A lot of people like the idea of getting rich quick. Yet, the chance of winning the lottery or inventing the next iPod is pretty slim. Those who save a little bit of money every day over a long time are much more likely to have financial security. At the Financial Empowerment Centers, we can:
- Discuss what banking options might be right for your situation
- Figure out how you can save more money by cutting expenses
- Make a savings plan that is practical and based on a realistic budget
- Set goals for an emergency fund, a down payment fund for a car or house, and/or retirement savings
- Talk to you about how you can make your money grow
- Before you can set a goal to change your spending, you need to know where your money is going now. You can keep your receipts, log it in a notebook, or use an app or website. The important thing is to identify your current habits so you know what you need to change in order to be able to start saving.
- You make choices between saving and spending every day. When you remember that every pair of shoes you buy detracts from your ability to purchase a new home, your choice becomes easier. You prioritize and are willing to sacrifice what isn’t important for what is.
- Saving is a process. Start with a small goal you know you can achieve and work your way up to a larger goal. You’ll gain confidence in the process.
- If you can make an automatic deposit from your paycheck into your savings account, then do it. If the money is never in your pocket, then you won’t have a chance to spend it, and it will grow faster.
- Interest rates may not be what they used to be, but keeping your money in a bank or investing it in a safe vehicle will ensure you’re not spending it. Check out local investing and savings clubs.
- Everyone has spending leaks in their budget. If you spend $2 on a coffee every day, in 5 years you will have spent $3,650! Now if someone handed you a check for that amount, think of what you could buy. Again, if you really like coffee, it’s fine to make room for it in your monthly budget. Just remember that buying it is at the expense of something else you may want more.