What accounts everyone should have to save more money?

Savings Accounts

Do you wish you could save more money now?

Have you ever wondered if you have enough money to protect you against financial setbacks or even more, to be able to retire one day?

The only way to save more is to have accounts to hold your savings.

How many accounts do you have to save money?

I am not just counting your bank savings accounts which is probably linked to your checking account.

How many true savings accounts do you have in place now?

One

Two

Three or more

The more accounts you have the more likely you are to save more.

Take a minute to list your savings and do not count your checking account as one. The reason I would not count your checking because if you are saving money in your checking account its likely you will spend it. So if you are using your checking as a savings account stop and open a separate account to save money.

So if you cannot count your checking account and you already have a savings account open, that only one savings accounts.

So what other account can I save money in.

There are other account you can use to save money.

Here are 5 other savings accounts you want to have if you want to save more money:

You may not need all 5 depending on your financial goals and objectives but here is a list of a few you should consider:

Retirement Savings

Retirement savings account should be one account you have in place to plan. It’s one of the easiest to establish since most employers offer some sort of tax-deferred retirement savings account. So it makes it an obvious place to start your savings.

Better yet, most employers usually will help you establish the account when you become an employer of the company it’s not some hidden secret. It’s usually one of the perks of employment, they may even offer you free money to if you contribute up to a certain percentage something you must take advantage of. Your employer will usually provide you with all of the details so you do not have to determine which provider to use.

If you do not have a retirement account established, check with you employer to understand what retirement savings options are available. If your employer does not offer you retirement savings look into establishing a Roth IRA.

Emergency Fund Savings

Unexpected expenses will occur one day. We just don’t know when they will occur. Your car will need a repair or something in your home may need to be repaired. When this happens you probably ask yourself “Where will I find the money to pay for this additional expense?” These sometimes minor expenses can become a financial burden if you are not properly prepared for them.

Having an emergency fund in place can minimize the stress those unexpected expenses can have on you. An emergency fund becomes your safety net to cover those financial shortfalls when the unexpected expense occurs.

Medical Savings

You can put medical cost in the same category as unexpected repairs or emergency expenses. You never know when they will occur but you have to be prepared for them. If not, they may put you into an financial burden.

We all have some form of medical insurance but most medical insurance does not cover 100% of your medical cost. Many medical insurances require an annual deductible which must be meet before insurance covers the cost. So with this said you will probably have some unexpected medical cost throughout the year. You should establish some type of medical saving which would hold enough money to cover your deductible, prescription costs, and co-pays. You can set up a Health Savings Account through your insurance, bank, or even your work.

 College Education Savings

If you have children, you have probably read how education cost continue to increase every year. If you don’t begin to save while they are still young you may have to turn to other forms of financing the cost of tuition. Funding your child’s future college tuition is another easy savings that you should establish. The earlier you begin the less of an impact it will have on your cash flow when your child enters college

 Future Purchases Savings

There are not many things we can guarantee will happen in life. But it’s pretty close to a guaranteed that you will make a large purchase in the future. You are likely to purchase a new car, new home, or other large item in the future. Many times you may make your next purchase sooner than later.

If that is the case, who does not want to already have money saved for this upcoming purchase.

Those are 5 savings accounts you should put in place to help you save more as well as help you be prepared for unexpected expenses and future planned purchases.

 What other savings account can you think to utilize to save more money?

ACTION STEP

If you only have one of these savings account established, put an additional savings account in place so you can save more.  Try to do this within the next 30 days.

Remember take one step at a time to simplify your finances.

8 Excuses That Are Preventing You From Saving

8 excuses

How many times have you said

I want to or I should but…

We all have good intentions to do things but we seem to come up with an excuse or a reason not to do something.  This creates a road block which prevents us from accomplishing what we set out to achieve.  I say it often I would like to or I should but never do it.

The only way you will  reach the achievements you set for yourself you will have to move past these road blocks.

And instead of saying I want or should begin to say I will.

An area of our personal financial lives I heard this term is when it comes to saving money.  I hear many excuses why we are not able to save money each month.

What is your excuse for not saving money?

I should save more but I am young and I have time to catch up. 

The sooner you begin to save money the better off you will be.  You will actually save less each month if you start sooner due to the compounding effect of your money.  Save now you will not have to worry about trying to catch up as you get ready for retirement.

I save enough

You believe you save enough.  What percentage of your gross income are you saving annually?  Are you currently maximizing your retirement savings such as 401k or IRA?  Have you contributed the max to 529 plan or Health Care Saving plan?  If you are maximizing all of these accounts you get a huge high five and I want to interview you to learn how you are maximizing your savings.  If you are saving enough, your you able to retire today and not worry about going back to work.  I believe you can never save enough.  You should save as money money as you can.

I don’t earn enough income to save

Everyone is at different income levels but each of us has an opportunity to save.  Even if you are only saving a small amount each month it’s better than not saving at all.  Start with a small percentage of your income or maybe just start saving a few dollars each week.  By starting you are taking the necessary steps to save money.

I try but can’t save

What have you tried?  Try saving a small amount like $50 per month or pay check.  Saving is about attitude.  Have a can do attitude and I guarantee you will be able to save.  Take the first step by finding a system that works for you and implement it.

My expenses are high

If your expenses are too much to save, it is time for a financial assessment to see where you can possible cut some expenses.  You say you have a lot but there maybe some fat in your expenses that you can trim.  If it’s a little as $50.00 per month that is better than nothing.  What you are able to trim from your expenses?  There is always an expense you can eliminate so you can save.  What expense can you eliminate for a week so you can save some money?

I have to much debt

If too much debt is your excuse, it time to reevaluate your debt plan.  Are you not saving because you are aggressively paying down your debt?  If this is the case possible consider reducing your aggressive plan slightly.  It may not sound like the most logical thing to do.  Consider this, if you are not saving because to you putting the funds towards paying off debt that means you are not saving for an emergency fund.  If you don’t have an emergency fund,  you will probably have to use debt to cover any unexpected expenses which will put you back into debt.  I am sure that’s what you want to do.  If you have a significant amount of debt,  consider putting some money sided in case of emergency.  All of your hard work to pay down you debt can go down the drain with one unexpected expenses.  Looking for ways to eliminate debt here is a Simple 6 Step Process to Eliminate Your Debt.

I don’t know where to start saving

I hear this one often.  You don’t have to have  the perfect start but you must start some where.  There are many places you can start to save money.  The quickest and easiest way to save money is to have funds take directly out of your pay check.  This simplifies the process.  You set it up and it’s done for you each pay period.  What’s easier than that.  That’s just one place to start.  There are others but start there first if you are not sure where to begin.

I am not sure how much to save

If you are not sure how much you should be saving.  Just start with a small monthly amount each month and then raise the amount every few months if you see you have some extra money.  Also check out the automated system created by Digit.  It monitors your account to determine the amount of money you can save and then it automatically saves it for you in a separate account.  That’s a place to start if you are having difficulty determining how much you need to save.  If you want to learn more about Digit watch this video.

 

I believe those are the majority of the excuses I have heard.  Now its time to stop making excuses and actually start saving.

What’s your excuse?

What are you going to do to start saving today?

If you would like to save more sign up for my newsletter I will share tips to help you simplify your finances which will help you finds ways to save more money.

 

 

Are You Looking for Financial Peace of Mind? This One Thing Can Help Provide it

financial peace of mind

A financial peace of mind is what many of us desire or strive for in our lives.  But each of us have different definition of what financial peace of  mind means.  Even within your own household you and your spouse may differ on what financial peace of mind means to each of you.

How do you define your financial peace of mind or what would financial peace of mind look like to you?

For some they define their financial peace of mind as:

Not having any debt

Having the ability to pay off credit card balance each month

Meeting long-term financial goals such as purchasing new home or funding children education

Leaving an inheritance to family or funding a charitable gift

Adequate funds or proper insurance to cover an emergency

Ability to purchase things without having to worry about the financial impact

Knowing I have enough assets to retire and not worry about running out of money

I define my  financial peace of mind in the following way:

Knowing I have money to cover those unexpected emergencies or insurance to cover them.  For example if something in my home needs to be repaired or replaced, I am  not worrying where will I find the money to make the repairs because I already have the money set aside to cover it.  Also knowing this emergency will not cause a financial burden to my finances.

Knowing if I lose my job, I have money to cover my expenses for several months until I can replace my income.

Knowing my retirement is properly funded and I am able to retire when I am ready and not having to work longer than I would like because I did  not save enough.

I have paid off my mortgage and living debt free.

Having enough cash flow to cover my monthly expenses from sources outside of my job.

That’s my definition of my financial peace of mind.

That sounds wonderful . But you may be telling yourself what do I need to achieve my financial peace of mind.

We all can achieve our financial peace of mind. The one thing that can help you achieve that financial peace is to have…..

a savings plan.

Having money saved is the one thing that can provide you with a financial peace of mind. Savings is like a security blanket it’s there when you need it to provide the comfort you need.

Think about it

If you have money saved in an emergency fund for those unexpected expenses that can occur, you will feel a financial peace of mind knowing the money is there.  You do not have to worry about where you will find the money to cover the expense or worse maybe having to use your credit card to pay for the expense.  This will only add more debt which you do need.  Having money saved provides you that added security when you need it.

Having retirement savings enables you to feel at ease knowing you have enough money to enjoy your retirement and not worry if you will run out of money or worse have to go back into the workforce.  It also enable you to feel at ease in case you have to retire earlier than you had planned.  If you start saving early and maximize your saving you can decide when its best for you to retire instead of letting others make that decision for you.

Those are just two examples how having savings in place can help you have a financial peace of mind. There are several ways having a savings plan in place can help provide you with a financial peace of mind.

So what’s stopping you from saving more so you can have a financial peace of mind? 

Take one step at a time to simplify your finances.

 

 

How to Jump Start Your Savings? So you can save more now

Simple Financial Lifestyle How to Jump Start Savings

 

As we kick off a new year many of us have set finances goals or New Year’s resolutions to get our finances in order. One of the financial goals I hear most often at the beginning of each year (myself included) is I want to save more money this year. You may establish a annual goal to save a specific amount or a current percentage.

These plans usually work for a few months because you decide to reduce your spending or begin to eliminate some unnecessary expenses. By doing this you have extra money at the end of the month you are able save.

But after a few months you have found other things to spend that extra money on instead of saving it. Now the extra money you planned to save is not there at the end of each month.

One reason you maybe spending the money and not saved it is because the money may have remained in your checking account to long. This resulted in you spending it instead of saving it.

If you want to save more money each month so you can achieve the goals you set for yourself, you may have to change how you are handling your savings.

Yes I know change is not always easy but if you want to accomplish something you have never achieved before you must change something in your life.

You probably have heard of the definition of insanity.

Doing the same thing over and over and expecting a different result.

You cannot continue to do the same thing or say the same thing and expect this year to be any different unless you change something.

If you truly want to save more money this year, change how you handle your savings.
Look at how you are currently managing your savings each month.

Do you just wait to see what is left at the end of each month and put it into your savings account?

Do you rely on yourself to make those monthly transfers?

Do you have it as a line item in your budget?

One simple change you can make to actually help you save more is not to rely on yourself to transfer the money each month or pay period to a separate account.  We all know life happens and we forget or just never get around to making that monthly transfer.

Instead of relying on yourself to transfer the money to your preferred saving account, there is one thing you can do which will jump start your savings this year.  It will not only jump start your savings it will also enable you to save more consistently and you can stop worrying if you will have money at the end of the month to save.

That one thing you must do to jump start your savings plan is to

AUTOMATE your saving every month.

Automating makes the process of saving easier because:

1.    Do not have to remember to move the funds
2.    Saves you time
3.    You cannot spend it because you save first
4.    It’s done consistently

To get your savings jump started in the new year take some time to determine how much you want to save each month.  Once you determine the amount set up a monthly transfer from your checking account to separate account.  This can be a savings account or brokerage account which is best for your situation.

The money should be transferred to the separate account a day or two after your pay check is deposited into your account.  Don’t wait longer because the money will possibly be spent if not moved within a few days.

This one simple change will make a difference in your savings each month.  You will discover that your savings grows faster and you are not worrying if you will be able to save each month because it will automatically be done for you.

ACTION STEP:

Decide how much you would like to save each month now don’t wait; do it now and set up an automated  transfer of that amount to a separate account.  This will not take long to accomplish.  You can probably accomplish this by simply login into your online banking.  You will reach your savings goal quicker by doing it this way.
What have you done to jump start your savings this year?

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