Saving Makes Cents

The reality that we live in is that credit trumps saving. Why wait and save up for a purchase when you can put it on a credit card and get it today? $747 billion is why. That's how much credit card debt U.S. consumers owe, according to Nerd Wallet’s 2016 American Household Credit Card Debt Study. Saving is the answer. Here's why:

GoBankingRates conducted a survey last year and discovered that nearly 69% of Americans have less than $1,000 in savings. That's more than half of the country. So, if that 69% were to lose their jobs today, they would be in serious trouble. Heaven forbid any emergencies arise during that time. Sound scary? It is.

Another common headache we are all familiar with is car trouble. You take it to the shop and find out that there are several issues. You're looking at upwards of $1,200 to get everything fixed. So where do you find the money to cover this unexpected expense since you only have $234.71 in your savings account? You guessed it, credit cards. 

What about retirement? Sure, you are likely contributing to social security, but that won't be nearly enough for you to get by or have the lifestyle you want. You should also be saving and contributing to an alternative investment product like a 401k or IRA. We're living longer than ever before so more money is necessary to sustain our later years. This means that you need to start saving.

Do you have children? Getting an education gets more and more expensive each year. American student loan debt is now $1.3 trillion. For many people, they continue paying on that student loan debt well into their thirties or even forties, after receiving their education. Saving and preparing for college can drastically reduce the financial burden it could bring. Start planning now!

Okay, I won't keep scaring you with facts. I'll share with you how you can avoid all of this and save more than you have ever before.

Spend less. Yep. That's it. Spending less than you earn will create a surplus that you can then put into your savings. Here are several ways to accomplish this:

• Dine out less often. 
• Cook at home! Plan your meals and always grocery shop with a list—if it's not on the list, it stays on the shelf.
• Use coupons on eligible purchases.
• Shop around for the best price and negotiate using cash.
• Do a budget and cut unnecessary expenses, such as premium cable, magazine subscriptions, gym memberships (you know you weren't going anyway), etc.
• Shop your insurance rates on a yearly basis. We recommend an independent insurance agent who can shop around for you. This can save you hundreds of dollars a year. 
• Reduce your debt load. Think of all the money you could save on just interest alone.
• Have a plan for your tax refund if you receive one. Most people blow this on ridiculous things that bring no value to their life. 

Just doing one of these things will save you hundreds. Cents add up to dollars. Imagine how much you could save if you did everything in this list—which is in no way exhaustive. You'll be well on your way to securing your financial future.