Financial Preparedness Is Necessary 2022 and Beyond
American’s have found that saving money is key to financial security.
A recent study by The Washington Post showed that 40% of Americans took part in setting New Year’s Resolutions. Similarly, according to Fidelity, 43% of those who participate in choosing a New Year’s Resolution decided to increase their savings. The decision to increase savings was this year’s top New Year’s Resolution, and more than likely because the last couple of years has taught everyone that consistently contributing to a savings account is critical to one’s financial security. Are you part of the 43% of Americans looking to increase your savings? If so, we applaud you and encourage you, as well as the remaining 57% of Americans, to check out these three savings tips.
Budget: Create a budget that allows you to see a better (and bigger) picture of your current spending habits. After completing your budget, find the expenses that you can cut out. Reallocating funds from one category to your savings can help increase the balance quicker. Setting a savings goal within your budget can help give you the motivation to save even more.
Increase Income: If growing your savings is your number one priority, increasing your income can help. Getting a second job or turning your hobby into income can increase your savings. Other ideas include renting out a room in your house or a seasonal home/camp, pet sitting, house sitting, tutoring, Uber/Lyft/Door Dash, etc., or various handyman work for friends are great options to help increase your savings. Finally, you can also work on paying down debt. By eliminating debt, you can reallocate those payments to grow your savings.
Automatic savings: One way to ensure savings growth is to set up automatic transfers into your savings account. Setting up reoccurring transfers will consistently add to your savings without having to think about it, and after a few weeks, you may not even miss that money in your monthly budget.
Savings is a crucial part of finance. A healthy savings account may eliminate financial stress when unexpected situations arise. If you need help budgeting or would like to discuss some additional ideas to increase your savings, contact me by emailing me at Creynolds@newdimensionsfcu.com or call (207) 660-6267 to set a one-on-one budgeting session.