Did you know that approximately 35% of all adults in the U.S. have only several hundred dollars in their savings accounts and 34% have no savings?
Saving money can be difficult. Even when you manage to get a salary increase or receive a bonus, it’s often hard to put money away at the end of the month. Without a savings account, emergencies that come up — from auto repair to the purchase of a new major appliance — can set you back financially. Some experts stress the importance of, at a minimum, having enough to cover three to six months of expenses in an emergency fund, should you be hit by a medical crisis or a layoff. This can create a less than optimal cycle: if you incur debt you can’t pay off, your credit will suffer; if you have a poor credit score, you may not have credit available when you need it or will pay a higher rate of interest if you do borrow. It’s crucial that you have and contribute to a savings account. Here are three tips to help you do just that.
- Pay Yourself First: It’s easy to convince yourself that you don’t have enough money to save if you wait until the end of the month to put money aside. However, if you deposit a portion of your earnings as soon as you receive it, or better yet, have a portion of your paycheck automatically deposited into your savings account, you’ll find that there is always a way to work with less; mentally, you’ll adjust to making the new amount, while you’ll be building your nest egg before you have access to it.
- Make a Budget and Stick to It: Organizing your spending habits is just that… a habit. If you create a budget and stick to it, it’s easier to make ends meet. If you limit your spending to things that are not really important to you, it will give you room for things you enjoy doing while also ensuring you’re not wasting money each month. Online purchases make it easy to spend, and each purchase, whether you need it or not, is just a click away! Try limiting online purchases to what you need for the month that is within the budget you’ve established rather than clicking on the latest promotion.
- Add Up the Little Things: When was the last time you thought about your subscriptions? Today’s digital era makes signing up with video and music services easy but you may find yourself spending money each month, despite the fact that you may not be taking full advantage of the services. Eliminate what you don’t really use. Then look at all your expenditures and decide what is a “have-to-have” rather than a “nice-to-have.”
With the proper discipline, you’ll have a comfortable sum available should you ever need it. And, saving money has become more convenient with online banking. Whether you use a desktop, laptop, tablet or phone, transferring funds from your checking account into your savings account has never been easier. Contact First Bank today to set up your savings account!