Image Source: Getty Images
Many people plan to secure more money in their savings accounts, but continue to postpone their goals. If you’re holding back on saving because money is tight, you’re not alone. But keep in mind that even small savings can make a big difference and set you up for future spending. Find out how much money you could save if you committed to saving $25 each week for the next year.
Every dollar saved makes a difference
Inflation is rampant, the cost of living is skyrocketing, and when salaries are already stretched thin, saving money can feel impossible. Many people assume they don’t have enough extra money to save. If you keep postponing your savings goal year after year, you’ll have a hard time dealing with emergency expenses that arise.
save: This credit card has one of the longest 0% introductory APR periods.
Learn more: Save while paying off debt with one of these top-rated balance transfer credit cards
Not everyone can reach their massive savings goals, and that’s okay. But starting somewhere is essential. Saving even a few bucks a week is better than not saving at all. Reaching your savings goal will take time, but you’re making good progress.
The Importance of Emergency Funds
An emergency fund is a valuable financial tool. Unfortunately, many Americans don’t have one. You never know when an unexpected vet bill, car repair, or home maintenance job will come your way. Having an emergency fund reduces the stress of dealing with these situations.
Ideally, it’s best to keep at least a few months’ worth of daily expenses in an emergency fund. But even a small emergency fund can help in the event of an unexpected expense. As you work to build your fund, don’t be afraid to start small.
If you struggle to save regularly, automating the process can help. You can set up automatic transfers from your checking account to your savings account. Some prefer weekly savings, while others prefer bi-weekly or monthly savings schedules. do what is best for you. Doing this will disable potential forgetfulness and save you time.
The $25 weekly savings add up to:
So you want to start saving, but don’t have a lot of extra money? If you have $25 of your weekly budget to spare, your savings account balance will grow faster than you think. If he commits to setting aside $25 each week for a year, he will have $1,300 in the bank. That’s a lot of money and much better than saving $0.
Storing excess cash in a savings account also earns interest. Many banks now offer competitive interest rates. If you don’t have a savings account yet, check out our list of the best high yield savings accounts to find the right one for your needs.
Never give up on your financial goals
As the cost of living rises on a daily basis, many of us are feeling even more stressed. But it’s important to stay committed to your personal financial goals. If you have the determination to save more this year, start with small goals and make them happen. Savings of $10, $20, or even $25 a week are impressive.
These savings accounts are FDIC insured and can earn you 13x more than your bank
Many people miss out on guaranteed returns because they are running out of money in big bank savings accounts that are near-interest free.our recommendations best online savings account You can earn more than 13 times the national average savings account rate. click here Revealing our best-in-class picks on our shortlist for the best savings accounts of 2023.
We firmly believe in the Golden Rule. As such, our editorial opinion is ours alone and has never been previously reviewed, approved, or endorsed by any of the advertisers included. It does not mean. Editorial content for The Ascent is separate from editorial content for The Motley Fool and is produced by a separate team of analysts. Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.
