As per recent reports by Corporation for Enterprise Development, half of the households in the United States of America are poor when it comes to their liquid assets, which means that they have less than 3 months’ worth savings in their bank. And you will be rather surprised to know that 25% of those who are considered as ‘liquid asset poor’ are among the middle-class people who earn about $56,113 to $91,357 in a year. Even more surprising is that among them 89% are employed. Well, the fact is that modern life has become too complicated and there are too many responsibilities than out previous generations. However, amongst all other tasks, you have to save money to secure your future. Have a look at some ways in which you can save money and break the cycle of staying indebted.
- Downsize the number of possessions: Are you someone who is trying to keep up with the ups and downs of life? If yes, it is high time that you lighten the load. The bare truth is that there are many belongings that bring you joy but they might become the reason for stress as they need to be maintained or may come with additional financial costs. So, figure out what you can sell and take the required steps to do so. This will not only simplify your life but also help you save some cash
- Cut down on unnecessary expenditures: There are monthly bills that aren’t negotiable, including bills like insurance, rent payments, mortgage and utilities. If you really want to simplify the bills, make sure you cancel some services that you don’t think are necessary. Gym memberships, cable television, cellphone contracts are some among them. This could free up cash and help you use it in the other necessary expenses.
- Pay down your high interest debt: If you’re like most people who are indebted to different credit card companies, you should first ensure that the monthly debt payments need to be sorted out first. If you don’t keep maintaining the monthly payments, the interest rates will keep increasing and you will end up paying more than what you owed. Make a commitment to pay down your debt on time.
- Automate your savings account: If you think that you will soon fall off the savings bandwagon, the best thing you can do is to automate your savings account. Set a fixed date on which a fixed amount will be debited from your account and transferred to your savings account. However make sure the amount is debited from your current account only when you have already received your salary.
It’s true that nowadays life is too burdened with financial woes but there are solutions to all problems. Learn the ways in which you can save money so that you can secure your future. Open a high-yield savings account so that you can get best returns from your savings and use it for other purpose.