Successful Savers & Investors
Saving money and investing takes time and persistence. You need to be in control of your personal debt and living within your means. It's not easy, and you may feel overwhelmed. To have money in your budget each month for savings and investment goals takes an ongoing financial commitment.
How do I make a Financial Commitment Stick?
You need to set aside today's money for your future goals. Successful savers think ahead. They don't just live for today, but they plan for tomorrow. They put their income toward saving and investing goals that are important to them. Savings goals include:
- Major purchases, including car and home
- Your children's education
- Retirement savings
- Emergency expenses
Stick to your Savings Goals
A key to successful saving and investing is being consistent. Stick to savings and investing month after month and year after year. Make saving a staple in your monthly budget and know that it is an essential part of meeting your future financial goals.
Plan for Financial Emergencies
Successful savers and investors know that financial emergencies happen. Your car may need repaired, the water heater may break, or an unexpected health crisis may occur.
You need to set money aside so that you are not in a bind when unforeseen circumstances happen.
A good rule to follow is to have three to six months of living expenses saved in an emergency fund. Having a few thousand dollars tucked away in a savings account can make a big difference if a large financial expense would occur.
Pay Yourself First
Before anything else, make sure money from your paycheck gets put aside for saving and investing. A good starting point is 10%.
Depending on your income and other financial commitments some savers and investors are able to save 25% or more of their income.
Get into a habit of saving first. Whenever your paycheck is cashed or deposited, move a chunk to a savings account and stick to it month after month. Also consider saving for retirement by joining an employer's 401K plan and having pre-tax money set aside. Opening an individual retirement account is another good saving and investing option.
Live Below your Means
If you spend every penny you earn, you will not have the money to set aside for future goals or emergency situations.
To be a successful saver, you must spend less than you earn on a consistent basis.
The secret to living below your means is buying what you need and not what you want to have. In today's society we often fall victim to the impulse buying influences in our lives. Retailers want you to believe that we cannot be happy without more stuff!
To live below your means is to create a lifestyle you can pay for and have money left over.
If you are spending more than you make, you will accumulate debt, making it more difficult to save. You also run the risk of damaging your credit if you overextend yourself on purchases and fall behind on your payments. Borrowing too much money can jeopardize what you could be putting aside for savings and future goals.
Harold Shepley and Associates can Help
At Harold Shepley and Associates, LLC, we have experience dealing with personal debt. We are a full service law firm that is client-oriented and will work hard to meet your needs from debt negotiation to bankruptcy. Call us today at 877-827-9006, or complete our easy to use contact form. We're ready to help!