Gear up Your Savings with 5 Smart Ways

save smart way

Credit cards and American have had a strong love affair since a long time. Americans love to use their credit cards to buy whatever they like- luxury to trifle items. Now, as with the vehement use of their credit card debts have turned unmanageable, so Americans are trying to concentrate on savings.

I think Americans now have taken the motto “savings is better than spending.”

Well, it is almost the end of the year, but you can give a fresh start using 5 smart savings tips.

Rest On a Savings Cushion

Presently only 25% of Americans are having emergency savings and the majority is going to need this tip. The biggest barrier to saving is not being in the habit of saving often. The best way to get into this habit is to pay yourself first.

Pay from your account directly or use your paycheck or checking your account into a dedicated savings vehicle. This you can repeat with other goals that you aim for. This includes paying down of debt or saving for retirement not instead of those goals.

You are not going to miss those that you cannot see. And if you keep your savings in an autopilot mode then unplanned expenses come along and chew a hole in what you may have saved.

Have a High Yielding Savings Account

When you opt for savings, the term high-yield may seem exaggerated. Since you know that top-yielding accounts hardly pays you 1%.

Well, when you create a rainy-day fund you need three things in total.

  1. Get the money in liquid form, so that you can use it whenever you want.
  2. It must be free from any kind of investment risk.
  3. Try to earn a return that can preserve your buying power against all the oddities of inflation.

High-yielding savings accounts are insured by the Federal Deposit Insurance Corporation, and in this case money market fulfills the above two requirements. Best of all these accounts, can be found with little or nothing in the way of minimum deposit, that are available to consumers on any of the 50 states in America.

Keep a Track of Your Monthly Spending

Just 58% of the Americans keep a track of their monthly spending and this helps to achieve two things in general: It helps to determine the places where one can cut back and the second one can maximize their saving effort.

If you are able to track your monthly payment for about two months, then you can easily build out a realistic monthly budget. If you spend less than you have planned, then put that excess amount into your savings account or use it pay down the outstanding debts.

Contribute To IRA

If any one of you in your house, you or either your spouse is able to earn income, then you are eligible to contribute to an individual retirement account or IRA. You can open an IRA with a bank, credit union, brokerage firm and invest the way you like. You know IRA is a great way to supplement the asset allocation of the workplace retirement plan, where you may have limited access to investment lists.

With IRA you get ample of options to choose your investment that are not available in your retirement plan, like commodities, individual stocks, giving you access to broader investment options.

Better To Make Tax Adjustments

If you are fighting back with a big tax bill, then adjusting your paycheck withholding can be a clever move. The tax refund is a clear indication of having an interest-free loan to Uncle Sam for the next year. It is better to have a raise by having less withheld from each paycheck, and you are going to enjoy that money throughout.

Now if your shoe is not fitting you and you have ended up this year with a big tax payment then having additional money withheld from each paycheck can help you to restrain from having the same thing to get repeated.

These tips are just a few from the big bunch of saving ideas, if you think that these few are appropriate for you, then do give it a try for a better financial year.

Author’s Bio

Shaun Perry, author of this article is closely associated with renowned contact centers that leverages quality financial solutions. She shares her knowledge on the services provided by financial services call center to both large and small businesses.

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