Saving money is a task that everyone should take seriously, but it can seem overwhelming when bills continue to pile up every month. With savings rates low and interest rates high, is it really worth it to set aside money specifically for the purpose of saving it? On the surface, it may not seem so, but this kind of investment can pay off big in the long run.
For one thing, when you start off every month knowing that a certain amount will go into savings, before too long, you won’t even think about that money, especially if you have it automatically transferred out of your checking account. You will learn to adjust to a slightly smaller amount of money every month. This will help you to be more responsible with money overall, and if you can set aside $100 a month, you will have $1200 plus interest at the end of the year.
If you follow this strategy for saving money, next year, you should go ahead and make it $150 or $200 a month. You’ll be used to the first hundred, so you just need to get used to the extra. That way, you can as much as double your savings the next year. No matter how many expenses come up in a given month, you should strive to keep up with this savings plan.
Of course, there are higher yield investments that you can try if you don’t mind the possibility of losing some of your money. Stocks are a popular option, and you can purchase some stocks even if you have only $100 to invest. However, you should do your research ahead of time and try to get some advice on how to proceed, especially if you know someone who is financially astute and can offer some tips for free.
Saving the cash that you earn on a regular basis is an investment in your future. You never know when your fortunes may take a turn for the worse, leaving you on the brink of financial ruin. The larger the cushion you have in case of such an emergency, the better. It’s even better if you don’t need it and can continue to save it for retirement so that you can live in as comfortable a manner as possible. It’s never too late to start saving, so why not get started with your first $100 now?