FINANCIAL PLANNING BASICS
The first step to revamping your finances is to plan. We’ve compiled a few practical, manageable tips to help grow your savings and work towards financial stability.
1. START AN EMERGENCY FUND
Hope for the best, but plan for the worst- that’s where an emergency fund comes in. Even if it’s just a few dollars a week, set money aside for any larger expenses that may come up in the future. Ideally, you want your Emergency Fund to have three to six months’ worth of expenses; however, that’s not always possible during this current economic climate. At the very least, try to have at least $1,000 readily available to withdrawal.
2. LIVE WITHIN YOUR MEANS
Itemize your purchases from past months and see if there is a trend of anything that can be considered “unnecessary spending.” If the answer is ‘yes’ when you ask yourself “can I survive without this?” take that amount of money and put it into your Emergency Fund instead.
3. CONTRIBUTE TO YOUR RETIREMENT PLAN
If your employer offers a 401(k) plan, take advantage of it. Have the goal of contributing enough to maximize the matching contributions from your employer. If you don’t have access to a 401(k), open an IRA (individual retirement account) to grow your money quicker with tax-deferred earnings.
4. SAVE, SAVE AND SAVE!
Assess your obligatory debits (rent, mortgage, bills, grocery, etc.) and take a comfortable percentage of the leftover and put it into a savings account. You’ll have the peace of mind that comes with having extra in the bank, and establish a healthy habit of saving each month.
Remember: shavings make a pile! By taking control of your finances, you’re planning for a more financially stable future. Have more questions on how your money can work for you? Call us toll free at 1-800-584-0015 or visit our website at www.axiombanking.com.