It is very easy to spend all your money when you get your salary. Items such as clothing, shoes, entertainment and dining out top the list. It is fun and enjoyable to spend money but at the end of the day, you do not have money when you might need it. Be smart and follow these guidelines on how to have money for the future.
1) Have an emergency fund- have a separate savings account that is not linked to your checking account. This means you will not be tempted to dip into one account to cover the balance of the other account. The emergency fund is for necessary items like sickness, accidents and tuition for your children. Use this fund only when you really need it.
2) Have a retirement fund- some employers set aside money for their employees into a 401K. You can contribute tho this at the same time so that you can see this grow. You can also invest your money in a mutual fund that will serve as a retirement fund for you. Set aside money every month and see to it that you do not withdraw the account. Your money can grow faster this way.
3) Set aside money in your account to buy a house- if you are currently renting, now is a good idea to save money to buy a house in the future. Buying assets like a house give your more equity. With more money in your savings account, you might have a better credit score and qualify for a housing loan. Having money in your savings account is proof of your stability and banks like that.
4) Set aside money in your savings account for investments- have money in your savings account to invest in stocks, bonds, CDs and mutual funds. These offer higher interest rates and will make your money grow faster. Make sure that you know what these investments are all about so you know what you are getting into. When you invest in these instruments, you need money so having money saved up in your savings account will come in handy.
5) Set aside money in your savings account to buy insurance- It is a good idea to have a health and accident insurance. Knock on wood but you can never tell when you will need the insurance. When you get sick the health insurance will cover the cost of the medical expenses so this is a good investment. You will save money by getting health and accident insurance. It is best to be prepared since some people have never recovered from the expenses of getting sick or having an accident.
6) Set aside money in your savings account to pay-off your loans- paying off your loans is always a good idea. Loans that you can pay are high interest credit card loans, car loans and student loans. If you do not have money saved up in your savings account, you will have to resort to consolidation which will mean getting another loan.
These are just a few tips that will guide you in saving for the future. You will continue to find out more along the way as you go on saving. Remember, save for a rainy day to have a bright future.
1) Have an emergency fund- have a separate savings account that is not linked to your checking account. This means you will not be tempted to dip into one account to cover the balance of the other account. The emergency fund is for necessary items like sickness, accidents and tuition for your children. Use this fund only when you really need it.
2) Have a retirement fund- some employers set aside money for their employees into a 401K. You can contribute tho this at the same time so that you can see this grow. You can also invest your money in a mutual fund that will serve as a retirement fund for you. Set aside money every month and see to it that you do not withdraw the account. Your money can grow faster this way.
3) Set aside money in your account to buy a house- if you are currently renting, now is a good idea to save money to buy a house in the future. Buying assets like a house give your more equity. With more money in your savings account, you might have a better credit score and qualify for a housing loan. Having money in your savings account is proof of your stability and banks like that.
4) Set aside money in your savings account for investments- have money in your savings account to invest in stocks, bonds, CDs and mutual funds. These offer higher interest rates and will make your money grow faster. Make sure that you know what these investments are all about so you know what you are getting into. When you invest in these instruments, you need money so having money saved up in your savings account will come in handy.
5) Set aside money in your savings account to buy insurance- It is a good idea to have a health and accident insurance. Knock on wood but you can never tell when you will need the insurance. When you get sick the health insurance will cover the cost of the medical expenses so this is a good investment. You will save money by getting health and accident insurance. It is best to be prepared since some people have never recovered from the expenses of getting sick or having an accident.
6) Set aside money in your savings account to pay-off your loans- paying off your loans is always a good idea. Loans that you can pay are high interest credit card loans, car loans and student loans. If you do not have money saved up in your savings account, you will have to resort to consolidation which will mean getting another loan.
These are just a few tips that will guide you in saving for the future. You will continue to find out more along the way as you go on saving. Remember, save for a rainy day to have a bright future.
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Guidelines for your savings account to have a brighter future with savings account. This article, Prepare for the Future with a Savings Account is released under a creative commons attribution license.
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