Money Management, Saving

Saving for Major Purchases

By: FaithFi, Rob West & Jim Henry

One of the simplest ways to stay out of credit card debt is to save for major purchases. By planning ahead and saving for things you know you’re going to need or want in the future, you avoid having to borrow. Taking certain steps can make this a lot easier.

You might be thinking, “Save for things I’ll need in the future? Isn’t that what my emergency fund is for?” Actually, no, it isn’t. Saving for expected, major purchases is sometimes called a “sinking fund,” a term borrowed from the business world.

It’s a pool of money you regularly contribute to so you’ll eventually have the cash you need for an upcoming big-ticket expense, like a vacation, a new car or home repairs.

You’re actually “paying yourself” to delay that purchase because your savings will accrue interest. Compare that to putting the purchase on a credit card with a sky high interest rate, where you’re paying to use someone else’s money for a time. By grasping this concept of delayed gratification, you’ll save yourself a lot of money over your lifetime.

You also won’t be tempted to tap into a retirement account for a major purchase. That is extremely expensive money. You’ll have to pay taxes on anything you withdraw and possibly a penalty. That money is intended for another major purchase, your retirement!

So what’s the best way to save for your big ticket item? First, you need a goal. For example, if you know the house will need a new roof in the not-too-distant future, and it will cost $7,500 or more (which is typical these days), that becomes your goal.

Next, look at your budget to determine how much you can pull each month from other categories to go toward your new roof. Let’s say that’s $500. Divide 7500 by 500 and you get 15. That’s how many months it will take to save up enough cash to replace your roof.

It’s okay to start small. If you can’t put away $500 a month, start with $100. But begin looking for ways you can increase that amount by cutting your expenses. Be flexible. It’s okay to adjust your savings as needed, just keep in mind that you want to reach your goal as soon as possible.

You might think it’s silly, but you can also start a change jar if you still use cash on a fairly regular basis. Empty your pockets or wallet into a one gallon jar or jug and forget about it. When it’s full of mixed change, you’ll have roughly another $400 toward your goal.

For the rest of the cash you’re saving, you’ll want to open a special savings account at an online bank to get the best interest rate. If this special purchase is several years away, you can put some of the money in CDs to earn more interest. You should ladder CDs, so that one is coming due every 6 months or so. As you near the target date for your big purchase, cash out the CDs and put the money back into savings.

Those are some tips to help you save for a major purchase. We hope you find them useful and when you reach your savings goal, let us know. We’d love to hear how you did it.

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Budgeting, Credit Cards, Credit Counseling, Debt, Money Management, Saving

Ask Chuck: Move Back from the Financial Cliff

By: Crown Financial Ministries, Chuck Bentley

Dear Chuck,

Our finances are stretched so thin that I am stressed out all the time. We live on a budget, but my husband and I both need some hope that it will not always be this way.

Living on a Financial Cliff

Dear Living on a Financial Cliff,

There is certainly reason for hope, so hang on!

Let’s put your challenges in a current economic context and then a Biblical context before I offer some practical tips to help you through this painful time.

Economic Context

With the lingering impact of inflation, a new CNBC survey reports that 70% of Americans say they, too, are feeling financial stress, and 58% report they are living paycheck to paycheck. The report pointed to several specific concerns, including a lack of savings and a dependency on debt.

“People are worried that the money they’ve saved won’t last and are worried they’re going to have to lean more on their credit cards and other sources of debt just to get by,” said Bruce McClary, a senior vice president at the National Foundation for Credit Counseling.

With rapidly increasing costs, higher interest rates, and a sense of economic uncertainty in the air, many are feeling like their finances are balanced on a razor’s edge with no margin for error.

Biblical Context

The Bible is full of people who had to face incredible amounts of stress. It is also full of principles and truth that help us to reframe our present circumstances. I am reminded of Romans 8:18–21:

I consider that our present sufferings are not worth comparing with the glory that will be revealed in us. For the creation waits in eager expectation for the children of God to be revealed. For the creation was subjected to frustration, not by its own choice, but by the will of the one who subjected it, in hope that the creation itself will be liberated from its bondage to decay and brought into the freedom and glory of the children of God. (NIV)

We live in a fallen world—in bondage to decay—because of mankind’s disobedience to God, but a promise of freedom and redemption awaits those who are children of God. Considering our eternal future, our present trials and tribulations are insignificant. Remember to keep your present cares and burdens in the context that this is not our home. We temporarily manage what God provides and seek to be faithful until we have finished our race.

Help in Reducing Your Financial Challenges

Three very practical steps will help you reduce the immediate pain you are in.

First, no matter how much or how little income you have each week or month, be sure that you are spending less than that amount. Think of the old game of limbo, where you have to bend your body to get under a bar without knocking it off. The bar represents your income. Your attempts to get under it represent your control over your spending. That is why a budget is so very helpful. You can adjust your expenses to ensure that you never exceed the height of the bar (your weekly or monthly income).

Second, build an emergency savings fund. You need at least $1,000 set aside to help with unexpected expenses. That is the bare minimum. Set a goal of saving three months of overhead. Emergencies always happen, so this is non-negotiable. In the CNBC survey, most of those who report living paycheck to paycheck say they do not have any money saved. This is like flying through the air on a trapeze bar without a safety net. It is scary! Crown has some free tools to help you get that accomplished. Perhaps you need to adjust your budget. You might benefit from our budgeting resources and a coach.

Finally, make a plan to reduce your debt and break any dependence on credit cards, store accounts, buy-now-pay-later plans, or payday loans. The largest expense in most American budgets today is the interest expense on debt. Just imagine how free you would feel without debt hanging over you each month. We partner with Christian Credit Counselors to help free people from this burden.

Thank you for writing. Please know that we want to help! May God give you His peace and the freedom you so desire.

Christian Credit Counselors is a trusted source of support in assisting people with getting on the road to financial freedom. Reach out to them today; they may be of great benefit to you.

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Budgeting, College Debt, Kids & Money, Money Management, Saving, Student Loans

Ask Chuck: How Do I Financially Prepare My Child for College?

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

I’ve tried to prepare my daughter to handle money responsibly while she’s away at college. But, I’m concerned that peer pressure and the stress of classes will throw her off track. Any tips?

Budget-Minded Mom

Dear Budget-Minded,

Congratulations are in order for preparing her for this crucial transition. Far too many students leave home without a clue how to manage money and are vulnerable to making life-altering messes.

While most Americans assume that student loan and consumer debt is the only way to get a college education today, this is simply not true, regardless of income. I have a friend who immigrated here from China. She only had $2,000 to help her daughter when she left for college. When her daughter finished her undergraduate and decided to seek a master’s degree, her mother asked if she needed financial help. Turns out that her daughter had been able to graduate without borrowing money and still had cash in the bank. She explained that she had been saving and investing for years and had $70,000 cash in the bank before entering grad school!

Financial preparedness for college students and young adults is crucial today. Demands come from all directions and unless students understand the value of a dollar, they can blow through spending money and quickly rack up consumer debt and long-term student loan debt before they ever realize the consequences ahead. 

Having raised four sons, we can appreciate your concerns but also want you to know that it is possible for our children to swim against the tide. 

Set Clear Boundaries

Make sure there is a clear understanding of what you will pay for and what your student is required to cover. Typically, students are more careful with the money they have earned, so avoid robbing them of an important lesson by giving them everything. 

For example, if they have a car at college, determine who will pay for gas, insurance, tags, parking, maintenance, and repairs. If they’re going to be responsible for those expenses, then they need to find a part-time job. That’s real life! If you plan to cover the expenses, have clear stipulations and terms (e.g. you’ll only cover those costs as long as they remain in school and maintain a decent grade point average). Every family situation is different, but the goal is to grow financially mature adults.

Some Practical Tips 

Here are a few additional tips you may want to teach the young people in your life:

  • Exercise self-control. Don’t drink, smoke, or binge with money
  • Live like you’re poor in college and you won’t be when you graduate!
  • The earlier you save and invest, the more you’ll have for your future
  • Boundaries now grant freedom later
  • Be careful loaning money
  • Keep healthy snacks on hand and in a backpack
  • Use cash to avoid overspending
  • Avoid debt. Period. Set a goal to graduate without student loans or consumer debt.

What They Need to Know

  • How to use a checking account and debit card – understand bank fees
  • How to make deposits into a savings account – preferably at a different bank to avoid easy withdrawals
  • How to use a credit card wisely – pay it off in full each month
  • How to make a budget and keep track of expenses
  • The importance of good credit and how to establish it
  • The joy of giving and saving with intentionality
  • Student loans will be offered but try to avoid them

Prevent Medical Expenses

  • Cook healthy meals or use a meal plan wisely
  • Sleep, exercise, avoid alcohol and drugs
  • Seek a community of Godly friends
  • Take care of mental health: limit social media, join a church, volunteer

Practical Tips

  • Keep $100 tucked away in your wallet for emergencies only
  • Guard personal information
  • Know how and where to buy/sell used textbooks
  • How to study well, apply for scholarships, and work part-time
  • Know identity in Christ to withstand peer pressure, FOMO, and comparison traps
  • Live at home or with another relative to save dorm/apartment fees
  • Know how to make coffee, cook, and do laundry
  • Get to know the financial aid counselors
  • Work on campus: saves time/gas, and opens doors to deeper relationships with staff

Preparing our youth financially will give them a step ahead of most people. Diligence requires purpose, intentionality, and resolve. It requires renewing the mind and working toward specific goals. May they be filled with the understanding of who they are in Christ and the knowledge that they are stewards of what He gives.

And whatever you do, in word or deed, do everything in the name of the Lord Jesus, giving thanks to God the Father through him. (Colossians 3:17 ESV)

Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ. (Colossians 3:23-24 ESV)

By discussing your daughter’s financial needs, desires, and habits regularly now, you can help her avoid the mistakes that most make plus prepare her for the next stage of her career without the bondage of debt-driven decisions.

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Budgeting, Finance, Gas, Money Management, Saving

How to Deal with Inflation and Rising Costs

By: MoneyWise

The latest Consumer Price Index was released today, posting an 8.6% annual increase in May. That’s the highest increase the U.S. has seen since 1981. More importantly, it tells us that goods and services are becoming more and more out of reach. Reports have shown that these increases have already slowed discretionary purchases. Basically, that tells me there’s a lot less vacation and leisurely spending going on right now.

Our regular contributor and Compass Australia founding member, Gwenda, touched on saving the other day. And in times like this, I think it bears repeating: “The Bible encourages us to save and is loaded with great practical advice.”

That’s from the last time we heard from Gwenda. And as prices rise, we’re reminded of just how much wisdom God’s Word contains. Not everybody feels the effects, but many of us do. And one thing to weather it is to do exactly what the Bible says. As Gwenda mentioned, there’s a saying: “Save for a rainy day.” A step further, Proverbs 21:20 says that the wise save for the future, but the foolish spend whatever they get.

Sometimes, it can be hard for us to save when we don’t know what we’re saving for. But if the cost of just about everything is going up and it’s affecting you, this is the case in point for why the Bible tells us we must save. Having savings set aside right now would help weather rainy days like this.

If you’re asking how would you save, here are a few ways to get started:

  1. Make it automatic – Gwenda mentioned the automatic savings plan, as well. It’s an amount you decide and set up typically through your bank.
  2. Budget – Another recommendation by Gwenda. But don’t let this word scare you.
  3. Cut Back – I consider this separate from budgeting because the way I see it, just because I budget or plan for something, it doesn’t mean it’s necessary.

An automatic savings plan encourages you to save first, spend second. If you tithe and “pay yourself” first, you’re required to work with what’s left. A much better formula for putting more aside than if you were to spend first, save second. Saving whatever’s left over usually encourages more spending.

“Budget” is just a technical term for telling the money where to go, not the other way around. And when I say cutting back is separate from budgeting, here’s what I mean…

In our budget this month, my husband and I have planned to spend no more than $150 on dining. How much of that has to be spent, though? Well, the answer is $0.

We have to eat, but we don’t have to do that by going out to restaurants or taking out. This is my point: If you study your budget, chances are you’ll find one or two categories that either can be reduced or don’t need to be there at all.

The Building Your Finances God’s Way financial discipleship study dives even deeper into the concept of saving and much more. I encourage you to sign up for a study right here. Because it’s not just about weathering your storm.

Putting these three things into practice helps us become better financial disciples: One who can live in contentment, knowing no matter what, God provides; who can live life applying finances God’s way, giving cheerfully and with the assurance that it shall be given unto them, pressed down, shaken together, running over (Luke 6:38); and who shows others how to do the same and that there’s a reason why faith and love get us through anything and everything life throws our way.

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Activities, Budgeting, Money Management, Saving

Ask Chuck: Help Me Get Our Spending Under Control

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

We have to cut our spending this year, but I really don’t know where to begin. When I bring up the subject, my spouse always has an excuse. If we don’t get things under control, we are going to face eviction from our landlord. 

Cash Crunch

Dear Cash Crunch,

I’m so glad that you wrote to me and are ready to make some big changes. My hope is that if you set a clear direction, your spouse will be inspired to join in the effort. Forced eviction is devastating emotionally; it is expensive and wrecks your credit score. Let’s work hard to avoid it!

Some of the obvious ways to reduce spending include eliminating the big expenses, like a car payment or rental/living costs in excess of 40% of your net spendable income. Look at both of those expenses closely, and determine if you need to make any changes. If not, there are some not-so-obvious ways you can save money each month that really add up over time. Cutting what seems like a necessity may seem impossible, but over time, the sacrifice will prove rewarding. Here are a few examples I want you to consider.

Do You Really Need Amazon Prime?

Membership fees jump for new members on February 18th. Renewals take the hit on March 25th. The annual cost will be $139/year plus taxes or $14.99/month plus taxes. An alternative is to keep a shopping list until you reach a total that qualifies for free shipping from Amazon or other companies. You may have limited shipping options, but this leads to better planning and less impulse purchasing. You can also use Amazon gift cards to limit spending since a credit card is not linked to your account.

Do You Really Need That Streaming Service?

According to The Streamable, in 2021, the average viewer had five or more subscriptions. The top five include Netflix, Amazon Prime, Disney+, Hulu, and HBO Max. In May 2021, Bloomberg reported that the average streaming consumer spends $40 per month. That comes to $480 per year! Different streaming prices can be seen here. The average cost of cable TV comes in at $64 but can run from $11 to $127 or more per month.

Do You Really Need Audible or Spotify?

Free audiobooks are available via Overdrive and Hoopla with a library card. Spotify and other small monthly fees that seem insignificant can really add up. Nothing is too small to eliminate to help you avoid eviction!

There’s More

Look at your spending with a critical eye. What could you realistically eliminate? What are your real needs? What do you need to reprioritize? Small daily purchases can add up quickly.

Analyze what is spent on subscription services, fast food, coffee, bottled water, shoes, clothes, gym membership and gear, house plants, manicures, pedicures, tattoos, haircuts and color, lottery tickets, toys for children, etc.

Challenge

Ask your spouse to join you in tracking all spending for the next 30 days. When Ann and I did this years ago, we found that recording each dollar spent made us more aware of our actions. We realized that we had some costly habits. Write down your expenses. Don’t leave anything off your list so that you know where your money is really going.

After 30 days, come together and share what you learn. It may only take a few days before a heightened awareness sets in. Prayerfully discuss what you could sacrifice for six months or a year. I suggest you gently educate your spouse on the long-term benefits. Can you agree to get the help of a mentor or come under the accountability of trusted friends? How about planning a reward when reaching your goal? You can likely cut back on your spending by 25% by just changing some of your habits.

Once you get your spending under control and avoid eviction, there are many other reasons people decide to better manage their money. Reduced spending builds the habit of saving, and with the help of automatic deductions, people learn to live without. The possibilities can include:

  • Building an emergency fund
  • Paying off debt
  • Saving for retirement
  • Giving more generously
  • Having funds for vacations, a move, a business, education, holidays, births, deaths, etc.

Years ago, a woman confided in my wife that she was tired of her husband limiting her spending. She felt like she was being treated as a child. Ann listened and then asked, “Have you considered the possibility that he loves you so much that he wants to protect you and save for your future together?” The thought had never entered the woman’s mind. It changed her entire perspective and opened the door to healthy dialogue about their finances.

We enter marriage with a philosophy of money. Most often, we marry an opposite. The goal is uniting around God’s principles regarding our finances. Pray about how to lovingly communicate with your spouse. Treat him/her with respect and love so you can make progress. My desire is to see God’s people free and marriages united, strong, and thriving. We must recognize the errors in what the world has taught us about finances and have our minds renewed by God’s truth. Consider this effort to lead the way out of this crisis the best gift you can give your spouse.

If credit card debt is a source of frustration in your marriage, consider contacting Christian Credit Counselors. They specialize in assisting people with getting out of debt and on the road to financial freedom, and they are a trusted source of help.

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Budgeting, Debt, Money Management, Saving

Ask Chuck: Time to Get Out of Debt?

By: Chuck Bentley

Dear Chuck,

I have been steadily paying down debt, and the end is within sight. I’m due a sum of money for the sale of some real estate and wonder if I should pay off the remaining debt or save it. Seems like a good time to be debt-free. What would you do?

Almost Debt-Free

Dear Almost Debt-Free,

I can think of only a few reasons why you would not go ahead and become debt-free if you are able. Of course, I don’t have your full financial picture, so I will try to give you a few things to consider as you come to your own conclusion.

Shifting Sands

There is a lot of uncertainty in the world right now. Covid-19 has created stress in many areas of our lives. A Pew Research Center survey reports that half of the non-retired adults say the economic impact of Covid-19 will make it harder to achieve their long-term goals. There are medical and financial pressures along with rising mental health issues. Add to that inflation, the instability in Afghanistan, forest fires, flooding, the possibility of a stock market, and real estate bubble… Need I go on?

A major benefit to being debt-free is that you will be in a much stronger position to weather the economic storms we may face. If your overall picture is good, then pay off all the debt. But, there is more to consider first.

A Safety Net

It is great to be debt-free, but uncertain times also require that you have savings available for emergencies. You want to avoid ending up in the same position six months from now. Therefore, I suggest you give a portion, fund an emergency account, and then apply the rest to debt.

Have you ever done the limbo? The object is to get under a bar without touching it. Budgeting is very similar. Your income represents the bar. Your spending must fall below the bar every month, or you lose.

In limbo, you must take carefully-measured steps to keep as far away from the bar as you can. The gap between your body and the bar is what I call “financial margin,” which we all need. This is the space that grants peace and financial protection in the unexpected storms of life.

It is possible to increase your monthly margin quickly by adjusting your lifestyle. Consider the benefits of choosing to live on far less than you make. Manage the common budget busters—food, entertainment, and transportation—to further reduce expenses.

Other Tips

Paying down the highest interest-bearing note first will save you money in the long run. Paying down multiple small notes can provide a psychological advantage. Repay any late mortgage or rent, utilities, HOA fees, taxes, and car payments so there is no threat of losing your home or car.

Do you owe family members any money? Do not ignore this responsibility. Be honest, and treat them as you would want to be treated so that relationships are not harmed.

Be Intentional 

Even if you do pay off all your debt, it is important to manage your finances well as you go forward. Just because you become debt-free does not guarantee that you will stay that way unless you manage what you have well. Here are my three tips:

  1. Plan ahead: Commit your work to the Lord, and your plans will be established. (Proverbs 16:3 ESV)
    • Budget wisely. This will keep you from creating more debt and will allow you to build an emergency savings fund. If needed, a crisis budget can get you to a position of financial strength. Here are instructions, an online fillable form, and a spending plan.
  2. Seek counsel: Without counsel, plans fail, but with many advisers, they succeed. (Proverbs 15:22 ESV)
    • Please consider my advice as only one source of those you will turn to for help.
  3. Make wise decisions: If any of you lacks wisdom, let him ask God, who gives generously to all without reproach, and it will be given him. (James 1:5 ESV)
    • God is the source of all wisdom. When we learn His Word and commit to live by it, everything in our lives will begin to take on new excitement and joy. Using money to fulfill God’s purposes for your life will be the best financial decision you can make.

Thank you for the question. I don’t think you can go wrong if you pay off the debt and commit to following the steps above.

For more guidance, especially if your debt is related to credit cards, please consider contacting Christian Credit Counselors. They are a trusted source of help.

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Retirement & 401k, Saving

6 Reasons Why You Shouldn’t Wait Until You Make More to Save More

By: Art Rainer

“I don’t make enough money to save for retirement.”

This is a common reason people provide, especially those just starting out in their careers, for not saving. Their plan is to start saving when they feel like they are making enough money.

Unfortunately, this mindset often leads to a stressful financial future. And it could have been avoided.

Here are six reasons why you shouldn’t wait until you make more to save more:

1. The Bible teaches us that saving is wise.

Proverbs 6:6-8 says this—Go to the ant, you slacker! Observe its ways and become wise. Without a leader, administrator, or ruler, it prepares its provisions in summer; it gathers its food during harvest. Throughout Scripture, we are taught that we should capitalize on times of abundance to get us through times of scarcity. For retirement, this means taking advantage of a paycheck to get you through a time when you no longer receive income from an employer.

2. Habit-building starts now.

Habitually setting aside money for the future does not magically begin when you have more income. The best way to ensure you will actually take advantage of a higher salary is to regularly save now, regardless of your paycheck’s size.

3. Great income is often followed by greater expenses.

When people get a raise, savings is not normally the first to increase. Expenses do. We make more so we spend more. The financial margin remains thin, even with a greater income.

4. For some, “enough” never happens.

Sometimes, this happens because their career never takes off as they hope. Other times, even though their income has increased, they don’t feel like they make enough.

5. Compounding.

It is said that a reporter once asked Albert Einstein what he considered to be the greatest invention of all time. His response? “Compound interest.” Compounding is earning money on your earned money. And the best way to take advantage of compounding is to start early. Remember this formula:

A little bit of money + A lot of time = A lot of money.

6. The mantra, “It’s never too late to start all over again,” won’t be as comforting as you think in the future.

Certainly, you can start habitually saving at any point. But you can never truly recapture lost time. Every month you delay saving is a month you never get back. It is a month that you are never able to take advantage of compounding. When you delay your retirement savings, you make your climb to retirement steeper.

Don’t wait until you make more money to save more money. Start now. Make it your goal to place 15% of your gross income into retirement savings. Whether you make much or little, now is the time to save for retirement.

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Finance, Goals, Money Management, Saving

Rebuilding toward a Brighter Future with Emergency Savings

By: Consumer Financial Protection Bureau (CFPB)

This year, for many Americans who experienced financial challenges as a result of the coronavirus pandemic, preparedness means taking small steps toward rebuilding and resilience.

If you are ready to think about your bigger financial picture for the first time in months, what’s the first step?

Consider – or start – your emergency saving fund. As you build it over time, it will help cover unexpected expenses that may come, whether that be a natural disaster, unexpected illness, car trouble, or other financial downfalls. It can become an important means for avoiding unwanted debt and help you more quickly realize your dreams. In short, it can become a strong foundation for your financial future.

There are different strategies to get your savings started. These strategies cover a range of situations, including if you have a limited ability to save or if your pay tends to fluctuate. It may be that you could use all of these strategies, but if you have a limited ability to save, managing your cash flow or putting away a portion of your tax refund are the easiest ways to get started.

Strategy #1: Create a savings habit

Building savings of any size is easier when you’re able to consistently put money away. It’s one of the fastest ways to see it grow. If you’re not in a regular practice of saving, there are a few key principles to creating and sticking to a savings habit:

  • Set a goal. Having a specific goal for your savings can help you stay motivated. Establishing your emergency fund may be that achievable goal that helps you stay on track, especially when you’re initially getting started. Use our savings planning tool to calculate how long it’ll take you to reach your goal, based on how much and how often you’re able to put money away.
  • Create a system for making consistent contributions. There are a number of different ways to save, and as you’ll read below, setting up automatic recurring transfers is often one of the easiest. It may also be that you put a specific amount of cash aside each day, week, or payday period. Aim to make it a specific amount, and if you can occasionally afford to do more, you’ll watch your savings grow even faster.
  • Regularly monitor your progress. Find a way to regularly check your savings. Whether it’s an automatic notification of your account balance or writing down a running total of your contributions, finding a way to watch your progress can offer gratification and encouragement to keep going.
  • Celebrate your successes. If you’re sticking with your savings habit, don’t miss the opportunity to recognize what you’ve accomplished. Find a few ways that you can treat yourself, and if you’ve reached your goal, set your next one.

Who is this helpful for: Anyone, but particularly those with consistent income. If you know you have a regular paycheck or money consistently coming in, you can create a habit to put some of that money towards an emergency savings fund.

Strategy #2: Manage your cash flow

Your cash flow is essentially the timing of when your money is coming in (your income) and going out (your expenses and spending). If the timing is off, you can find yourself running short at the end of the week or month, but if you’re actively tracking it, you’ll start to see opportunities to adjust your spending and savings.

For example, you may be able to work with your creditors (like your landlord, utility companies, or credit card companies) to adjust the due dates for your bills, or you can use the weeks when you have more money available to move a little extra into savings.

Who is this helpful for: Anyone. This is one important first step in managing your money, regardless of whether you’re living paycheck to paycheck or have a tendency to spend more than your budget allows.

Strategy #3: Take advantage of one-time opportunities to save

There may also be certain times during the year when you get an influx of money. For many Americans, a tax refund can be one of the largest checks they receive all year. There may be other times of the year, like a holiday or birthday, that you receive a cash gift.

While it’s tempting to spend it, saving all or a portion of that money could help you quickly set up your emergency fund.

Who is this helpful for: Anyone but particularly those with irregular income. If you receive a large check from a tax refund or for some other reason, it’s always good to consider putting all or a portion of it away into savings.

Strategy #4: Make your saving automatic

Saving automatically is one of the easiest ways to make your savings consistent so you start to see it build over time. One common way to do this is to set up recurring transfers through your bank or credit union so money is moved automatically from your checking account to your savings account. You get to decide how much and how often, but once you have it set up, you’ll be making consistent contributions to your savings.

It’s a good idea to be mindful of your balances, however, so you don’t incur overdraft fees if there’s not enough money in your checking account at the time of the automatic transaction. To help you stay mindful, consider setting up automatic notifications or calendar reminders to check your balance.

Who is this helpful for: Anyone, but particularly those with consistent income. Again, you can determine how much and how often to have money transferred between accounts, but you want to make sure you have money coming in. If your situation changes or your income changes, you can always adjust it.

Strategy #5: Save through work

Another way to save automatically is through your employer. In addition to employer-based contributions for retirement, you may have an option to split your paycheck between your checking and savings accounts. If you receive your paycheck through direct deposit, check with your employer to see if it’s possible to divide it between two accounts. If you’re tempted to spend your paycheck when you get it, this is an easy way to put money aside without having to think twice.

Who is this helpful for: Those with consistent income. Again, if you’re getting a check from your employer on a regular basis, pay yourself first by putting a portion of it automatically into savings.

It might seem impossible to save enough to get you and your family through something like a furlough, job loss, or reduced hours. But any amount can make a difference and it’s never too late to start. The more you can save, the better you can weather the worst, and the faster you can recover when it is over.

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