How Much Money You Should Save

So many of us are wondering about this important financial questions of how much money we should be saving. It’s an important question to have the answer to, but the answer is not so simple. When it comes to how much money you should save, each person’s circumstances, goals and worldviews are different, which makes it difficult to give a one size fits all answer. Many suggest saving 10 % of your monthly income, but for some that will prove to be too difficult and for others, they have the ability to stock away a little bit more. There are a few guidelines that can help us to put things into perspective and decide what a good savings rate would be for ourselves despite what Mr Jones down the road is saving.

savings

The first thought to ponder on, is what are you saving for? There are so many different reasons to be saving money. You may be interested in a short term saving, to be able to afford your annual vacation. The amount you should be saving for this can be worked out quite easily, based on the cost of the vacation and how long you have to go before you’re required to make the bookings.

Perhaps you’re thinking bigger than just your annual vacation and you want to have some sort of nest egg for the unexpected emergencies, or a “rainy day? fund. On top of all this you may be thinking about saving for your retirement too, which when it boils down to how much you should be saving, has a lot of other factors that come into play.

So once you know what you want to save for, it puts your monthly savings into perspective. Now, you don’t only have to be saving for one certain thing. You could have a short term savings, a savings cushion and be saving toward your retirement all at the same time, and that is probably the best thing that we should all be doing! Covering ourselves and providing our families with financial security the whole way.

The second thing that impacts on the amount that we should be saving each month, centers on the stage of life that we are in. If you are in your 20’s, saving for your golden years, then you have room to play with and you won’t need to be putting away huge amounts of cash each month. As the years go on, and the closer you get to retirement age, you can increase your monthly contributions. But if you started focusing on your retirement later on in life, and it’s around the corner from your, then if you can manage it, your monthly savings should be as high as you can manage, in order for you to be able to maintain the standard of living that you’re used to, when you’re no longer earning.

Be smart about your savings, and whatever you decide, make sure that you are putting something away each month without exception!

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10 Ways to Save Money

Securing your financial future starts with saving. Whether your goals are to meet your family’s needs, save for a better retirement, or buy a bigger house or faster car, saving is the most important way to ensure your meet your personal finance goals. And contrary to popular belief, it doesn’t have to be hard. According to Money & Career Cheat Sheet, as long as you are making some money, you should be saving some.

Check out these 10 simple ways to save money:

1. Record your expenses

The very first step to saving is knowing how much you spend. For a whole month, keep track of every transaction you make. This means trying to record everything you buy, from a newspaper to a cup of coffee. After gathering the information, make groups of different categories, such as your mortgage, services like gas and electricity, groceries, and so on.

2. Manage your debt

Before setting your budget, it’s important to determine how much debt you have and begin repaying it before you can start saving. Once you are finished paying back the loan, you could continue to put the same amount of money aside for your savings fund.

Save Money

3. Create a budget

Now that you’re clear on how much you spend monthly, build a budget to plan and help control your spending. In the budget ensure that you put some money away for emergencies, and remember to include a place for expenses that don’t occur monthly, such as car services, or home reparations.

4. Plan on saving money

Try to allocate at least 10% of your net income towards saving. If you find that with your current budget this is not possible, then you should probably cut back on more expenses if possible.

5. Set saving goals

To make it easier to start, set for yourself some achievable saving goals – both long term and short term. For the short terms goals, you could put money away to buy a new computer, bike, or car, and for your long term goals, maybe plan for your kid’s college education, retirement, or a remodeling of the house. Take time to think about what’s most important to you and what you want your money to achieve and make your goals real by writing them down.

6. Use price comparison tools

Price comparison tools are available online and will let you if there are lower prices for the item you intend to purchase available elsewhere. Sites such as Price Grabber and Shopzilla can help you save tons of dollars on many items.

7. Decide on the priorities

Different people have different priorities when it comes to saving, so you need to determine which goals are the most important to you and save accordingly.

8. Different investment and saving strategies

For your short term goals you probably want to use a regular savings account, but for your long term goals you could consider other options, such as mutual funds and stocks. Although it’s best to speak to a financial advisor before making any decisions.

9. Automatic transfers and direct debits

Automatically transferring money from your main account to your savings account makes it less likely for you to spend money, because you will never see it in your account and will make it easier to achieve your saving goals.

10. Watch the savings grow

Make a point of checking on your progress monthly. This will not only help you to stick to your saving plan but also identify loopholes in the plan and allow you to make adjustments accordingly.

About the author: Michael Peggs is the founder of Marccx Media, a digital marketing agency specializing in SEO and Content Marketing. Before Marcxx, Peggs worked at Google in business development, forming digital media and advertising partnerships. He is also a blogger and podcaster, hosting the iTunes Top 10 New & Noteworthy podcast You University – The Personal Branding Podcast.

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How To Budget Your Money

Budgeting your money is a great way to gain control over your finances. Making a budget at least once a year will give you a financial snapshot of where you stand. Your budget will help guide you toward smart decisions with your money that can secure your financial future.

Calculate Your Income

The first step to creating a budget is to calculate all of your income. Decide first whether you are going to do a monthly budget or a yearly budget. Working with a monthly budget tends to be more accurate over the long haul. Determining your income will help you determine if you are spending within your means.

budgeting

Calculate Your Expenses

The next step is to calculate your expenses. Include every bill that has to be paid on a monthly basis. If you decide to do a yearly budget, you can multiply your monthly expenses by 12. The goal is have your expenses come out to less than your income. Having your expenses exceed your income means you need to make some cuts to your budget.

 

Prioritize Your Spending

Another important aspect to a good budget is prioritizing your expenditures. Food, clothing and shelter should be among the expenses that are paid for no matter what. Your other bills, such as credit card debt, should be among the second tier of expenses that need to be paid. Money for entertainment and other discretionary spending should be last on the list.

Impact Of Credit Card Debt

Unpaid credit debt can have an impact on your budget. Make sure that you are including this debt as a payment in your budget. Credit card debt is one of the leading causes of bankruptcy in America today. Not accounting for this debt can cause serious financial problems in the future. Paying off your balance in full each month will allow you to eliminate the interest that accrues each month on any unpaid portion of your balance.

Budgeting your money should be a habit that you get into as soon as possible. You always want to know where your money is coming from and where it goes. Not knowing this information could lead to making bad financial decisions over and over again. Creating a solid budget will ensure total control over your finances.

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Money saving tips – Eliminate debt and enjoy a financially secured future

Facing debt problems? Do you save money every month? Well, you actually don’t do so and this is why you have fallen into the debt trap. If you are too tempted to buy the lovely dress you’ve seen but do not have money, then you’ll definitely be swiping your credit cards. The worst part is that you fail to pay off the outstanding balance on time and thus, have to pay high interest on it. Even if you may not earn much, you should develop the habit of saving as soon as you get your first job. A sensible person will definitely save some money from his income every month so that he can have a secured future. If you have outstanding debt, you may use your savings to repay it. Thus, by saving your valuable money, you will be able to enjoy a financially secured life.

Some money saving tips for a debt free life

If you have accumulated huge debt, then this has probably happened since you do not know how to manage your money efficiently. You will have to understand the importance of dollars and try to eradicate every unnecessary expense that you make. Read on to know some money saving tips so that you can reduce debt problems soon.

1) Keep only the money you will need in your wallet

Do you carry extra cash in your wallet? Well, if you love to shop for the latest items that has arrived in the market, then you should keep only the exact amount you’ll need. This way, you will not be able to spend even a single penny without need. Besides this, it is advised that you do not keep even one credit card in their wallet. This is because since you love to buy new items, you’ll be swiping your credit cards for sure and may incur debt when you do not have money.

Money saving tips

2) Good budget is needed to know your affordability

Are you spending your hard-earned bucks lavishly? If so, then drafting a good budget is essential for you. Budgeting is very important in order to deal with your finances efficiently. With the help of a budget, you’ll know how much money you can spend for daily expenses and how much you’ll be able to save for future. If you’re having some debts, then you should work towards paying them off fast. This way, you’ll be able to save money and come out of debt.

3) Differentiation is essential between needs and wants

Do you have the habit of buying almost every item you see around? If yes, then you probably do not know the difference between your needs and wants. Your necessities are the items that you use regularly. On the other hand, your wants are the luxuries that you wish to buy for a better life. Try to part with your wants for the time-being so that you can save more and have a secured future. If you’re having outstanding debts, then you should pay them off at first before you spend money in purchasing your luxurious items.

4) Keep some money in the savings fund every month

Are you saving a certain percentage of your salary every month? If yes, then you do not need to worry about your future. In case you aren’t doing so yet, then you must start keeping some money in the savings fund. This way, you’ll be able to accumulate a lot of money with time. If you have some debts, then you may use some of your savings to get rid of them. However, you should never use all your savings to repay debt.

Saving money is very important so that you can have a secured life. So, if your financial condition is tight now, you should still try your best to save every possible dollar you really can. Thus, follow these money savings tips to stay away from debt and have a better future.

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