GROW your SAVINGS
Tips for cutting expenses, setting money aside
O ne of the keys to successfully managing money is to save money. Conventional financial wisdom recommends that men and women have between three and four months’ worth of earnings in their savings accounts to cover themselves in case of an emergency. But many people live paycheck to paycheck, while others are mired in debt.
A 2013 survey from BankRate.com found that roughly three-quarters of Americans have little emergency savings. Many working professionals find it hard to save any money once they have paid their monthly bills, including home expenses, child care and other common expenses.
Financial analysts point to consumer trends among younger generations as one possible cause of the dwindling emphasis on saving money. Previous generations were taught the benefits of saving and being frugal, but nowadays, many people struggle to distinguish between necessities and luxuries. More readily available access to credit and a more materialistic culture may also be contributing to fewer dollars being saved.
“Growing the balance in your savings account or plan is challenging,” said Stacy Munford, branch manager at First Arkansas Bank & Trust in Jacksonville. “With discipline and reducing temptation, a savings plan for a family can be very rewarding and offer peace of mind at a difficult time. The best advice I have learned in saving for my family is to have enough to live on for at least six months.”
While saving may seem like an uphill battle, a little saving can go a long way. Explore these relatively painless ways to cut back and save more money.
DO IT YOURSELF
Make a list of all the service providers used — from manicurists to hair stylists to lawn-care professionals — and figure out where cuts can be made. Doing all or a portion of the work yourself can save a considerable amount of money.
“Planning for short-term and long-term savings can be helpful,” Munford said. “Setting goals for emergencies, vacations, a new car, a new home and education can be a great start in the right direction for [a family of] any size. Considering your family’s monthly expenses, budgeting and limitations will allow you to stay on track with your savings goals and plans.”
REVIEW YOUR SHOPPING CART
Impulse buys can bust budgets. When grocery shopping, take some time before getting in line to review your potential purchases.
“Documenting what is being spent monthly can help reduce spending and allow you to focus on your priorities,” Munford said. “A review of your budget each month will help pinpoint your do’s and don’ts for the months to come to stay on track with your goals.”
LEARN TO COUPON EFFECTIVELY
Although you need not go to extremes, use coupons when shopping, and learn how to pair sales with coupons to earn even greater discounts. Many blogs and websites help make the process easier, telling you when and where to clip coupons. Sometimes you can print coupons directly online or load discounts to a shopper loyalty card.
SCALE BACK ON CERTAIN SERVICES
Assess your lifestyle to determine which services you can live without. If you rarely watch television, you may be able to reduce your cable or satellite package. Figure out if bundling services really does save you money. Add up how many minutes you use on mobile-phone plans, as well as the amount of data. You might find that you do not need the biggest phone plan after all.
“First Arkansas Bank & Trust offers a wide variety of products that can help with just about any savings plan our customers may need,” Munford said. “Our technology can also be helpful in keeping up with the monitoring of your funds via online banking, mobile banking and tablet banking.”