Banks aren’t necessarily a model for life. However, they can be a good indicator of the state of the economy, and when keeping their money on the sidelines due to uncertainty then maybe people should be following suit as well. The truth is families across the board are struggling to make it today let alone have anything left over at the end of the month. Still, there are a few ways that families can get on top of their finances and start putting a little money on the sidelines for themselves after the month’s end.
Like anything else dealing with finances it always starts with taking notes on the money going out every month versus the money coming in. Without a clear picture to work with here it’s hard to pinpoint areas of the budget that need improving. This is the first place every family should start that takes their savings seriously. There are also plenty of workbooks, templates, and software programs that can really help to put things in to perspective, but the important thing is to get in the habit of keeping tabs on income and expenses.
After looking at the bigger picture there’s usually some common areas of expenditures that are taking more than enough from the family’s savings. Some of these things may require small sacrifices without necessarily compromising the quality of life. Cutting back on expenses like entertainment for example could be a relatively painless sacrifice in order to begin saving money. Instead of eating out two nights a week the family could go out to dinner just one night a week. This may not seem like a lot, but added up over the course of a month this could be an additional $200 in savings. They could also start clipping coupons and seeing if they are able to save money on their overall food expenses. Use fixed rate savings accounts when you start considering opening up a new account.
Utilities are often another area where the expenses could see improvement. Most people just receive their bill and pay it every month without giving much more thought to it. However, a simple phone call to these providers could negotiate a better rate. In fact, some of them even have budget plans available that many families aren’t even taking advantage of.
The other side of this coin is to make improvements on the money coming in every month to help boost the savings. This can be from one of the parents getting a second job. In fact, this is probably the quickest way to begin adding to the savings account. However, this is probably not the best long-term solution, and after a short while it could even begin to negatively impact other areas of family life. Another solution could be to combine resources to potentially start a business, or begin working on the investment portfolio to increase the income and savings accounts that way.
In the end, most families can find somewhere to start kicking back a little money every month. Consider BM Savings for your account needs this year for your family. These tips here should be a good launching point to achieve just that.