Making Sure There's Always Money In The Bank
No matter who you are or where you find yourself in life, it is imperative that you build up
money management skills. We don't come into the world knowing how to save money, therefore it
is crucial to learn how along the way. Yes, sure it can be difficult, but learning to do so will
oftentimes save you from financial hardship in the long run. You may have to make some key
lifestyle changes that are hard at first, but you will thank yourself later on in life for learning how to
keep money in the bank.
The first thing you can and should do, is keep an emergency fund. Start from scratch if you
don't have one already. Make a weekly, bi-weekly, or monthly commitment to stash away a certain
amount of cash regularly. One thing you will find, is that by doing so you're better off then many
middle-income families. A surprising amount of people who have cushy, well paid jobs, have little
to nothing in the bank. The good thing is, that you can start where you are. Make a commitment at
first to build this fund to about $500. This is a good starting point. From there you can add more
and more. The more you add the more comfortable you will feel.
Budgeting
The next thing you need to do, is figure out a reliable budgeting system. One easy way to do so, is
to keep a stack of your receipts. On top of that, you want to put them into individual categories.
That way they are organized, and easy to comprehend, as you go over your numbers. After an
entire month of doing so, you have a clear glimpse at what you're spending your money on, and
where to alter your budget. If you find that overspending is an issue, then one thing you can try is
designating a set amount of cash at the beginning of each month, in an envelope. Hold yourself to
- Don't allow yourself to spend any more than what is allotted in your monthly envelope.
Saving money isn't so much about spending less, as it is about actually stacking money away.
You want to be proactive in putting money aside into your savings account. Rather than
complaining about the fact that you have $500 less to spend this month, think in positive terms
about how you have $500 more in savings. Your future self will thank you. You will now be
sufficiently working towards having money for retirement, school, and other expenses along the
way. One way you can do this is to set up an automatic savings account. This way that every time
money is deposited into your account, a certain amount is stashed away without your intervention.
For a lot of people this is the solution.
When you're just starting out, you want to go after short-term savings goals. Start out at $20 a
week. Usually when people are starting out at learning how to save, they are more successful if
they start off small. This will allow you to start saving for retirement at the right time. You don't
want to be 5 years away from your ideal retirement date, without having already saved for it. The
younger you are, the better position you are in to start saving for your retirement. Use the time that
you have between now and retirement to build compound interest.
401K’s And Other Resources
A lot of employers will match whatever you put into your own retirement. Usually this is done
through a 401k. Take advantage of this. If you don't, you will be missing out on added money that
you could have potentially enjoyed later on in life. When tax refunds, and things like bonuses come
around, put a portion of them or the entirety into your savings account. This is where a savings plan
can come in handy. Statistics show that those with a savings plan are twice as successful in
Saving. Many banks will help you make a pledge, and be useful tools alongside Cash Kitty in
keeping you accountable to meet these goals. On top of that you can inquire with who you are
banking with about advice and tips along the way.
Loose Change Adds Up!
Keep in mind, that your loose change accumulates faster than most of us think. Especially
over the course of a year or so. All of this loose change, in your cup holder in your car, on your
desk, on your nightstand, can all be added into the emergency fund.
Take into consideration the unnecessary expenses you have purchased over the last 24 hours.
By doing so you will help to condition your mind so that you don't repeat the process in the future.
Unnecessary purchasing is especially easy online. So hold yourself accountable! Don't be afraid to
treat yourself every so often. When you do so, you can even use it as a tool to save. Match the
amount of money you spend while doing and put it into your savings account.