Today is National Savings Day, which is a great opportunity to give you some pointers on how you can save money!
Budgeting your monthly finances is key to determining how much you can save per month. We recommend going by the 50/30/20 rule: 50% of take home pay for needs, 30% for wants, and 20% for savings. Budgeting can also keep yourself on track and hold yourself accountable with your spending.
2. 401(k) Match
If your company has a 401(k) match program, you’d be crazy not to utilize it. Let’s say your company provides up to a 4% match. If you contribute less than 4% of your pay to your 401(k), you’re missing out on free money. We recommend to at least put in as much as your company is willing to match. (Also, if you do have a 4% match and contribute that much, there’s effectively 8% of your pay to go towards your 20% savings goal!)
3. Save for Retirement ASAP
This one’s pretty simple. Start saving for your retirement as soon as you possibly can. If you put that money in a good spot, like a Paramount Bank High Yield Checking Account, you will see your money grow much more because of the extra time it is in the account. You need to have enough money saved up to sustain you for at least 20-25 years if you are planning on retiring at age 65.
4. Save Your Random Money
Whenever you sell something on eBay, win a contest or bet, get your tax return, get your bonus check, etc., put that in your savings account instead of blowing it on dumb stuff you don’t need!
5. 24 Hour Rule
Impulse buying is probably the leading cause for savings account neglect. Picture this: you are perusing Amazon looking at all of the cool stuff. You see something that catches your eye, and without even thinking about it, you throw it in your cart. Hopefully you have some excess funds pay the credit card bill later, but most likely, that money would be put to better use in your savings account or other investment. Next time you find yourself in this situation, utilize the 24 Hour Rule. Wait a day and sleep on it before you buy that cool new gadget!