How to start saving money

You want to save money so you can pay down your debt and eventually retire some day. Here’s some sensible tips to help get you started.

Use these tips to help make savings a consistent part of your budget:

Pay yourself first so you can put money toward your goal before you can spend it.  Ideally, five to 10 percent of your net income should go toward some type of savings. Sound like too much? Then start with a set number of dollars a week and once you are comfortable with that amount, continue to increase it.

Take the time to track your expenses for a month to see where your money is going. Many people have no idea how much they spend each month on their relatively small  everyday costs. By doing this, you’ll know where your money goes and be able to identify areas where you can reduce spending.

If your employer offers direct deposit, take advantage and have money directly deposited into your savings account.

Participate in a work-related retirement program.

Save any additional income, such as raises, bonuses, tax refunds and/or overtime.

After you pay off of an installment loan, student loan and/or credit card, continue to pay the monthly amount to your own savings account.

Save your loose change. It’s a surprisingly easy way to save.

Make it a priority to pay off high-cost debt. This will free up more money for savings.

Most importantly, give your savings plan time and stick with it. It will be well worth the effort to have a financial “safety-net” in place.

For more on how to start saving for retirement - click.

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