One of the most fundamental financial lessons to learn in life is the importance of saving money. It’s also one of the hardest to put into practice. When you find yourself pulled in many different financial directions, with bills, loans and other expenses, it can be difficult to discipline yourself to put money away.
People who make a habit of saving regularly, even saving small amounts, are well on their way to success. It’s important to open an account so it will be simple and easy for you to save regularly. Then, use your savings to plan for life events and to be ready for unplanned or emergency needs.
How to start saving
- Open and keep an account at a bank or credit union that meets your needs
- Track your savings and investments, and monitor what you own
- Plan for short-term and long-term goals
- Build up emergency savings for unexpected events
- Consult with a qualified professional on investments and other key financial matters
- Save for retirement, children’s education and other major items
Tips for saving money
- An easy way to save is to pay yourself first. That means each pay period, before you are tempted to spend money, commit to putting some in a savings account. See if you can arrange with your bank to automatically transfer a certain amount from your paycheck or your checking account to savings every month.
- If you are making investments, it’s good to consult with a qualified professional about your plans. Before you purchase investments, be sure to build an emergency savings fund to cover your needs for at least three months. Keep the savings in an insured bank or credit union account that you can access if you need it.
- Many professionals call themselves “financial planners.” Before you hire one, ask for a description of the services offered. A good place to check the credentials of an investment advisor is your State’s consumer protection office, the State’s Attorney General’s office, or the issuing agency for any professional licenses or certifications.
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