A Beginner’s Guide to Saving More Each Month
At Cove Federal Credit Union, we know that saving money can seem like a daunting task, especially if you don’t have a lot of expendable income left once the bills are paid. If you want to start saving, but aren’t sure where to start, read on. We’re offering simple saving strategies to help you start saving more money each month.
Plan Ahead. Do you find you’re overspending at the grocery store each week? To avoid feeling the pinch in your bank account by the end of the month, make a shopping list of items you need and stick to it.
Start Simple. When budgeting for the first time, use a simple formula. Subtract your monthly bills and expenses from your salary. The difference is what you can spend on things like clothes, food, and entertainment. But don’t forget to set aside money for savings, too. Even $50 a month makes a difference.
Wait it Out. To avoid impulse purchases, especially large ones, follow the 30-day rule. Often, after a month has passed, so has the urge to buy the item you were contemplating. This helps give you better perspective on items you’re on the fence about.
Know Your Rates. Do you know what your credit card’s interest rate is? If you’ve been a loyal cardholder and consistently make payments on time, you might qualify for a reduced rate. Find more information on Cove’s credit cards.
Set a Goal. Whether it’s to have an emergency fund of six month’s expenses by the end of the year, or to buy a car, setting a goal gets you motivated, helps you keep your eye on the prize, and put money away each month.
Wherever you may be financially, it’s important to understand that the basis of financial wellness is saving. If you have savings in place, when you need to make a large, unexpected purchase – like new tires for your car – you’re not pulling money from your current paycheck and throwing yourself into crisis mode. The key is not to dwell on the amount you start with, but to take the first step and choose to save. That first action repeated becomes a habit, and you’re on your way to reaching your family’s financial goals.