Lets Talk Savings

02/21/2016

 
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Today kicks off America Saves Week, which is sponsored by America Saves.  From February 22nd until the 27th different topics will be discussed to promote savings as a goal through automation.  Below is a list of the savings strategies that will be promoted each day.

Monday February 22nd: Save Automatically
Tuesday February 23rd: Assess Your Savings
Wednesday February 24th: Save for Retirement
Thursday February 25th: Save for Emergencies
Friday February 26th: Saving at Tax Time
Saturday February 27th: Paying Off High Interest Debt


You can follow the conversation on Facebook or Twitter by looking up America Saves @AmericaSaves.  The official hashtag to follow is #ASW2016.  One of the cool things that is happening is the opportunity to win $500 toward your savings goal.  To enter just tell @AmericaSaves what you are saving for using a photo and #imsavingfor, more info can be found here http://ow.ly/Ywl6K .


                                                                  Things to Consider about Savings

Do You Have Enough Saved

Determine how much is enough. Make a plan to get more saved.  Then stick to that plan.



Finding Extra Money


Reduce  your current expenses.  Lots of people typically have at least one thing they are paying for and not using. You can also sale items no longer needed.  If possible look for additional income sources as well.


Make The Sacrifice


What can you go without?  It helps to figure out what is worth making a sacrifice for.  Once you have something worthy of saving for it helps you achieve your goal.


What Are You Saving For?


Consider all the areas where you need to be saving.  Some common things people save for include: debt, healthcare, retirement, education, and emergency fund.


Don’t Live as A Miser


Be frugal, but don’t overdo it.  If you overdo your savings you may deprive yourself of many things which you enjoy.  Depending on your financial situation, it could be appropriate to take an aggressive approach toward saving.  Ideally you want to find balance between your savings and your lifestyle.


Make Automation an Everyday Thing


If you save automatically you won't miss it.  The balance will continue to increase, and you won't feel the pressure of trying to save on a regular basis.  Automation can be done with a dollar amount or a percentage of earnings.  A benefit of automation is that it helps to ensure you will have funds available during an emergency.


It All Adds Up


The amount does not matter, so much as the habit of saving matters.  Small amounts will grow over time.  A good place to start is with your spare change.  It might surprise you just how much your spare change adds up to.  Use the momentum you get from saving small amounts to increase your savings rate.


Not Sure How Much to Save


This is common for a lot of people.  Ideally you should save as much as possible.  Consider how you live now and how you want to live in the future.  Try to consider how the amounts needed will adjust based on different life stages.It is a good idea to at least have enough to cover a few months of expenses in case you get in a bind.


Consider Using a Savings Chart


A savings chart can be a great idea, because it provides a specific dollar amount to save over time.  By using a savings chart it is easy to track the progress you make.  It gives you an expected outcome at the end of some period of time, like over the course of a year.  It is also easy to adjust the amount being saved depending on how much you can personally allocate toward your savings goals.



 


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