Whether you’re saving to purchase your first home, buy the vehicle you’ve always wanted or open a new business, it’s important to understand how to get the most from your money. To achieve your financial goals, here are a few tips from the Warren-Boynton team.
First, create a budget. This way you can determine your fixed expenses, such as rent or your mortgage payments, gas, groceries and utilities. Add these together and subtract from your monthly income. The remaining amount is for additional spending; gym membership fees, eating out, travel, etc. And of course, last but by no means least, money to deposit into your savings account.
Next, you’ll want to keep track of your spending. There are plenty of finance and budgeting tools available online, which allow you to keep track of where your money is going. The Warren-Boynton State Bank app is a great example. This will make it easier for you to make financial decisions. You will also find opportunities to shift your spending priorities and forgo ‘luxuries’ so that you can add a little extra to your savings.
Keep a rainy day fund. You never know when the furnace may go out, your car breaks down or you need to replace the oven. It’s important to have an emergency fund for when things don’t quite go as planned and you’d rather not dip into your savings. This means you’ll also avoid taking on unwanted debt.
No matter how good a night out with friends for dinner and drinks sounds being debt free, owning your own home or taking the vacation you’ve always dreamed of will create lasting enjoyment and memories. And, when it comes to lunch, why not take leftovers into work, rather than spending the $10 to $15 to purchase lunch?
Do you have a spare room that you could rent out to reduce the amount you are paying on your own to your landlord or the bank in mortgage payments? It doesn’t need to be forever, but will give you a chance to reduce your outgoing costs and increase your monthly deposits into your savings account.
Be realistic with your budget and spending. You still need to eat and enjoy life. Start by setting small goals. If you’ve never been good at saving and have a tendency to spend beyond your means, then aim to save small amounts. Once you’ve saved a few hundred dollars, you’ll be surprised how quickly this becomes a few thousand dollars and then you’re on your way.
At the end of the day, saving isn’t about depriving yourself, but instead providing for your future self.
For information about opening a savings account, stop in at one of our branches in New Berlin, Springfield, Palmyra, and Modesto or visit us at wbsb.net/Personal Banking/Savings-Accounts