Saving Money 101

I’ve always been a firm believer of saving money. I was raised to always save and not spend money. Things happen and you will need money so always put it away! Right?

It’s not that easy but you need to do it.’you need to save like 20-49% of each paycheck, unless your a business owner. Save whenever you can.

Make sure to have different saving options. You need to have different accounts I literally have so many bank accounts with different banks just because they have a great interest rates or an opening account of making money. Think about all these options and jump on it! A bank had a deal going on when you opened the account you make $50 why wouldn’t I want to make $50 for free!?  I just let that account sit there with a small amount and make money off an interest rate; it’s not much but it is nice to have money when I might need it for something small and quick!

Here are some ways to save money:

1. Emergency savings: this is like an account you never ever touch like never and only add to! There are other accounts for you to use (see 3) this is used when your car needs help or you need a new ac unit. You should put in 15% once a month and grow it as often as you can. This account is also used if you were to get laid off you would use this money. You should have at least six paychecks, or more, set aside in this bank account! In case you need to live off it. It is important to make sure that this account is always growing and never being touched.
2. Vacation funds: you don’t need to put in as much and so often for this account. Basically know how much is your goal for the next vacation and put away whenever possible. It is nice to go on a vacation so make sure that you save for it. If you go on vacation once a year set goals and mile makers. Make sure to have a ‘vacation’ bank account so that it is separate from the other accounts.
3. Back up funds: this is like the most often one that I use. This is money used for just about anything. Put money in here from every paycheck. If you can have direct deposit in here do it. This is used for misc goods you want to personally purchase or need for car repairs, etc. This isn’t usually meant for big purchases but rather is used for little things that you need: clothing, shoes, blankets, etc etc.
4. Long term // retire: This is to NEVER be touched. In fact most times you never even know how much is in this account! Your paycheck should be set up for automatic payment, like no joke. SET IT UP. So you never see it and have to worry about transferring money, etc. This is HUGE. You need to prepare for the future so make sure you know how much you need to save. See a financial advisor, most banks offer them for FREE. You want to make sure that you will have the amounts you need when you are older.

Be smart about your money. It isn’t just about one account or saving money here and there you NEED to be up to date and balancing it.