In general, people need to save money for two reasons: they need to save up to meet long-term goals like retirement or a child’s education, and they need to maintain an emergency fund for unexpected expenses. For long-term savings, it can be very beneficial to put money each month into an investment vehicle such as a Roth IRA or a 529 college savings plan. Short-term savings, however, need to be easier to access and lower in risk. The following are some practical tips on saving money from Blue Trust Loans.
Set Up A Savings Account
For short-term savings, a simple bank account can be the best place to set aside money. It’s important to keep savings separate from other funds, but the money should be easy to access in case of emergency. It may be worth shopping around to see which bank is offering the highest interest rates.
Make A Budget
Making a budget can help people see how much money they need for predictable expenses and how much they can afford to put aside each month. It’s important to budget a specific amount for savings rather than planning to save whatever is left over at the end of the month. In fact, one of the best pieces of advice about saving money is “Pay yourself first.”
Eliminate Unnecessary Expenses
One of the best ways to save money is to lower monthly expenses. One way to do this is to eliminate expenses for services or subscriptions that aren’t getting much use. Many people save money by canceling their landline, for example, or by getting rid of cable.
Negotiate Lower Rates
Another way to save money is to ask for a better deal. Phone companies, internet providers, and even utility services may be willing to offer a discount on their services if they think a customer may go to a competitor.
Save On Daily Expenses
Using coupons is a great way to save money on everyday purchases. Many stores now offer digital coupons that are loaded onto a loyalty card or mobile phone. Buying in bulk from a shopping club is another way to get discounts on essential items. Finally, taking a brown-bag lunch to work instead of eating in a restaurant every day can save most people hundreds of dollars every year.