Saving is probably about as simple of a core financial concept as it gets. You put away money for expenses you’ll need to cover later or to anticipate unexpected financial situations.
However, just because the concept is easy to understand doesn’t mean the practice is. There are many roadblocks to saving such as limited income, recurring expenses, debt, and other obligations. Throw in paying for big items like a student’s college education or a mortgage and saving becomes even more difficult.
This is why the better approach to saving is to save smart. As with debt elimination, saving strategies seek efficient ways to overcome financial obstacles and maximize saving opportunities. In some cases, this can be a simple as setting auto-deposit among between a checking and savings account or identifying reducible expenses. Some cases may involve advanced strategies and financial vehicles. Your situation is specific and will require a custom-tailored approach.
There are three major points to consider when developing your saving strategy:
You Have To Know What You Are Saving For
Any kind of saving is good, but having a definite goal will help craft a sustainable plan. Vague goals often get vague results. Even if your objective is to have a pool of cash to handle unforeseen emergencies, having a target amount focuses you toward the end goal.
Saving Is Possible, Even When Dealing With Debt
Efficient debt elimination strategies complement efficient saving strategies. Many consumers give up on the idea of saving because of the weight of debt. Not only is it possible to save while eliminating debt, it is to your benefit.
The Longer You Wait, The More Difficult It Becomes
The best time to develop a saving strategy is now, especially if your savings goals focus on retirement and emergency planning. Because of longer life expectancies, inflation, and taxes, what you need to put away for retirement, will need to be larger than previous generations. Should you face a financial hardship or market downturn, you’ll have less time to recover before retirement or may have to delay retirement past your ideal age.
Although every client presents a different set of needs, goals, and challenges, I provide knowledgeable and expert attention to anyone who does business with me. To begin exploring your saving strategy options, call 919.518.7728 or fill out the form below.
Fill out the form below to learn more about proper saving strategies.