Wednesday 23 April 2014

New to Saving? Three Tips to Start Saving Money

Saving money is a relatively new phenomenon for students in a bad economy. If you are just getting out of school, you will likely have many debts as well as many new expenses. Here are three tips to start saving money so that you can dig yourself out of that financial hole.

Make it a Priority

First of all, you must make saving money as important as paying taxes and bills. The best savers in the world adhere to the strategy of "pay yourself first." This means that you should set aside money every month to save just as money is set aside to pay bills. Many financial experts recommend saving at least 10% of the gross monthly income.

There is a great deal of psychology behind the paying yourself first motif. Savers pay themselves first because they would not pay themselves at all were they to wait. Saving money at the end of the month is about as easy as leaving a single potato chip in the bag.

Seek out Help

Secondly, get the help that you need in order to stay ahead of the curve. Many people realize far too late that professional financial assistance is a great help in saving money. Companies like are far from a ripoff for students; rather, they bring a great deal of experience to the table. Students will benefit from the mentorship of individuals who have been through similar situations and come out the other end successfully.

Make it a Commitment

Lastly, make a commitment to save no matter how small of an income you may have. This is an essential point to start saving money. Students who are just coming out of school cannot expect to have a large income. Some students put off saving until they achieve a certain level of income. This is a mistake.

Because of the compounding nature of interest in fixed bank accounts, the amount of time that money is left in an account is much more important than the amount. A person who begins saving at age 25 will need to amass around 40% of the money that a 35-year-old saver will need in order to retire at age 65 with the same amount of money in the bank.

Anyone who begins saving early, saving first and gets professional help will more than likely achieve their financial goals. Start today in order to create the most leverage for yourself. There is no reason to wait!

Do you have have any questions or suggestions? Write in comment section.

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