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?
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 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.
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?
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.