80%. That’s how many Americans are in some form of debt. Now, there are several factors that contribute to this statistic, however, one major problem is that Americans don’t handle their savings well. How does your savings stack up? Are you trying these simple proven methods to build savings?
Auto Deduction to Savings.
Every time you receive your paycheck, whether it be weekly/bi-weekly/monthly, have your employer place some of that money into your savings account. By having your employer do it, you will never miss it and the savings will be automatic. The recommended minimum amount is 10% of your paycheck but don’t let that hinder you from placing more into your savings. If your employer does not offer this option, do it yourself.
Resist the urge.
Pretend that your savings is a jar of cookies: You don’t want to eat all of those cookies at once, instead you want to slowly finish the jar. The same concept applies to your savings account. Now that you have money set aside, resist the urge to dip into it. If you continuously withdraw money from your savings account, then it really isn’t a savings account.
Find what works best for you to stop yourself from invading your savings. One recommendation is to label your deposits so that you find it painful to withdraw.
Download a Budget app.
There are a lot of great apps out there that make it easy to budget. Some apps such as Abukai or Wally only require that you take pictures of your receipts and from there, the app provides an expense report. If you want to be a little more ambitious, apps such as ClarityMoney automatically sync with your bank accounts to analyze your spending behavior and place money back into your savings account.
Save for Retirement.
Americans are only slightly better at saving for emergencies or other short term savings, than for retirement. In fact, Americans are vastly unprepared for retirement and the number is increasing. Talk to your employer and see what services they provide to help with your retirement. If you are not participating in employer match programs you are leaving money on the table! Also, make sure that you have your biggest debts paid off before you retire. The last thing you want to do when you retire is stress about major payments and often these major payments cause financial burdens. If you are having trouble juggling your debt before retirement, consider entering a debt management plan with Credit Advisors Foundation. We will help you become debt free – just in time for retirement!