It’s great that you’re taking meaningful steps towards achieving financial stability! One of the most important things you can do to reach your financial goals is to prioritize saving in your budget. By doing so, you’ll build a safety net for unexpected expenses and create a cushion for your future financial security. Your dedication to this goal is commendable and will pay off in the long run. Keep up the great work!
Why You Need to Budget for Some Savings
When you’re making a budget, remember that life is full of surprises. Like Forrest Gump said, “Life is like a box of chocolates. You never know what you’re going to get.” Hopefully, you can presume what expenses you will have, and your budget will cover all those expenses. If so, that’s great! Remember, though, that life is unexpected, which means spending deviates a little from our plan. This is why we need to account for those deviations. It might not seem as important when you have an unexpected birthday dinner for a close friend, but what about when that deviation is significant? Let’s say your son comes home with a permission slip for a school trip, one week in El Salvador with his favorite teacher, and all his friends are going. You need to write a check for $600, and he can have a trip of a lifetime, or a pebble hits your windshield, and your insurance deductible is $500, now that $300 windshield comes out of your wallet. Good or bad, life happens, so we need to set up a savings account and budget for it every paycheck.
How I Save Because I Am No Fortune Teller
Some people try to put a specific dollar amount away every month. For some whose income varies, putting away a percentage of their income might be easier. Some people put away 20 percent, others put away 30 percent, whatever you can manage. Now, where to put your savings? If you don’t already have one, open a savings account. This is a good placeholder for your money. This way, you can separate it from the money that you have budgeted to spend. Your savings account is a good place to save for future goals and unexpected expenses, vacations, shopping sprees, putting a down payment on a home, or that windshield. Always keep some of your money in a savings account so that money is immediately available if you need it.
You can invest some of this money, start a retirement fund, or invest in the stock market. Find one that looks desirable to you and start saving for your future because getting old is a great example of life happening. Some retirement accounts to look into are an IRA, Roth IRA, or a pension through your company.
Put a little money into the stock market. This can be a fun way to invest your money. Pick something you trust, a company you use, and believe will keep flourishing and making money. You don’t have to put the whole 30% there, but take 30% of your savings and invest it. The best part about this is you can turn that money into more money. Who doesn’t like the sound of that? Watching the money you invest grow is super fun. If you are losing money, you can always move that money around and never lose more than you put in.
Savings in your budget are necessary because no one knows what the future may hold. If you are not already saving or you read this, and you might not be saving enough, sit down to do some money management, and next time you get a paycheck, put something away for the unexpected.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
