Set up a Money Saving Plan that Works for You
The core thing when it comes to saving money is that there is no hard and fast rule that works.
Plans need to be flexible for your situation. There are always moments in life that take us by surprise, and a good money saving plan will give you the freedom to get through those periods without suffering for it with your long term savings.
You do not need to be a financial wizard in order to be financially secure in life.
Here are the top seven savings schemes that you look to adopt in your quest to build up a healthy savings account.
College Savings Plans
1. The 529 savings plan.
This is a college funding savings plan that is operated by a state with the express intent of helping a family save for their child’s college education. The great thing about a plan such as the 529 is that you can use it for any state.
So it would be possible to live in California, have a savings plan for a New York-based college but have your child attend a college in Florida.
This is because the system is aimed at all qualified colleges nationwide, and presents you with the best possible range of choices to help your child.
2. Prepaid Tuition Plans.
With prepaid tuition plans, you can basically reach an agreement with an in-state college institution that allows you to pay for college tuition in advance.
If you know that you child will attend a specific school, start making payments ahead of time. While not officially saving you money, you are saving yourself, and your child a lot of debt at the end of it all.
Day to Day Savings Plans
For those of you that have survived college and are looking to build up a pot for that rainy day. Whether it is to buy a car, a house, or simply to have a nest egg you can fall back on in times of unforeseen hardship, there is a money-saving plan that can work for you.
3. A Budget
This is an old school method for saving money, but at the end of the day, it remains one of the best options out there for most people.
Look at your finances, go through your income and expenditure, remove the waste, leave yourself a little breathing space, and the rest you put into a savings account.
It sounds simple, and it is, but the reality of saving money via a budget is that you need to be strict on yourself, and admit to what is a waste and can be slashed from your monthly costs.
4. Short Term Goals
When you are saving for a large goal, one of the best and most effective things you can do to ensure you hit your targets, is to break that sum up into smaller and smaller goals.
Set yourself milestone amounts per month or even per week, and you will soon find yourself speeding along to your goal before you know it.
A small, incremental money saving plan is a sure fire way to success.
5.Remove High-Cost Debt
The phrase you have to spend money to make money is well known, but sometimes, you need to spend money in order to save money. A very simple money saving plan could be just to remove all of your high-cost debt.
By reducing your expenditure on your highest interest debts will allow you the financial freedom to invest the extra money in any of the aforementioned savings schemes.
Planning for Retirement Can’t Come Soon Enough
Many of us cannot wait for retirement to come around, to escape the day job blues that can so easily swallow us.
However, what many tend to neglect is the need to save for your retirement. Nobody wants to reach their time of freedom to find themselves unable o afford it.
There is no better time to start saving for your retirement than right now.
6. Traditional IRA
An individually established and funded account that sets aside money based most commonly in stocks, bonds, and cash. As the individual responsible for the account, you have full control of the investments you make, and thus have full financial control over your future.
You take away the pressures that can be exerted by institutions on their investors and have a complete overview of where you will be financially when the time comes to retire.
7. Employer Sponsered 401k
A defined contribution plan is a great way to ensure that you have some financial stability in later life.
Why not let your wages save for you , and have a portion deducted each month to go straight into a savings account that can only be accessed once you retire.
While both of the core retirement money saving plans have their pros and cons, the more attractive option behind the 401k is that your payments are automatically worked each month and you have a higher limit on the amount you can accrue per year.
A Money Saving Plan Needs to Work to Your Situation
At the end of the day, every money saving plan has the capability of helping you save for a rainy day, but when all is said and done, you need to go with the one that best suits your current situation.
That is not to go saying that there is anything stopping you from having two or more saving plans set up that span the range of options.
Your financial security is something you cannot take serious enough, so if you want to start calculating what your saving options are, get in touch today. We are here to help.