“Saving” is a word that comes from Arab “hurr” that means “free”. The word was used to describe the freedom that was given to a slave or a prisoner or to free someone from something.
Are you aware that debt is a form of imprisonment or slavery? As a matter of fact, it is just like that. That is why you should organize your financial life and pay your debts off, whenever possible, to free yourself from them. That way you can start saving for a rainy day or any other life goals.
In many households monthly expenses are greater than the income and there is no money left to save. On the contrary, they have the need to ask for loans and of acquiring debt to cover family needs. However, you can manage your finances and aim to save a monthly percentage.
Analyze which are the priorities and the expenses that are necessary, eliminate those that are not and have this money at your disposal to save each month.
Premier Consumer Credit Counseling has designed some calculators so that you can plan your financial life. We encourage you get to know our savings calculators and find out how much you can save.
When you start to save, keep in mind that it is not convenient to do so through money boxes, safe boxes because in time money loses its value. It is not the same for a person to have $1,000.00 dollars today, than to have had it 50 years ago.
The recommendation is to save in a bank that offers a good interest rate, that way you will receive more money than what you have. Another recommendation is to invest the saved money. You can get more information on the matter of the protected investments in the website of the Government of the United States.
There are many ways to invest your money, but you must be aware that there is a risk. What is important is to find the way that money does not lose its value in time. We all remember the real state crisis from 2008, when many consumers bought houses that they could not afford, to try to flip them and resell them at higher value, and the real state market crashed down. Now, on the other hand, once the market is down it may make perfect sense to buy a property.
Read our Article on How To Retire Abroad with $150,000.
It is important to save from an early age and to have a clear saving´s objective, meaning that you know in what you are going to spend the money that you will save. Although this money is destined for something specific, you could also use it in times of crisis or financial difficulties.
If you are head of a household, teach your kids to save so that they start doing so from an early age and teach them the importance of an excellent financial organization at home.