How to Start Saving

Mar 29 • Financial Planning • 222 Views • No Comments on How to Start Saving

While preparing a financial budget can be a difficult task, committing to it over the long haul may be even more difficult. Here are a few general tips to help you start your budget planning and get yourself on the savings track:

1) Watch what you spend. Begin the process by recording all your expenses, including living expenses, utilities, child care services, and necessities such as food, clothing, and medical care.

2) Treat savings like expenses. You will be more inclined to put money aside for savings if you treat it like an expense that must be made on a regular basis.

3) Allocate income in terms of percentages. Determine what percentage of your income goes to each expense, and then categorize these expenses as either fixed or flexible. Generally, flexible expenses, such as entertainment and dining out, are the biggest budget busters.

4) Prioritize your expenses. Take your list of expenses and rank them from most to least important. Eliminate the unimportant expenditures and redirect this money to a savings program. Gradually, try to reduce unnecessary expenditures. As you eliminate expenditure amounts, write a check for a like amount and deposit it into a special account.

Obviously, each person (and therefore each budget) is different.  You may have additional factors such as debt and complicated compensation.  It may be a good idea to seek help from a trusted financial planner.

Remember, making life count!® means turning your financial future and well being into top priorities. A disciplined savings program can ultimately pay you dividends that will help solidify your financial future. For more information, visit our website at makinglifecount.com or contact Ashley Kopmeyer –akopmeyer@makinglifecount.com, (913) 345-1881.

Photo credit: Alan Cleaver via Foter.com / CC BY

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