Do you think you saved enough money for your future last year? If you didn't save at least 10% of your earnings, you didn't save enough. If your savings fell short, the only solution is to take charge of your financial future right now and start saving more money.
Saving for your future doesn't have to be hard work. Actually, there are many simple ways to cut spending and increase their savings. Here are some tips to help you get on the right track.
* Set goals. Setting specific financial goals will give your savings purpose. For instance, it's advisable to have an emergency fund of approximately six months' worth of living expenses to cover any cash outlays that may catch you by surprise. Nothing can derail your financial plans faster than a series of mishaps that force you to take drastic financial measures. Other saving goals may include a college savings fund, vacation fund, or a fund for major purchases.
* Automatic Deductions. Treat your savings as your most important monthly bill. Write a check to savings first, or have your savings automatically deducted from your checking account or paycheck.
* Contributions to tax-deferred retirement accounts. This is a smart way for you to save money for retirement. If your employer offers a 401(k) or SIMPLE retirement plan, contribute the maximum amount allowed. If your employer offers no plan, contribute to an individual retirement account (IRA). The money you contribute to a retirement account can reduce your taxable income and grow tax-free until withdrawn.
* Track your Expenses. Another way to maximize savings is to track your expenses for a few months. This is a great way to spot unnecessary or wasteful spending; it doesn't take much work to see potential cutbacks.
* Be in control of your finances. Do you pay the balance of your credit cards each month? Take control of the use of your credit cards. The amount you pay each month in finance charges could go to savings instead. Make a budget and try to live within it by controlling the use of your ATM card. Get in the habit of giving yourself a regular cash allowance and stick to that amount.
Saving for your future is very important and doesn’t have to be painful. If you would like more tips on how you can save for your future, contact our office at (260) 497-9761 to schedule an appointment with our advisors so that we can help you get your future back on track.