For some, saving money is a constant battle, especially when your savings account is competing with daily necessities like buying groceries or raising a family. However, with a few insightful tips and the right personal budgeting tools, anyone can save in an easy and proactive way. As creators of the best home finance software, the team from CalendarBudget wanted to help you begin your savings journey by providing the tips below!
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Start a Rainy-Day Fund
Also known as an emergency fund, a rainy-day fund can provide you with the cash you need when in a financial pinch and unforeseen events arise. Treat what you place into your rainy-day fund each month as an added expense that’s non-negotiable, like a recurring bill payment. Whether you wind up using your emergency fund for retirement down the road, childcare costs, or other expenses, being strict about how much you put away will ensure you’re well-protected in the future.
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Track Your Expenses
One of the ways people can truly get a handle on their money is by tracking every single penny. Being aware of where your money goes each month helps you see what you’re spending, where, and any areas that can be eliminated or cut back. The more you lower your monthly expenses, the more money you’ll have at the end of the year to go on that family vacation or purchase that new car you’ve had your eye on.
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Practice Self-Control
Piggybacking off of point number one, viewing what you put into your savings account as non-negotiable also means you’ll need to practice some self-control when it comes to money. This means eliminating extravagances and avoiding using your credit card and paying interest for daily necessities.
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Create a Working Monthly Budget
We all know that the amount of money we spend can vary on a monthly basis: sometimes unforeseen expenses crop up, or rent is increased. But this doesn’t mean you can’t come up with a working, flexible budget that helps you better manage your money. There are a host of personal budgeting tools out there and some of the best home finance software helps you manage your expenses on a daily, weekly, monthly, and annual basis. Laying it all out on the table will help you know what to expect each month and plan well ahead of time.
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Prepare for Retirement
It’s never too early to begin planning for retirement. No matter what stage of your life, if you haven’t begun setting aside money for retirement, start now! This is because the sooner you do, the sooner you’ll accrue interest that will work in your favor, especially for those working for an employer that matches employee retirement fund contributions. If you don’t have an employee retirement fund, opening your own IRA or investing in savings bonds is also an easy way to accrue interest on your savings.
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Stay Healthy
Healthcare costs a lot, especially if you have chronic issues, which is why doing your best to stay healthy is always a good idea. This way you don’t have to dip into your rainy-day fund for doctor’s visits, copays, or health emergencies. If your employer doesn’t offer health insurance, apply for it as soon as you can to avoid having to pay unnecessary out-of-pocket expenses. Also, you can keep yourself healthy by avoiding smoking and excessive drinking, keeping your weight under control, and exercising on a daily basis.
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Get a Good Handle on Your Taxes
Taxes are another area that often affects savings. However, there are also savings to be made each year you file your taxes if you’ve calculated your earnings correctly or choose to work with an accountant. When you’re working, it’s important to make sure to calculate your earnings and factor in the amount of taxes that will be taken out to make certain you have enough to meet your financial obligations, like rent, car payments, buying groceries, and other important living expenses.
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Protect Your Savings
Another factor to consider is how to protect all of the hard-earned money you’ve saved. There are a number of ways you can do so, like by investing in the right health insurance, or renter’s insurance to cover the valuables you have in your home or apartment. Additionally, investing in disability insurance is also a good idea should you ever have an accident that forces you to take time off work. Lastly, working with a reliable financial planner can help you identify further areas where you can save and safeguard your wealth.
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Pay Your Bills on Time
Missing important bill payments can accrue large financial penalties. Additionally, it can also affect your credit score. That’s why one of the best things you can do in addition to creating a budget, and utilizing the best home finance software and tracking expenses, is paying bills when they’re due.
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Cut Back on Subscription Services
These days, there are so many subscription services that have recurring charges that you might not even be aware of, like Netflix and other streaming services. If you want to rein in spending and make certain you’re not throwing money out the window each month for something you don’t often use, go over all of your subscriptions and determine the ones you can do without.
Contact us today for the best home finance software and personal budgeting tools!
If you want to start saving today, it’s easy with the innovative software from CalendarBudget. We offer tools to help create a monthly budget, set up payment reminders, and more. Contact us online now for a FREE DEMO!