Saving is a fundamental part of financial health as research has shown that unexpected expenses, such as car repairs, can become a hardship when people don’t have access to emergency savings funds.
“When it comes to saving, the most important thing to do is just start. Whether it’s $1 a day or a few dollars a month, it’s important to have a plan. Talking to someone who has experience can help put things in perspective. One of my favorite conversations with customers is finding out why they save and helping them understand how to get there,” said Terri Thomas, Manager of Community Banking, Virtual Banking and Business Development for Chase Bank.
Here’s how you can create your own savings plan:
Start small. Starting with small goals will begin to lay the foundation for bigger ones, even though building a safety net with just a dollar per day. Once you get into the habit, a dollar a day can turn into more when you start to learn about your spending habits and identify opportunities to minimize expenses and reallocate them to your savings. Here is a free online calculator that can help you estimate your savings over time. Remember that saving is personal: it depends on your own needs and financial situation.
Keep it simple. When it comes to creating a budget, it’s okay to keep it simple. Dedicate a notebook or section of your notes app to write down your monthly expenses and what goes in versus what goes out. A great way to start is to use tools like a budget worksheetwhich has built-in calculations to help you track your spending and might help you find ways to save.
Set an objective. Why are you saving? It could be a new phone, a car, a house. Either way, focusing on a goal can help you stay motivated to come up with a plan to get there, like setting up recurring savings or considering changes to your daily expenses.
Get tools to help you. Choosing an FDIC-insured bank account can provide you with financial security, easy access to your funds, and help you avoid check cashing fees that can add up. Many accounts offer mobile banking and automated tools to support your savings goals. Splitting up your direct deposit and setting up automated transfers are ways to save without having to think about it.
Seek advice. Engaging in conversations about money is a great way to get feedback, advice, and suggestions on your approach to saving. Whatever your goal, seeking advice can help you learn skills, create a plan that can be adjusted along the way, and get help and support to get there. A great way to start a conversation is to review your budget and savings goals with an expert.
If you’re ready to start a conversation about money, you can find out more about how Chase can help you. www.chase.com/communityteam
This article is brought to you by JPMorgan Chase Bank.