National Savings Day
In honor of National Savings Day, October 12th, let's talk about saving money! Allowing yourself to save money will help you reach your financial goals, take a step toward becoming financially healthy, and change your money mindset. Saving money can seem impossible if you're already struggling financially, but you can start small by committing $1, $5, or $20 each month. Small actionable steps today can lead to a big plus for your financial future.
To celebrate National Savings Day, here are four tips to encourage you to save more money.
Reduce Financial Anxiety
After you start saving more and increasing the amount of money in your bank account, this can significantly reduce your financial anxieties. Saving money reduces stress because you know you have a financial cushion to fall back on in case of a medical emergency, job loss, or another unexpected financial surprise.
Did you know that a savings account (or any bank account) is considered an asset? Yes, your savings account is an asset to you. By building the habit of saving, you create a long-lasting discipline that will encourage others to be more conscious about their financial habits. Financial discipline helps to provide you with stability and structure.
It Pays to Save (Compound Interest)
A high-yield savings account has a compound interest, which allows you to earn interest on both your principal balance and the interest it makes. Using a simple interest savings account, you will accumulate interest only on the principal balance. The extra money that you earn from the accruing interest can sit to gather more money. It pays to save!
Plan for Major Events
We all have at least one or two major events that happen in our lifetime, and we must be financially prepared for those events before they arrive. For example, suppose you want to purchase your first car. For a less expensive car, you want to have money saved up to pay for the vehicle. For a more expensive vehicle, you want to have money saved to make a down-payment so you can reduce the monthly car payments. You will also need to save money to pay for things like your first tag, car insurance, and unexpected car repairs. Other major events that may happen sometime in your life include buying a house or planning for a big wedding. You must make a plan for your money and commit yourself to it. Planning is essential to the success of your finances.
If possible, you should make a deposit into your savings account today.