This post was developed by In The Know's commerce team and brought to you by Bankrate.
Saving money each month might feel entirely out of reach if you're working your tail off simply to make ends meet. Between basics like rent and food, as well as additional obligations like student loan payments, establishing an emergency fund or putting money aside for a large purchase down the road might seem onerous.
Saving money each month, believe it or not, does not have to be that difficult. While you may not be able to save as much as someone who is further along in their career or in a different field than you, you can most likely save something every month. And, make no mistake, those small savings may and will develop into something much larger over time.
However, believe it or not, saving money each month does not have to be that difficult. While you may not be able to save as much as someone who is further along in their career or in a different field than you, you can definitely save a little amount each month. And, make no mistake, those small savings may and will add up over time.
Every year, many individuals make the resolution to save more money. If you were one of those folks, you may have had a wonderful start in January. Most resolutions, however, fall by the wayside around this time of year. But don't fully quit your aim! Saving money is a skill that everyone should learn.
However, believe it or not, saving money each month does not have to be that difficult. While you may not be able to save as much as someone who is further along in their career or in a different field than you, you can definitely save a little amount each month. And, make no mistake, those small savings may and will add up over time.
Every year, many individuals make the resolution to save more money. If you were one of those folks, you may have had a wonderful start in January. Most resolutions, however, fall by the wayside around this time of year. But don't fully quit your aim! Saving money is a skill that everyone should learn.
How to Save Money Even if You Have a Low Salary
1. Create a budget. This is the simplest and most straightforward way to begin your savings journey. Making a monthly budget may be intimidating for some individuals, but Bennett believes it doesn't have to be. "It may be as basic as creating a spreadsheet on your computer or jotting it down on a piece of paper," she explains. Begin by jotting down how much money you bring in each month, followed by what you spend. Bennett proposes categorizing items such as housing, transportation, food, insurance, and entertainment. "Add it all up and see what's left at the end." "That is the money you can save each month, and seeing it will help you not spend it on impulse purchases," Bennett adds.
2. First and foremost, pay yourself. Consider this one a mental game you can play on yourself. Create a line item in the budget specified above for savings. "It's now as formal as your rent or mortgage," Bennett explains.
Bennett advises automating your savings to guarantee that the box next to saves on your monthly budget checklist gets checked. "Many banks enable you to set up automated transfers between your checking and savings accounts on a recurrent basis, so you don't have to remember to move money since it's done for you." You will also be less inclined to squander that money."
3. Choose your bank carefully. When selecting a bank for your savings account, it is critical to consider the Annual Percentage Rate (APR). These rates might vary greatly from one bank to the next. Some banks, for example, offer APR rates as high as 0.55 percent, while others offer rates as low as 0.01 percent. Bennett recommends that folks who want to become serious about saving find an online bank like Ally or Marcus. Because they don't have to pay the costs involved with operating physical branches, they may typically offer higher APR rates.
While many individuals keep their checking and savings accounts at the same bank for comfort and convenience, Bennett says this is something to think about if you're concerned about tapping into your savings. "You may try placing your checking and savings accounts at various banks," Bennett suggests. "That will make accessing that money even more difficult."
Finally, when it comes to selecting the correct bank, be sure to check into any costs involved with keeping the savings account, as well as any minimum balance requirements.
4. Set up an Emergency Fund. Life may be unpredictable, which is why having an emergency fund is essential. This is money you've set up in case you lose your job or incur an unforeseen emergency, such as a vehicle repair or medical bill. "As a general guideline, have six months or more of your monthly costs in an emergency fund," Bennett adds. Bennett recommends having more than six months' worth of costs saved in your emergency fund if you are self-employed or have persistent medical concerns.
5. Set Financial Objectives. Do you want to go on a vacation or move into a new apartment? These are excellent short-term objectives for motivating you to save money each month. "Decide now how much you can set aside each month so that when the time comes for the trip, you've paid off that vacation and you're not going to go into debt," Bennett advises.
6. Resist the urge to Purchase Online. Nowadays, so many businesses make it so simple to buy stuff online. Make obstacles for yourself when buying online to help you cut down on excessive spending. Here are a few ideas to get you started:
Before making a purchase, wait 24 hours. You may discover that something you couldn't live without the day before is no longer as important to you the next day.
Unsubscribe or disable shopping alerts. These notifications are not only distracting, but they can also entice you to spend money that you could be saving.
Keep your credit cards out of shop accounts. Getting up from a computer and having to fetch your debit or credit card from your wallet is frequently enough to stop consumers from making a thoughtless online purchase.
7. Keep your Expenses to a Minimum. If you just make one lifestyle change in your drive to save more money, Bennett believes this is the most crucial. "Take charge of your finances by reviewing your budget, checking into your bank, and paying close attention to where your money is going." This will save you from staying up at night worried about your debts."
"Don't charge more on your credit cards than you can pay off every month!" Bennett says.
#EmergencyFunds #Savings #SaveMoney #budget
SOURCE: yahoo
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