How to save

Why to save

Saving cash seems pointless to some people. It could be hard to see how saving will help your future. Saving money can seem really hard sometimes, especially whenever you don't know what to save for. You’ll learn how to conserve your money.

The first helpful tip

Rather than saving, you should be investing your cash. The interest rate on savings accounts will make you actually lose value on it because of cash depreciation value. Because money's worth goes down over the years, it is important to get a good interest rate. Even an interest rate of six of seven percent will help you quite a bit if you wait long enough.

My second tip

Saving for yourself is the first thing. When you are flying in an airplane, you are told to secure your own mask before securing anyone around you. If you aren’t safe then you will be unable to help others. This is the same when you are saving money. It is hard to help someone else whenever you aren't secure yourself. Start yourself with an emergency fun that lasts a couple of weeks. Afterwards, you should try to save more. The goal is to become able to have six months of savings in case something happens such as unemployment. Once you’ve this taken care of, make sure you’ve a retirement fund going. It is very important to secure your future and your child's future. Once you’ve finished that you should work on your kid's college funds. When saving cash for your child's education it is better to get a higher return. Without having high interest rates it will be impossible for money to grow quickly for your kids.

My third tip

Your children should be a part of this. Your kids will learn good savings habits by contributing their own cash as well. I know that some parents would have their children conserve fifty percent of their paychecks for savings. Easily will they learn to be disciplined. Have your children learn a good work ethic and learn how to save for their own things. Kids should learn how to save their own money for anything they want to do with friends. Your children will really value the skill of saving on their own.

Tip number four

You have to be patient because your cash won't grow immediately. Investment accounts will increase your cash only after thirty or forty years. Plan for your retirement this way. For other money being saved, this might not be the best method but still plan in advance to be patient with the cash.