Once you determine your spending patterns, and the costs that you can afford to cut, you can focus on your savings! It is important to save each month, even if it's only a small amount at a time. Savings will help you lessen your dependency on credit cards and other types of borrowing. Experts recommend saving between three to six months of living expenses for an emergency fund.
Need a savings plan? Follow these tips!
If you don't already have one, open a savings and a checking account. If you pay monthly or regular bills, then a checking account is a must. Having a checking account will enable you to track your expenses, and avoid using high interest rate credit cards.
If you are in college, or plan to attend college, find a part-time or work study job that fits into your school schedule. Then, SAVE part of your earnings. Any money that you can save will help reduce the amount of student loans that you need to borrow. Remember, every bit counts, and anything that you can contribute toward the cost of your education without borrowing saves you significant amounts of money in the long run. At a minimum, be sure to save enough cash for books and supplies.
Consider setting up direct deposit of your pay to a special savings account. This can be a "savings only" account, and see how quickly your money will grow!
Keep Living Young & Free,