When evaluating your debt structure, Gustafsson also notes that it’s always a good idea to take a look at your credit cards and see how much you’re paying in interest each month. This far exceeds the national average APY of 0.07% on savings accounts. This will not be life-changing money, but it’s just another small way to tweak your budget and increase the amount of money you are making in your savings account each month.Īdding to this point, CNBC advises to only Look to online high-yield savings accounts rather than those traditional brick-and-mortar banks, as the former offer yields that are often ten times higher than the national average.įor example, Marcus by Goldman Sachs High Yield Online Savings offers a 1.70% annual percentage yield (APY) with no monthly fees and no minimum deposits. Because as the Federal Reserve raises its rates, the interest rate on your savings account will generally go up. These things need to be redefined in times of economic uncertainty for your financial picture to be better hedged.” Reevaluate Your Credit Cards and Bankingīravo points out that you may want to consider looking at where you are banking. A lot of people think a daily coffee isn't excessive, but it's trying to redefine what is nonessential. “Really focus on those, and then smooth out those others that are excessive - which is hard. “Ask yourself, out of your expenses, what are the necessities?” said Ingram. And to better contribute to this fund, take a closer look at your month-to-month spending and get a better idea of what you are quantifying as necessities. Ideally, this fund will have three to six months’ worth of liveable income. Ingram also points out that all the time, but especially in times of economic uncertainty, it’s a good idea to have an emergency fund. “I think the key is just to have something that you can look at and actually track that way you are spending your money to really figure out where it is going,” said Gustafsson.īecause, as Ingram explains, once you realize where your money is going and how you are spending it each month, you’ll need to understand the next step: What your budget should look like and how to redefine your habits. Ultimately, whether you choose an app or a traditional Excel sheet or a notebook, John Gustafsson, financial advisor at Northwestern Mutual, states that a good budget is simply anything that you can stick to. But if you do the work to take a look to understand, ‘Where's all my money going?’ You can typically identify at least a couple of easy wins.”Īnd to get a better picture of your budget and how you’re spending and saving, Kasey Ingram recommends the apps Mint and EveryDollar. “It's not realistic that you're just going to cut off your lifestyle to save a little bit more money. “That's where you have some flexibility within reason,” said Bravo. Then all the rest is discretionary.”īravo notes that by keeping your fixed expenses as small as possible, you’ll have more wiggle room for your discretionary income (things like eating out, gym memberships, etc.) Understand how much of your budget is going toward fixed expenses like rent, mortgage or car payments and how much you’re currently saving. “The first step is to total up the money coming in and the money going out at the end of the month and figure out what’s going on. Bravo, CFP, CSRIC, investment advisor at Entrust Financial LLC. “It always comes back to what’s in your budget,” said Jennifer M. So, where do you even start if you want to save, or accrue money, for your long-term goals? Review Your Budget It’s safe to say that things are a bit tough at the moment. While these concepts may sound easy enough if you have a comfortable cash flow, what if you have more constraints on the money you make each month?Īnd what about today’s economic climate where inflation has us spending more and salaries are often not up to par with the price of living? When you read the above quotes, a few words and ideas may stand out to you: Save, budget, don’t spend what you don’t have and spend within reason with the money you do have. “A budget is telling your money where to go instead of wondering where it went.” – John C. “Never spend your money before you have it.” – Thomas Jefferson “Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett Where did the money go? Was it the high price of groceries or the cost of gas for that one trip you took? To better save and plan for the future, financial experts recommend dissecting your budget, reevaluating your necessities, taking advantage of the job market, and investing if possible. Another month has gone by and you're unable to contribute to your savings account.
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