10 Ways to Save for the Future
“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin. Such valid words – words that probably hit home for a lot of us. Most of us understand the importance and power of saving money; however, it’s easier said than done. Accidents happen. Unexpected costs pop up. Social events call our names. Life happens. It’s hard to plan financially for the future when it seems we’re emptying our pockets left and right for all sorts of expenses.
It can become overwhelming trying to save when we have so much to pay for – therefore, it’s important to truly take time to think about saving for the future because time can quickly pass you by. Our team of financial advisors at Montoya Financial, powered by BKS-Partners, know the answer to your personal money management is a comprehensive financial plan, and sometimes you need a little help with that – such as long-term advice from professionals.
Tips on How to Save For Your Goals
For this article, we wanted to share some ways and tips you can start saving for the future.
- Create a budget and stick to it. Write down attainable numbers and be as honest about your expenses and spending habits as possible. Write down every little thing, so your budget will be accurate.
- Learn about and understand your own spending habits. Know your cash flow. Maybe you spend more than you thought you did. Are there things you can stop spending your money on? Take note of where you’re spending your money. Start small and review how you’re spending weekly to see what adjustments can be made.
- Don’t just say you will save – Save! In your budget, allocate a certain percentage for savings. Ten to fifteen percent of your monthly income is a good starting point to try and save. If ten-fifteen percent is too much to save, investigate your expenses, and see what can be cut out (for now).
- In your budget, identify needs and wants, and know the difference! Know what “wants” don’t fall into your budget and savings goals now.
- Identify all your expenses. Can you reduce or cut out some of these bills? Are all these expenses necessary? You’d be surprised how much you might be able to save from a simple review of your current expenses. Try to limit your monthly bills as much as possible if saving is your priority. For example, don’t buy a new/upgraded phone or car with a payment plan unless you absolutely need it to live.
- If you are married, make sure your spouse is on the same page as you with this budget and financial plan. If both parties aren’t on the same page, your long-term plan won’t work.
- Save when you first get paid. Don’t wait until the end of the month, especially if you’re being lenient with your budget. Automate your savings. Once you’re paid, you should try and place funds into different accounts that reflect your financial goals.
- Put some money aside in your budget specifically for spending, so you won’t have a need to dip into your savings.
- Set a goal. It can be easier to save with an objective in mind. Whether it is to save for a vacation, a new car, and emergency fund, or a down payment on a house. Once you have a goal, calculate how long it will take you to save for it.
- Keep an eye on your savings each month to see how you’re doing. Adjust if you’re not saving enough or spending too much.
Looking for a Financial Planner?
There’s no better time to start saving than now. When saving, make sure to still enjoy life too – that’s why it’s essential to budget for some spending money while you’re still saving. By following the above tips, you’ll achieve your short-term and long-term financial goals.
Keep saving on your mind. At Montoya Financial, we can help you do that. Our financial advisors will sit down with you and help you understand all aspects that may affect your financial situation. We listen to you and figure out a way forward with you.
Let’s get started planning your financial future today! We have years of experience in helping our clients move forward in their personal finances. To get started, click our financial planning page to learn more or call us at 866.279.0698