One of the most important money management strategies is to save money. By saving money you are putting yourself into a good position if life changing events suddenly strike home. Every one can find money to save and banks provide a good way to save. Then can help those savings to continue to grow.
Saving money should be high on your priority list and if you take the approach that you must pay your bill first. Think of saving money as making a payment to your self. If you pay your self each month just as you would any other bill, you will find that saving money becomes much easier. By paying yourself each month just as you would any other bill, then you will be helping to maintain a good money management strategy. Having money in the bank also helps when you go to purchase a car or a home. This gives you money for a down payment. Many lenders look at your down payment and will allow your credit score to slide a bit if you don’t have that excellent credit score.
Getting into a habit of saving money each month is more important than the amount of money you save. For example, if you save $10 each and every month, you are better off then trying to save $25 when you feel that you have the money to save. Start by saving a little each month, then if you find that you can do a bit more, add to your savings each month.
There are many reasons why you should start saving money and keep saving money.
1. Having money in a savings account will help you plan your short term and long term financial goals.
2. Life changing events can happen at anytime and having money put away will protect you from financial failure in case of these emergencies.
3. If you have children, then money in savings can help you with any educational costs such as college or tech school.
4. Having money set aside for emergencies can protect you from having to file Personal Bankruptcy. Bankruptcy can complete ruin families and their financial plans. Bankruptcy is not only a financial problem but it can cause mental issues such as depression. These types of problems often lead to additional life changing events.
So start on the road to a better financial situation on payday. Take a small amount of your check and begin to better your financial status. If you have money saved to help with down payments and such, you can take your time when you need to do credit repair.