For many most of their financial problems stem from what they do with their money rather than how they acquire it. In fact, statistics show that 1/3 Americans have saved $0 for retirement *1.
Why start saving?
While saving isn’t always the “sexiest” thing to do with your money, it is important to save now to ‘save’ yourself from problems down the road. All experts agree that regularly setting money aside promotes a stable future while providing a safety net in case of emergencies.
How much should I be saving?
Most financial advisers recommend at least 20% of your income should go towards saving. It is important to pay yourself first, meaning save before you spend. People who wait to save what they don’t spend ultimately don’t save any money. You should start by creating a monthly budget and track your spending and saving so you can plan better!
What should I do with my savings?
Hint: don’t store it under your mattress. The younger you are, the riskier investments you want to make. These investments are going to augment over time. If you’re looing for safety, the safest place to save money is in a savings account at any bank. Even though these accounts pay very low interest rates, it is important to keep some money in a savings account as it the safest way to save money and is relatively liquid.
What about investing my savings?
Although it is not technically considered saving, investing money periodically can help you save money while earning a passive income and prepare for the future. Investing is riskier than saving, but when investing you have the chance to receive much greater returns than a savings account. It is important to do your homework before investing.
Want to know good ways to invest your money? Contact us here!
*1 A Time Magazine
Here are 5 nifty life hacks that will save and make you money!
5. Put a brick in your toilet.
Every time you flush, you’ll save a brick’s worth of water!
4. Buying a car?
If you’re buying a car, buy it at the end of the month. A sales person who is trying to make bonus will sell you a car at a discount!
3. Have some free time?
Instead of playing just any game on your phone, play Fish for Money! This app will pay you $15.00 to play a fun fishing game!
2. Buying an Apple product?
Add the product to your shopping cart and don’t buy it. In about 7-10 days they’ll offer you a 15%-20% discount!
1. Penny Save Challenge
Day 1: save $0.01, Day 2: save $0.02, Day 100: save $1.00, Day 365: save $3.65…
Save $0.01 more than you did the day before for a year. By the end of the year you’ll have $667.95 and it will seem like nothing each day! Even if you save $0.25 a day, you could make a ton of money in the long run.
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What does $0.10 mean to you? If you’re walking down a street and see a dime, would you pick it up? Probably not, I mean it’s only 10 cents and its no lucky penny.
Imagine if you saved no more than $1.00 every day. It doesn’t have to be a lot, we’ll say something like a dime or a quarter. What would happen to this money 10 to 30 years from now?
The best tactic here is to put the money in an investment account. Albert Einstein once said that “the most powerful force in the world is compounding interest.” Let’s take a look at how far your quarter a day could go.
In 30 years, your daily quarter could be worth over $15,000. Next time you want to buy a gumball, take a second to think about how much that quarter is really worth!