A great financial planner in Santa Rosa can do a lot to help anyone reach their financial goals – but it all starts from a foundation of savings. If you are going to plan ahead for the future, and have a safety net in case of emergency, that means finding ways to set money aside for a rainy day.
We know that saving can be difficult, but a life without financial savings will be one full of stress, worry, and -all too often- tragedy. However, it’s never too late to start! Adopt smart savings strategies now and reap the benefits in the future.
How to Save Money for The Future
The most basic question we’re often asked is “How much money should I save per month?” While this will vary depending on your specific goals, the ballpark answer is “at least twenty percent of your pay.” Now, this includes any retirement plans you might already be part of, such as your social security withholdings, so it may not mean 20% of your take-home.
Ideally, around 10-15% of your pay should go to retirement, and the other 5-10% should be used to create an emergency slush fund which you can access quickly in times of crisis.
Of course, everyone would like to have enough income to save comfortably. The problem is when you’re living month-to-month, with expenses roughly equal to your income. In these cases, the answer is almost always to look for ways to cut your costs. A good financial planner in Santa Rosa can work with you directly to find areas to cut costs, but here are some good starting places:
- Subscription services. The world is already full of things to do. Do you really need to be spending $50, $100, or even more on cable TV, Netflix, Amazon, or any other subscription-based services you receive?
- Buy less-expensive consumable goods. In areas such as clothing and food, a small cut in quality can often bring substantial savings, such as buying “store brand” items rather than name brands.
- Delay replacing repairable items. Too often, we throw away items and devices which could be repaired. Spend some time on YouTube and learn how to fix them.
Finally, don’t forget that the Internet offers a wealth of freelancing opportunities. Picking up extra money always helps!
Need more help? Contact Montgomery Taylor – a superior financial planner in Santa Rosa.