What are some good savings strategies?


Quick Answer

Good savings strategies include setting savings goals, using financial tools, starting small and making savings automatic, according to U.S. News & World Report. Saving is important because it helps in handling unexpected emergencies such as medical bills. It also helps in life after retirement.

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Full Answer

Having a savings goal is essential. For example, having a happy retirement or a luxury vacation in mind can help someone remember that saving is about future rewards. Writing down the goals can help determine the amount to save on a weekly or a monthly basis, explains U.S. News & World Report.

The Internet has financial tools that can help in managing and tracking the set savings goals. The tools look at how someone spends on categories such as shopping, dining and utilities. Such financial tools make the saving goal more concrete because they show areas that require less spending, according to U.S. News & World Report.

Starting small is important even when earning a small salary. The small amounts saved can add up and become a huge amount. Saving small amounts makes saving a habit that is hard to let go, says U.S. News & World Report.

Making savings automatic is a good savings strategy. For example, it is important to put money aside for future needs before spending it on bills and buying items. Having a plan that directs money into a savings account is a good starting point. The habit leaves the person with less money to spend but creates a new spending habit while making progress on the savings goal, explains U.S. News & World Report.

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