New year’s resolutions have a bad reputation as it is. Money related new year’s resolutions face twice the load of prejudice. However, you vowed this year would be different. And so you made sure to keep money on the side, cut down on costly outings every week and stayed away from overspending. But one year has come and gone and you don’t feel like this has got you as far as you thought it would.
Let’s handle things differently. Piggybanks are alright, but they’re not your safest, most serious or efficient option to set money aside. Follow this roadmap instead and 2017 is sure to bring you some good financial surprises.
- Keep track of every dollar you spend. Yes, every dollar, every coffee, every tip, every newspaper. Once you exactly know how much you’re spending on a monthly basis, gather your expenses under key categories (grocery, loans, leisure, etc.). Bank statements will come in handy in the fulfillment of this task. Also, e-banking services such as the one provided by BLC Bank will help you break down your spending habits more easily.
- Plan ahead: We often give you this advice. The thing is planning is the best way to organize and limit overspending. Add regular expenses that do not occur on a monthly basis to your budget -such as school tuitions and car maintenance- and see how it all measures up to your salary.
- Consider your savings like any other spending category. This is a great way to boost your savings habits. Always try to set aside a minimum of 10% from your income. If you can’t reach this milestone, then this might be the time to cut down on more mundane expenses.
- Start with an emergency fund: It is an absolute must to have between 3 and 9 months of expenses set aside just in case. If your current account flirts with 0 when you’ve spent all of your salary, then you know where to start!
- Then set a goal: It’s important to actually know why you’re saving money you could be spending on clothes and fancy restaurants. Whether your goal is a short-term or a long-term one, knowing where you are heading with this initiative will help you set an approximate timeline and prioritize. Do you have to change your car soon? Then maybe focus on that rather than starting to think about retirement.
- Opt for automatic transfers: This will keep you from giving in to temptation. Tell your bank when, where, and how much money to transfer to your savings account and just forget about it! This will definitely reduce the risk of spending the money which is destined to be set aside.
- Pick the appropriate tool: Banks have a myriad of services to offer. It is crucial to know which one to choose. To make things a bit easier, here are some info related to BLC Bank’s saving options:
- BLC Bank’s Savings account: BLC Bank gives you the opportunity to open a savings account with no minimum balance. Not only will this grant you a competitive interest rate, it will also give you direct access to your funds!
- BLC Bank’s Deposit Plus Account: Already got $5000 or more on the side and trying your best not to spend them? How about you place them in a Deposit Plus account? Numerous benefits await such as a welcome bonus and discounted monthly charges for all other BLC Bank accounts. Plus, freezing the account for a predetermined period of time will cancel any temptation to bite off chunks of the saved amount.
- Plan B: Because some long-term goals need to be dealt with with extra caution, BLC Bank has put together a wide range of insurance plans that enable you to get a head start on all future expenses. Check out our special plans dedicated to insuring your children’s education, securing your retirement, or setting money aside to buy a house.
Once this is out of the way, all you have to do is watch your savings grow. This will give you the opportunity to identify and fix potential problems swiftly and stick to your original plan. Who knows, it might even push you to set more money aside in order to reach your goals faster!