Simple Ways to Raise Your Savings

Many people starting out in their careers find themselves burdened with lots of debt (perhaps from student loans, credit cards and car loans) and very little savings for future needs. But there are simple strategies for gradually building small savings or investments into large sums, even during your school years, and often with the help of automated services that make it easy. Here are key examples.

Save for specific goals. You should have a savings plan for large future expenses that you anticipate — perhaps education costs, a home or car purchase, starting a small business, or preparing for retirement (even though that may be many years away). And, young adults just starting to be responsible for their own expenses should build up an “emergency” fund that would cover at least six months of living expenses to help get through a difficult time, such as a job loss, major car repairs or unexpected medical expenses not covered by insurance.

Commit to saving money regularly. This is important for everyone, but especially if you are supporting yourself financially. Aim to save a minimum of 10 percent of any money you earn or otherwise receive. Putting aside a designated amount is known as “paying yourself first,” because you are saving before you’re tempted to spend.

Put your savings on auto-pilot. Make saving money quick and easy by having your employer direct-deposit part of your paycheck into an insured savings account. Your employer or your financial institution may be able to set this up for you. If you don’t yet have a steady job, you can still set up regular transfers into a savings account.

Make use of tax-advantaged retirement accounts and matching funds. If you’ve contributed the maximum at work or if your employer doesn’t have a retirement savings program, consider establishing your own IRA (Individual Retirement Account) with a financial institution or investment firm and make regular transfers into it. Remember that you can set up an automatic transfer from a checking account into savings or investments for retirement or any purpose.

Think about ways to cut your expenses and add more to saving. Differentiate your earning and expenses. Look Your Monthly expenses from food to phones and think about the ways to save. For financial services, research for investment plans through which you can get extra income for secure future. You can also contact financial advisor for investment