Can Saving Make You Rich?

By: Michael Millington

Making the decision to save can come with a sense of financial freedom. Many people who live paycheck-to-paycheck or who struggle with debt might not see how saving can be possible. The reason for this mentality may reside in preconceived notions about saving. People might believe they need to save a certain amount of money in order to successfully make strides. Saving always begins with the first dollar, and it never gets started without making the decision to start. But can saving money make you rich, and if so, how?

 

Build a Saving Habit

The key to saving on a regular basis is to begin the habit itself. Once you have the foundation, keeping up the saving trend may seem like second nature to you. The main focus is to get started. The sooner you begin to save the sooner you’ll have a small fortune to yourself. Making the commitment begins with the knowledge that it is possible. Once you believe in your ability to save money, you’ll find that there is nothing stopping you from doing so.

Begin with small deposits on a regular basis. Set a schedule for making savings deposits so you’ll always have a steady flow of money coming into your savings account. Think of it as paying yourself for the future. The more you invest in your future finances, the more money you’ll have to use later on in your life. Making saving a top priority can have a profound effect on how you view money and what you spend it on.

If you harbor fears that your saving amount is less than what it should be, don’t let it stop you from saving. Even if you start with a small amount of funds for your savings, building the habit is more important than how much you begin to save. Once you begin to save money, the amount will fluctuate as your financial situation changes. Focusing on saving a certain percentage instead of a certain amount will help make the process easier to incorporate into your budget.

 

Account for All of Your Money

One thing that people tend to overlook when budgeting their expenses is exactly how much income they have. Being able to keep track of all of your means of income can be as tough as figuring out how much debt you have at any one time. If you have multiple methods of income, make sure you count them all towards your monthly budget. Main income (from a day job), any side income (like a part-time job, freelance job), and any extra income you receive (from any other sources).

Accounting for all of your income has the benefit of accurate budgeting. When you budget correctly, you’ll be able to see where your savings will come from. Be certain to keep your list as accurate as you can, accounting for any new forms of income. This includes legal rulings in your favor, tax returns, lotto winnings and other types of income that are uncommon. This is why making your budget at the beginning of the month is much more beneficial than doing so at any other time.

Only after you fully assess your monthly income should you apply your expenses to your budget. Making sure your necessary expenses get handled through your budget is essential to helping you save money. One of the problems that can arise in trying to save is debt. Those with debt find it hard to save anything before they make sure their debt is completely eliminated. Even if you do harbor some debt, you might still be able to save your money while paying what you owe. Just make sure you’re able to budget it in with the rest of your expenses.

 

Advanced Saving

Once you’ve started a habit of saving, you’ll find that the following months will see an increase in your willingness to store your excess funds. Creating a saving mindset takes a bit of time and dedication, but once you save money for a while it will become second nature. When people begin a habit, it becomes hard for them to stop or even change course. However, one thing that is easy to do is finding new ways to expand on your savings.

A great way to start to maximize your saving potential is to upgrade your savings account. The type of savings account you have can go a long way towards maintaining and growing your total savings. Normal savings accounts can be changed to reflect what you need to have happen with your money. Many banks offer savings accounts like CDs or Money Market Accounts for saving purposes. These accounts generally have attributes that promote saving, such as high interest returns and limited withdrawals and transfers. (You can see the different types of savings accounts here, courtesy of moneychoice.org)

Taking your ability to save a step further, you could invest your saved money to yield a higher return in a shorter period of time. While this can cause your savings to grow exponentially, it is also a risky move to make with your money. In this method you could potentially lose money if you make poor investment choices. Seeking investment counseling might be the best way to educate yourself on such a practice if you choose to invest.

 

While getting rich is plausible for anyone who puts their mind to it, debt can always deter even the most dedicated saver. Debt always forces you to focus on it before you can focus on anything else. If you find that debt is hindering you from achieving your financial goals, consider contacting Guardian Debt Relief and see how debt relief can help you. Our debt relief specialists are prepared to work with your unique situation and find a solution. With a no obligation, free consultation available with your first call you have everything to gain and nothing to lose. Don’t let debt get in the way of your future financial plans. Take the first step and contact Guardian Debt Relief today.