By the beginning of April, 2015, you must be thinking about the best way of improving your personal relationship with money. Well, just as you can improve any relationship through love, here too you have to enhance your relation with money by loving it. You can never enjoy a good relationship with money unless you love it, through thin and thick. Americans always share a lovely relationship with money but at the same time they share a love-hate relation with Budget, which is the key to saving money for the near and the long term future. If you keep earning money and stop saving it, soon you will find yourself as a broke.
This is the reason why Americans keep placing an increased emphasis on saving, and almost 1 among 5 people cite saving as their topmost financial priority. As we have just crossed the first four months of 2015, don’t you think that this is the best time to give yourself a fresh new financial start? So, if you wish to boost your savings and build your financial safe in 2015, here are some of the best money-saving tips that can help you chase your dream. Check them out.
- Either start or increase your savings account: Studies reveal that fewer than 1 among 4 Americans have sufficient emergency savings account and an alarmingly high 28% of the Americans don’t have a dime in their emergency savings account. Hence, majority of the Americans need to pay heed to this first tip. It is true that the biggest obstacle to saving money is not being into the habit of saving money. So, the best way to get into financial shape is by paying yourself first. You can have your money deposited into your savings account or even have your checking account linked to your savings account. This goal can be achieved side by side with all your other goals.
- Try to look for a free checking account: Most Americans save money in a wrong checking account due to which they waste hundreds of their hard-earned dollars out of pocket almost every year. According to the different states of America, an average checking account (interest-bearing) charges a monthly service fee of around $14.76 and such accounts also require you to maintain a balance of more than $6000 with a 0% rate. Instead of saving money in such accounts, you can look for an account that charges 0 monthly service fees and doesn’t also need a minimum balance to maintain the account.
- Have an online savings account: When you look for a rainy-day fund, you have to take into account 3 requirements: it should be liquid, free from investment risk and you should be able to earn a return that preserves your purchasing power against the inflation effects. Best of all, such savings accounts can be easily opened with little or no money and such accounts are also available in around 50 states in America.
- Aim to pay down your high interest debt: For majority of the households, perhaps the best return that they can get on their money is by paying down high interest credit card debt. Whether you’re carrying balances at 12-22%, credit card debt is the most expensive debt that plays the primary role of burning a hole in your wallet. If you can plow extra cash and devote that money towards repaying credit card debt, this will help you improve your finances as it reduces the total outstanding balance. Consumers who strong credit profiles can even look for balance transfer methods at about 0% interest rate. They can even sign up with a trustworthy debt consolidation company after going through the debt consolidation reviews in order to get an alternative repayment plan for their multiple debt accounts.
- Start contributing money in your retirement fund: Whether it’s 2015 or any other year, contributing money towards your retirement fund is one of the most vital financial steps that you should take. If your employer offers you a 401(k) account, you can easily contribute money to this account, irrespective of whether or not you get a matched contribution from your employer. This is a tax-deferred account that tightly secures your future and that helps you lead a debt-free retired life.
- Shop around before getting insurance policies: Cutting down expenses is definitely a way of saving the money but one of the most overlooked ways of saving money is on insurance policies. You should make a comprehensive market research about the premiums so that you don’t have to pay a huge amount. If you have policies like health insurance, life insurance, auto insurance and renters insurance, you should shop around so that you can save enough money every year by paying affordable premiums.
Therefore, when you’re wondering about the ways in which you can save money in 2015, you may pay heed to the tips mentioned above.