Budgeting is an essential part of financial success, as consumers need to know where their money is coming from and where it goes. But, in some cases, creating a budget isn't enough to avoid spending too much money, as unexpected expenses can arise, which is why an adequate savings account is necessary. However, not all consumers are able to save a lot of money each month, but there are some methods they can use to boost the amount they put away.
Consider savings as a bill
Each month, most Americans have bills that need to be paid. One of the best ways to ensure money is saved is to treat it as an expense. For example, if people have a credit card payment of $50 each month, it might be a good idea to to match that amount for a savings account. To make sure this "bill" is paid, consumers can set up an automatic deposit from their paycheck so they don't even have to think about it.
Set up a bank account with funds that are difficult to obtain
Maybe one of the biggest reasons Americans struggle to maintain a healthy savings account is due to the fact that these funds are so easily accessed. For instance, all someone needs to do is go to the ATM to withdraw money. To prevent this from happening, it would be wise for consumers to set up a savings account that doesn't allow such easy access. Perhaps the simplest way to accomplish this feat is to get an account that doesn't come with an ATM card.
Be economical with the car
Sometimes, saving more money is as easy as reducing other expenses. Cars cost consumers a lot each month, but there are ways to reduce the costs associated with vehicles. If a car's manual suggest premium fuel, it may be a good idea to speak with a mechanic or expert to see if it would be possible to get away with regular gasoline. This move could save people a significant amount of money over time.
Getting better gas mileage out of a car is another way to have more money to save. A few simple tricks that can be done to increase fuel economy include properly inflating tires, replacing air filters and removing extra weight.
April Lewis-Parks has more than 15 years of experience in the financial sector, she is a certified financial counselor, and a consumer affairs advocate. As the director of education and public relations for Consolidated Credit she is dedicated to generating awareness about personal finance issues and acts as their consumer affairs advocate. As host the of MissMoneyBee.com, she promotes financial education and offers timely and informative personal finance articles to educate the public.
April’s promotional efforts can be seen in past issues of the New York Times, Washington Post, Newsday, Consumer Reports, the Business Journals, Money Magazine, Glamour, Cosmopolitan, Family Circle, among others.
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