenses.
Building a Better Savings Account
If you have any money available for savings immediately, such as a windfall from a gift or inheritance, put it in safe growth vehicles that will bear some interest. This has a two-fold purpose: you earn money on your money and you are not tempted to spend it as easily, as there may be penalties for withdrawal. Of course, you should always keep some money aside that you can access quickly for an emergency. Once you have set up your savings account, you should make regular deposits to it. This should be considered a “bill” that you pay every month, not an option. If you are having trouble paying your bills, call the attorneys at Oswalt Law Group in Phoenix. We can help you decide if bankruptcy can put you on the right financial path and give you a fresh start.