9 Secrets of Profitable Saving

Having a safety net of accrued savings is something all of us strive for. It provides comfort and security knowing that when that inevitable rainy day comes we are prepared for it. Unfortunately, despite best intentions many are not able to achieve these savings goals. But there are those out there successfully and regularly saving money, which begs the question: what are they doing differently than I am?

1.       Save Regularly

 You may not be able to save a large amount every month but a small amount is better than nothing at all. Not only do these small amounts add up over time, but saving something every month ingrains the habit of saving into your routine. 

2.       Save At The Start Of The Month, Not The End

This is one of the most commonly made mistakes of saving. Most people wait until the end of the month and save any money that is left over. This strategy allows for errors in budgeting to eat up any potential savings. Instead, take a predetermined amount of money factored into your budget right away from your paycheck and deposit that into savings.

3.       Keep Control Of Your Spending

To a profitable saver saving money is a priority. This means taking a cold, hard look at your monthly spending habits and determining areas where you can cut spending in favor of a more important goal.

4.       Actively Manage Your Money

Base interest rates for banks right now are around 1% or lower. But, successful savers take advantage of higher interest rates by switching their savings to more attractive accounts. For example, many accounts offer higher interest rates for 12-months. By keeping track of these bonus offers and moving accounts you can earn consistently better interest rates on your savings.

5.       Have An Emergency Fund

You might be saving for any number of reasons; for a holiday, to overpay the mortgage, to help pay for school. In addition to these purpose driven savings accounts it is important to have an emergency fund of money that is only used for … emergencies. Profitable savers don’t factor this into their savings goals.'

6.       Clear Your Debts First

One of the golden rules of personal finance: pay off your debt before adding to savings. This is because invariably debts such as credit cards have high interest rates, while savings accounts have low interest rates. 

7.       Keep Track Of Your Loose Change

Loose change adds up. Put the extra change in your soda or ashtray to better use and put it in your savings. You will be surprised how much extra money you have at the end of the year from compiling all your loose change to one place.

8.       Set A Savings Goal

Setting a goal in your mind is motivating. It is an extra reason to keep at it. If you are saving for something specific, work backwards. Instead of deciding how much you can save each month, consider the total amount needed and how quickly you need it. Then it’s simple math to determine how much you need to save to reach your goal.

9.       Start Young

Studies have shown saving as a child helps you save as an adult. There isn’t anything you can do about that now, but you can help instill good saving habits in your kids, nieces, or nephews. Every little bit counts.

This information is brought to you by Your Finance – providing unsecured US loans for when the best laid savings plan simply aren’t enough.

Visit: https://installmentloanscompany.com