As you consider your finances and your money management practices, it is important to understand how saving money plays a critical role in your future financial success.
Most of us follow a very simple money management plan. We SPEND some, and we SAVE some. It’s how much we do of each that makes a difference in our financial future. The first step, “spend some,” is easy, but without a plan and a little discipline, we may never get to the second step, “save some.”
Regardless of how much or how little your income is, or what life stage you are in, it’s important to make saving a priority. The earlier in life you commit to saving money, the more financially secure your future will be. Your mind will be more at ease when you have money in the bank for both planned and unexpected expenses.
- Ability to handle the unexpected (medical bills, auto repairs, home repairs, etc.)
- “Big ticket” purchases (car, home, etc.)
- Retirement and college education
Making saving a priority isn’t magic, it’s a mindset. The key is to save first and spend second. While that may sound simple, it is definitely not easy. Here’s some tips:
- Direct deposit a portion of your paycheck directly to savings. Out of sight, out of mind.
- Set savings goals and celebrate them. It can be difficult to save money unless you’re motivated to reach a goal. Set a goal and keep it visible. Check your progress monthly and reward yourself when you reach milestones along the way.
- Keep the end in mind. Delaying instant gratification is never easy, but keeping your eye on the prize can help you forego impulse purchases in order to reach that dream vacation or down payment on a home.
Click here to check out our cash saving tips.