Blog > Wealthful Wednesday: Tips on saving money
- An emergency fund is a must. Chances are you have already been told that you need an emergency fund somewhere in the ballpark of three to six months of your income.
- Don’t just save money, save for your future. There IS a difference!
- Start saving for your retirement as early as possible. Few people get rich through their wages alone. It is the miracle of compound interest, or earning interest on your interest over many years, that builds wealth.
- Save your windfalls and tax refunds. Every time you receive a windfall, such a work bonus, inheritance, contest winnings, or tax refund, put a portion into your savings account.
- Save your coins – literally. Putting aside just 50¢ a day over a year will get you almost halfway to an emergency fund.
- Treat yourself but use it as an opportunity to save. Match the cost of your nonessential indulgences in savings. So, for example, if you splurge on a smoothie while out running errands, put the same amount into your savings account.
- ‘Start Small. Think Big,’ with a short- term goal. The truth is, people save more successfully when they set a short-term goal. For instance, committing to saving $20 a week or a month for 6 months is much more attainable that setting a goal to save $500 a month for a year. Once you reach the short-term goal, you’ll have created a habit of saving you can be proud of! You’ll be able to keep going strong with a new goal.
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Real Estate Brokerage | License ID: EC100081812
Real Estate Brokerage License ID: EC100081812