October 12th is National Savings Day - Are you Saving Enough?
National Savings Day may not be one of your favorite holidays, but it is definitely a day worth recognizing. Determining how much you should be saving depends on a lot of different factors like age, debt, expenses, lifestyle, and individual goals. However, the general advice given is that you should have a minimum of three months of living expenses in an emergency fund, and an annual savings amount of between 10-15% of your income. If you feel like you are falling behind with your savings or do not have enough in your emergency fund, decide today to get yourself back on track. Here are some of our top strategies to get you started:
Take Advantage of Your Retirement Savings Plan
If you are not taking advantage of your employer’s retirement plan match, you are leaving money on the table. Contact your HR department to set up your account and/or increase your contribution amount to at least receive the full match that is available to you.
Check Your Insurance Rates
Have your insurance coverage reviewed by a local, independent agent to ensure that you are with the best, least expensive insurance provider and are getting all the discounts you qualify for.
Manage Your Debt
Monthly debt payments can be one of the biggest hurdles when it comes to saving money. Interest rates on credit cards are often especially high and that can cost you greatly over time. Free up your income by paying down this debt, since credit card interest typically accumulates faster than what you can earn on savings.
Check Your Automatic Subscriptions and Memberships
Automatic subscriptions and memberships can be very tricky! Did you sign up for a free trial and forget to cancel? Review your monthly bank statements to make sure you aren’t paying for things you don’t use regularly.
Make Saving Automatic
Prioritize your savings by putting it on autopilot! Consider setting up your direct deposit to automatically transfer 10% of your paycheck to your savings account. You won’t even have to think about it – saving will be done automatically for you each pay period.
Work With a Financial Professional
A financial planner can help you analyze your cash flow and identify opportunities to capture extra savings. If you would like more guidance in saving more to reach your financial goals, please reach out to us to schedule a complimentary consultation.