Why is saving so important to you?

Saving money is the fundamental concept of financial planning, and it’s the key to our financial success. However, most of us don’t understand the important of having a saving plan, without it, we would never reach our financial goals.

Sounds simple huh? But in order to save money, we need some extra cash, right? However, a lot of people are living paycheck to paycheck, and some of them even have a negative balance in their bank account or some credit card debts. People don’t have enough money for all their monthly expenses, how can they get extra cash to save? All you need is a good saving plan. Here you’ll find the secrets and the power of saving.

First, think of something that you would like to achieve financially, both short-term and long-term, such as getting a down payment for your new car, or new home, with the dollar amount and the time frame that you can achieve it. This can be more motivated when you know what you are saving for.

Second, you need a budget for yourself. Create a worksheet and put down of your spending categories, set a budget for each one and stick with the budget next time when you go for shopping, groceries etc. Try to use more cash instead of credit card to prevent you from overspending too much.

Enroll to a saving program or open a CD’s account with your local bank. Enrolled to the 401K program if your company offers such great opportunity. The good thing about 401K is your employer will contribute the same of money to your 401K account as you did. So which meaning it’s double your saving and all the money that contribute to the account is tax-deductable.

Save all or most of the money into your bank account whenever you have unexpected income such as salary increase, tax refund or any other bonus that can give you an extra saving without additional

Leave a Reply

Your email address will not be published. Required fields are marked *