Savings Goals: Are You Doing It Right?
Did you know nearly 70 percent of Americans have less than $1,000 in their savings account? While some respondents cited a paycheck-to-paycheck lifestyle as their barrier to saving more, others simply haven’t made saving a priority. If that sounds like you, now is the time to get serious about saving—before you find yourself in a position where you need extra money immediately. Here are some tips to get you started:
Ensure You’re Saving Enough
- Splurge Less, Save More
While everyone is entitled to splurge a little bit on themselves now and again on things like clothes and new gadgets, if you’re spending most of your money on splurges, you’re not saving enough. Saving money shouldn’t leave you in the poorhouse, but you should notice a discernable difference in your expendable income.
- Slowly Increase How Much You Save Over Time
No one’s expecting you to save 30 percent of your paycheck right away; you need to ease yourself and your lifestyle into a new financial frame of mind. Start small, like saving 5 percent of your income for six months, and then gradually increase how much you’re saving every six months to a year. The small change won’t shock you, but the results in your savings balance will!
- Make Saving Simple and Convenient
The easier something is, the more likely you are to do it—right? Look for an account that makes it simple to save from the comfort of your own home, like BrioDirect’s online, high-yield savings account. With on-the-go conveniences like mobile banking and mobile check deposit, this account makes managing your money easier than ever before.
Have a Savings Goal
- An Emergency Fund
Consider it a break-in-case-of-unexpected-financial-emergency plan. If you were to lose your job tomorrow, how long could you continue to afford your basic living needs, like rent/mortgage, car payments and insurance, food, utilities, child care, and outstanding debt? Your emergency fund should be enough to fund at least three months of bills.
- A Major Purchase
Whether you’re planning on purchasing a home or a new car, the more money you put down, the lower and/or shorter your payments will be in the end. Decide what percentage you want to put down and your timeline to get started. For example, if you want to put 20 percent down on a $200,000 home in three years, you would need to save around $1,100 a month.
- General Savings
Even if you’re not in the market for a major purchase and already have a solid emergency fund set up, you should still make an effort to build your savings. You never know when you’re going to need a rainy-day fund—or want to be financially prepared to buy that big-ticket item on a sunny day!
Now you know how to reach—and even exceed—your savings goals: Learn more now and see why BrioDirect is the online bank you can trust with your financial future.