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Top 3 Ways to Manage Your Savings
When it comes to saving money, there are tips you can use at any age. Whether you’re saving for college, a new car, a wedding, an international trip, or even retirement, efficiently increasing your savings will get you there. It won’t happen overnight; however, with some planning, you can reach your goal. But first, you must know what you’re working with.
1. Create a budget
First, you need to outline what you are spending your money on each month. Use a program such as Microsoft Excel to list your rent or mortgage, bills, and loan payments. You can also include average expenses for items such as clothing, groceries and going out to eat, gas and car maintenance, and other “needs” and “wants” that you regularly purchase. Once you’ve set up this spreadsheet, you can use it daily to track your spending on a more granular level.
You should also list any income streams. This can include your main job, along with any side hustles you have—a part-time job, selling vintage clothing online, consulting work, a self-started business you’re trying to get off the ground, and so on.
Now that you know how much money comes in compared to how much goes out, you can break the numbers down into a budget. The 50/30/20 budget plan is a common place to start. Fifty percent of your income goes toward the items you need to buy or pay for: mortgage, bills, groceries, etc. Thirty percent goes toward wants, such as travel, going to restaurants, and renting movies. Finally, twenty percent goes straight into the best savings account you can find. This can also go towards an emergency fund and loan repayments.
2. Let your money work for you
Once you’ve decided on a budget that works best for you, it’s time to let your savings do some hard work. Banks have a variety of options to help you save more money and gather more interest. For example, here are a few offered by Consumers National Bank:
- Dimes to Dollars Savings: When you use your Consumers Checking Account debit card, purchases are rounded up to the nearest dollar, and the difference is transferred to a Dimes to Dollars Savings account. This account earns up to 3.00% APY* to help you save without even thinking about it.
- Specialty Savings: This type of account offers competitive interest to help you grow your savings toward somethings specific, such as a vacation, wedding, or new toy.
- Certificates of Deposit (CDs): This risk-free investment offers guaranteed returns at a fixed rate. It’s like a “set it and forget it” savings account that you leave alone for three months to six years as interest compounds.
Patience is key when you let your money work for you. Your savings won’t double overnight. But, in the long run, you’ll be glad you opted to get a little more out of what you put aside for future purchases.
3. Don’t give up
Like we said before, growing your savings won’t happen immediately. To use a financial term, you must invest in yourself.
Saving money, investing, and paying off debt, will help you better manage your savings and gain financial freedom in the present and the future. If you feel like giving up because your budget is too strict, revisit your plan. See if you can move a few things around or eliminate some unnecessary spending.
On the other hand, you might feel like it’s time to make a large purchase, such as buying a house. To navigate this major investment, talk to a financial advisor. They can look at how you’ve been managing your savings and help you figure out how to get the house of your dreams.
Everyone wants different things in life, but we all have to save up for those goals. Contact us today to open a personal savings account so you can get one step closer.
*Annual Percentage Yield. No minimum deposit to open. Maximum initial deposit is $50.00. Earn up to 3.00% Annual Percentage Yield (APY) on the first $1,000 in your account. If your balance exceeds $1,000, you will earn our current personal savings rate on balances in excess of $1,000. Only one Dimes To Dollars Savings account may be opened per individual Tax Identification Number (TIN).