Tips to save effectively through the recovery
Saving is not going to be easy now, but the most difficult step is starting.
Know where your money is going-- It's the only way to know how much you have available to save. Write a list of your needs (rent, food, transportation, bills) and put the rest on a separate list (entertainment, clothing, etc.) Deduct total expenses from your income after tax.
Find money you can use for savings--Rent a spare room, downsize or move to a cheaper area, take lunch to work, use only internet instead of cable, buy second hand clothing, share a phone plan, commute by bike, and in general try to adjust your lifestyle to allow some savings.
Define savings goals--Whether you want to save for a car or for emergencies, you need to set up a goal amount and a time frame.
Put your plan in motion--Decide where to save, start with a comfortable amount and increase progressively. Contact your bank or credit union, they have multiple savings options. Set up automatic deductions.
Track your progress--Use a calendar. Sit and review expenses from previous months, note how much you save, and adjust your goal as you move forward.
Treat yourself--Once in a while celebrate your progress with a positive note on the calendar or a small indulgence. It's important to stay motivated and stick to your plan.
Want to start building a personalized savings plan, contact Bernard at bsaavedra@neighborhoodtrust.org.
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