It’s important to create good savings habits so you can be prepared when unexpected expenses come your way. There are a few savings strategies you can use to get you started:
- Be realistic. This may not seem like a savings strategy, but you want to be realistic with the amount that you put into savings each month. If you try to commit to a number that’s too large, it’s easy to get discouraged and give up altogether. At that point, you’re worse off than if you stuck to a smaller amount. Be patient and your savings will slowly grow.
- Look for opportunities to save. Some people may not know how to start a savings account, but sometimes you have to look for opportunities that will create some extra income. A garage sale, for example, is a great way to make a small chunk of money and organize your home in the process. Or maybe you can downgrade a cable or gym membership. If you get a tax return, consider putting some of that away. If it doesn’t seem like there’s any room in your budget for savings, it may just be a matter of making room.
- Create a separate account. Keep your savings account separate and don’t allow yourself a debit card for that account. Doing this will greatly minimize your access, allowing you to save more.
Emergency situations can be stressful enough, but you can eliminate extra stress by building your savings so you can take care of what you need to without dipping into your monthly budget. And the peace of mind you will get from being prepared is priceless.
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