What if you were debt-free? What if you had enough savings to create long-term wealth? I’m sure you would be very happy with that situation, but it takes a little work to get there.
Saving money and creating wealth is a crucial part of financial stability. With a safety net, you can buy a house, be prepared for emergencies, or take that vacation you’ve always dreamed of. Many people are at different phases of the savings continuum, eager to be financially secure. Here are five simple ways that you can start saving and get on the road to financial freedom!
1. Make sure that you have the best credit cards for your spending habits.
There are many different credit cards out there and the choices can be overwhelming. Credit cards vary in interest rates, annual fees, and benefits. If you travel a lot, you’ll find ones that provide you with more rewards or cash back for spending money on travel. If you pay the minimum each month, you’ll want to focus on getting the lowest interest rate possible. In the long run, it makes sense to do the research upfront and find the best product for you.
2. Set reminders to pay your bills on time.
Every single late fee that you pay takes money out of what you could be saving. From credit cards to rent, your recurring bills all come with some sort of late fee and penalize you if you don’t pay them on time. These late fees add up and you want to avoid them at all costs! Protip: if you regularly pay your bills on time and are late only once, it’s worth giving the company a call to see if they will waive the fee.
3. Understand your spending and plan cashflow.
Keep track of what you spend from month to month and take a close look at where your money is going. Once you understand what you spend your money on, it’s easier to create a budget and see if you can cut back on anything. Be sure to stick to your budget once a plan is in place. Mint.com is very useful for understanding your spending habits and helping you stick to your budget.
4. Routinely restructure consumer debt so you can eliminate it faster.
Rates change and new offers are introduced often in the world of finance. It makes sense to take a quick look every six months or so to see if there are better offers out there for your mortgage, credit cards, etc. Whether it makes sense to take out a debt consolidation loan to pay a few debts off and have a singular payment monthly or restructure your credit cards, you should take the time to do so as it could save you a significant amount of money.
5. Set savings goals and track your progress.
First, figure out what you’d like to start saving for. It could be a wedding, retirement, a safety net, or your kids’ college education. When you have a goal you’re saving for, it can be a motivating factor that makes all the difference. Next, decide how much you need to save and when you need to have this money by. This will determine how much you should save every month. As you start saving, keep track of your progress until you reach your goal!
With these quick tips, you’re all set to start, or reinvigorate, your path to saving success. It will take some time and effort, but it’s all worth it!
If you don’t have time to do this yourself, Levanto has you covered. For an affordable monthly fee, we provide you with your own Household CFO who will build your custom budgets, help manage your cash flow, and even pay your bills if needed! Getting Levanto in your court is only a few clicks away and clients are guaranteed to perform better by saving time, money, and feeling more in control.