It is hard to control one's impulse to spend when the salary is there. Top on the list of things to spend on are clothing, shoes, entertainment and dining out. It could be enjoyable to splurge but at the end of the day, you do not have money when you might need it. Be smart and follow these guidelines on how to save money for the future.
1) Have an emergency fund- have a separate savings account that is not linked to your checking account. That way, you will not be prone to using up money from your savings account. The emergency fund is for important items like sickness, accidents and tuition for your children. Use this fund only when necessary.
2) Have a retirement fund- some employers try to match your money in a 401 K. You can continue to contribute to your office retirement fund so you can see this grow. There are also other investments like a mutual fund that can serve as a retirement fund. You can invest in this. Set aside money every month and do not use the money in the account. Your money will increase faster this way.
3) Set aside money in your savings account to buy a house- if you are renting, it is a good idea to save money and buy a house in the future. A house is an asset that will give your more equity in the future. If you have enough money in your savings account, you might even qualify for a housing loan. Having money in your savings account is a proof of your stability and banks like that.
4) Set aside money in your saving account for investments- the money that is parked in your savings account can be used in investments like stocks, bonds, CDs and mutual funds. These offer higher interest rates and will make your money grow faster. Make sure that you know what these investments are all about so you know what you are getting into. Having money in your savings account will come in handy because you need money to make more money grow in investments.
5) Set aside money in your savings account to buy insurance- It is a good idea to have a health and accident insurance. Knock on wood but you will not know when a health or accident insurance might be needed. When you get sick, the health insurance will cover the cost of the medical expenses so this is a good investment. You will save money by getting health and accident insurance. Some people have never recovered from the expenses of getting sick or having an accident. It is best to be prepared.
6) Set aside money in your savings account to pay off your loans- paying off your loans is always a good idea. Some of the loans that need to be paid are high interest credit card loans, car loans and student loans. Some resort to consolidation since they do no have money in their savings account to pay off their loans. They are in effect getting another loan.
These are just a few tips that will guide you in saving for the future. You will continue to find out more along the way as you go on saving. Remember, save for a rainy day to have a bright future.
1) Have an emergency fund- have a separate savings account that is not linked to your checking account. That way, you will not be prone to using up money from your savings account. The emergency fund is for important items like sickness, accidents and tuition for your children. Use this fund only when necessary.
2) Have a retirement fund- some employers try to match your money in a 401 K. You can continue to contribute to your office retirement fund so you can see this grow. There are also other investments like a mutual fund that can serve as a retirement fund. You can invest in this. Set aside money every month and do not use the money in the account. Your money will increase faster this way.
3) Set aside money in your savings account to buy a house- if you are renting, it is a good idea to save money and buy a house in the future. A house is an asset that will give your more equity in the future. If you have enough money in your savings account, you might even qualify for a housing loan. Having money in your savings account is a proof of your stability and banks like that.
4) Set aside money in your saving account for investments- the money that is parked in your savings account can be used in investments like stocks, bonds, CDs and mutual funds. These offer higher interest rates and will make your money grow faster. Make sure that you know what these investments are all about so you know what you are getting into. Having money in your savings account will come in handy because you need money to make more money grow in investments.
5) Set aside money in your savings account to buy insurance- It is a good idea to have a health and accident insurance. Knock on wood but you will not know when a health or accident insurance might be needed. When you get sick, the health insurance will cover the cost of the medical expenses so this is a good investment. You will save money by getting health and accident insurance. Some people have never recovered from the expenses of getting sick or having an accident. It is best to be prepared.
6) Set aside money in your savings account to pay off your loans- paying off your loans is always a good idea. Some of the loans that need to be paid are high interest credit card loans, car loans and student loans. Some resort to consolidation since they do no have money in their savings account to pay off their loans. They are in effect getting another loan.
These are just a few tips that will guide you in saving for the future. You will continue to find out more along the way as you go on saving. Remember, save for a rainy day to have a bright future.
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Guidelines for your savings account to have a brighter future with savings account
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