In 2017 Capital One wanted to bring awareness for the need to save money. Sometimes, the hardest thing about saving money is getting started. We have a few steps here to help you get things rolling.
In order for you to know if you have enough savings, knowing what your costs are is going to be important. Write down the monthly bills that you have such as your mortgage or rent, insurance, vehicle, cell phone, and also keep in mind things that you pay quarterly or even on an annual basis. Sometimes you can save quite a bit of money if you pay your car insurance on a semi-annual basis instead of monthly. Those amounts can really add up.
Organize those costs into a budget. This budget should span the entire year as some expenses, like auto insurance, may only happen quarterly or semi-annually.
Does your budget have a spot for savings? The recommendation for savings is 10-15% of your income each month. Don’t feel discouraged if you cannot put that amount away. Don’t give up altogether. Review your budget again and see what adjustments you can make to start saving something. Start off small, as little as $5-20. Every little bit helps!
Periodically review your budget. Make sure to review your expenses and see where you can cut back. You may have services, programs or subscriptions that you’re not using. Perhaps you can employ some savings strategies by thinking outside the box.
Your goal could be to develop an emergency fund, save for a home or down payment for a car or saving for a child’s education. Once you have your goal, estimate the amount you will need and when you’d like to achieve this goal so you know how much you will need to save to meet your goal.
Almost all banks offer automated transfers between your checking and savings accounts. You can often even choose a percentage of your check to be direct deposited into a savings account. An automated transfer is a great way to save since you don’t have to think about it and it may reduce the temptation to spend money
In summary, creating a budget may seem daunting, but in the end your financial well being depends on it. Follow these steps and you will be well on your way. If you need a little help on the way please feel free to reach out to Southwest for some help.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.