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We understand it's hard to earn much interest on your savings these days although it may become a bit easier since the Federal Reserve Bank has increased the base interest rate. However, you need to do as much as you can to maximize your savings. Take a few minutes to compare the interest rates offered by several of your local banks and credit unions. Be sure to also check out the interest rates offered by reputable online banks such as Ally Bank, Synchrony and Barclays. Both Synchrony and Barclays are currently offering 1.05% interest on their virtual bank accounts, which is probably better than you will be able to do with a local credit union or bank. Both are FDIC insured and charge no fees if you keep a balance of at least $30.
If you're willing to take a bit more of a risk you might contact an online brokerage and invest in an index fund, which will be relatively safe and give you a better return than traditional savings accounts. You can get a good idea as to which funds you might want to invest in on websites like Magnifymymoney.com.
Cut down on your spending
By far the easiest of the eight financial tips for achieving your savings goal is by cutting down on your spending. Once you've analyzed it as suggested earlier in this article you should be able to find ways where you can cut down on things. The categories where most people can reduce their budgets is in food, entertainment, and clothing. But, of course, you may find areas beyond this where you could cut costs and use the money to fund your savings goal.
Last but certainly not least, try to figure out a way to increase your earnings. There is nothing wrong with arranging a meeting with your boss where you ask questions such as, “What could I do to earn more? Do I need to acquire a new skill, take some classes or take on more work?” Try this and you might be surprised to learn that your boss would be happy to help you develop a strategy for increasing your earnings. According to the data revealed by BLS.gov, 4.9% of workers are holding multiple jobs. If you need to earn more, this is something that you can do to make your finances more secure.
Stay the course
Whatever is your goal and whatever plan you create to attain it the important thing is to stick to the course you have started. Never forget the old adage that big oak trees from little acorns grow. Just saving $25 or $30 a week for 35 or 40 years will end up funding a very nice retirement – if you do that every week without fail. Working to build a nice retirement is just not that complicated