Don’t Be Scared to Save

October 31, 2016

Jar with coins growing a leaf

Are you spooked at trying to save more money? Everyone knows that the sooner they save, the farther it’ll go in the long run, but saving is more than just spending less, it’s about maximizing your income. By setting realistic budget goals and spending less, your money can have a better shelf life than the benefits of spending now and saving later. The financial advisors at Summit Place Financial feel that taking the steps listed in this posting will help those who aren’t the best at setting aside funds and be a great refresher for those of you who are already expert savers.

The best way to begin saving your earnings is to take a certain amount off the top of each paycheck and setting it up to automatically move over to a savings account or retirement plan. No matter what amount goes into one of these plans, it’ll eventually add up from continued contributions as well as growth. If it’s hard to get motivated to start, try setting up some personal savings goals; this will make it easier to put money away if you have something to save for. Setting these goals up now will help you make those financial decisions earlier in life, but if you’re saving for something large such as retirement or a house, it’s very important to check the progress on a regular basis.

Another way to ensure that you’re saving in your best interest is to avoid large, new debt as best you can. It’s certainly impossible for everyone to make home purchases in one payment, so loan mortgages are a very common way to invest in a home. But for other large recreational purchases, wait until you can pay them in full instead of adding more debt. And don’t let credit card debt creep up while you are awaiting that next incentive check or bonus. The more you pay upfront, the less you will give away to interest payments. Keep most of that money in your own pocket as a form of future savings.

The thought of saving is a scary thing for many people; you need to afford the things in your life now, but it’s a reality that everyone should be saving earlier in life. Setting up time frame goals and a budget can give you an outlook on what you are spending and what you might be able to save. When setting a monthly budget, write down each expense to know exactly where you’re spending; it’ll give you a better sense of where there is to save. By saving a certain amount from each paycheck upfront and keeping other bills and debts low, anyone can guarantee that long-term goals will be met at some point. Everyone knows that the earlier we start saving, the farther it will go in the future. There’s no trick to it; give yourself a treat this week and start making saving a priority.

First published October, 2014