Benefits of saving money range from financial stability to achieving your dreams. Understanding the importance of saving money can make life easier and fuller. Saving money is a long term process and requires planning.
What if you want to start your own business or move to a different city to take a different job?
It takes money to do these things. Having the maturity and foresight to save money helps allow people the opportunity to achieve their dreams.
What happens if you lose your source of income and you can't pay bills anymore? What are you going to do?
Money should be saved for an emergency expenditure, which may suddenly arise. Saving a small amount of money often and devloping a fund a fund will help ease stress during an unexpected crisis.
What do you want? Do you want to buy a house or a car?
In today's economic conditions big purchases are going to require down payments. Saving a little bit of money each month will ensure your future dreams come true.
Wouldn't you agree your financial condition often is reflected in your daily life?
Those who are living from paycheck to paycheck are more prone to stress. Having a sufficient amount of money does provide confidence, freedom and peace of mind.
Still Having Trouble Saving?
Start saving for a college education as soon as possible. The sooner you start, the easier it will be, and the more flexibility you will have when it comes to college choices. Here are some practical tips on how to get started:
Choose a specific dollar amount, such as the projected cost of public college tuition. Or choose to devote a fixed percentage of income to future college costs. Having a clearly defined goal, will help in planning, reaching, and measuring progress towards that goal.
Time is your greatest asset. The sooner you start to save, the more time there will be for your savings to grow.
Set up an automatic transfer from your checking account to a savings account or your college savings plan.
Get started saving, even if all you can save is $10 or $25 a month. Saving something is better than saving nothing. It is much easier to increase the amount you save after you get started.
Section 529 College Savings Plans provide a tax-advantaged way of saving for college, similar in concept to a 401(k) or IRA. The earnings in a 529 plan are tax deferred, and distributions are tax free if used to pay for qualified higher eduation expenses. The parent, as the account owner, controls the 529 plan account, not the child. The money in a 529 college savings plan will have a minimal impact on your child’s eligibility for need-based financial aid.
Financial Aid is one of the avenues students use to pay for college tuition and related expenses. There are many different types of financial aid. Grants or scholarships do not need to be paid back, while loans do.
Whether you are in college or have already graduated, in order to save money you need to manage it. Here are a few tips on reducing your expenses:
One aspect of saving is save money on the items you buy, looking for deals or shopping where prices are cheaper, but what about saving for your future needs and wants? Learning to save and putting away money for later needs and wants is one of the single most important aspects of being financially smart. Using the same S.M.A.R.T. criteria as Setting SMART Goals, you can learn to save smart.
|Interest Rate||Monthly Deposit||Amount in savings account after:|
|1 Year||2 Years||3 Years||4 Years|