As we approach 2013 there are many people that wish to increase their savings in the new year or start saving on a more regular basis. Indeed your savings are an important part of your financial future and should be well taken care of now to help you later. With that in mind we’ve put together a list of Tips for saving money that will help you to do just that. This is Part 1 of 3. Read them, use them and watch your savings grow in 2013.
First the bad news; very few people have an emergency savings account that’s adequate to help in an emergency and about the same amount have no saving s at all. The good news is that saving can be done, in many cases, quite easily if you have a plan, a procedure and a budget.
An excellent idea and one that we highly recommend is to put your savings on ‘auto-pilot’. Having a part of your check deposited directly into your savings account is thus a very good idea. You won’t miss it in most cases if you put 10% of your check away every pay period.
If you’re looking to set up an emergency fund your account for this must meet 3 criteria; it must be liquid, it must be free of investment risk and it must earn a return that is higher than inflation. Check with your bank to make sure that all 3 of these important factors are met when you start your account. You can usually find an account like this with little trouble and with little or no minimum deposit. Bankrate.com can help with this so go there first.
Over 75% of credit unions and 45% of large banks still offer free checking accounts so, if you’re looking to open one, make sure you choose a bank that has this excellent service with no-fee service and no minimum balance. They’re out there so look until you find one.
Very few people do one thing that can help immensely with savings; tracking their spending on a monthly basis and using a budget. In fact just over 58% don’t perform these vital tasks. To do it right you’ll need a budget to track your spending so set that up first. (See our other Blog articles for ‘How to set up a budget’.) Then you’ll need to track your spending to make sure you stay on budget.
OK, there you have a few of our first Tips. Start using them and come back for Part 2 when you’re ready for more.