Most Americans have a hard time when it comes to saving money. However, with the rise of the internet and e-commerce, can you blame them? We can now buy things with the click of a button and have the good shipped to our house the next day. Consumer spending is a disaster in America. If you feel like you’re having a hard time saving money, this article’s goal is to help fix that problem. Let’s get started!
1. Set a budget
Every month, you and your family should sit down and write out a budget that is unique to that month. Every dollar that comes in should know where it’s going for that month. It’s not a shock that most families fail to do this. In fact, this is most likely the reason they’re struggling financially.
2. Don’t buy what you can’t afford
This is also common sense but many Americans fail to abide by this rule. A lot of people work off of instant gratification and want everything at an exact moment. Because of this, they end up putting everything on credit cards only to reach the end of the month and not able to pay it off. If you’re broke, I’d personally stay away from credit cards. Instead, take the money you need out of savings. This will ultimately make you think twice about your purchase, allowing you to make a more informed buying decision.
3. Save at least 15%
Most Americans have less than $1,000 saved for retirement with their only hope being Social Security. However, you must also make it a goal to push away 15% of your income every month into savings. If you’re budget is to tight and you can’t make the 15%, focus your attention on increasing your income. Also, save up a emergency fund of 3-6 months of your expenses. For example, if your monthly expenses cost $2,000, save up $6,000-$12,000 for emergencies. This will ultimately lead to more financial discipline and financial freedom in the long run.