*First National Community Bank’s blog does not constitute legal, tax, accounting, investment or other professional advice. Recipients should consult their professional advisors for advice.
It’s the new year and the perfect time to start out the year right with a solid plan to build your savings in 2023. While each year begins with new hope and a list of New Year’s resolutions, one’s financial future often doesn’t make it to the top of the resolution list. It is especially important to consider building one’s savings coming out of the holiday season where many of us have overspent our holiday budgets and have made many an impulse purchase. As we know, unplanned expenses and emergencies are common life events and not having proper savings in place for those rainy days can be detrimental to one’s budget and finances. People looking to build a successful savings habit often run up against these very human challenges. To help you turn your resolutions into successful savings habits in the new year, First National Community Bank has outlined the top 3 ways to build your savings.
Tip #1: Create A Budget
Setting yourself up for savings success is as simple as creating a budget. Think of it as a road map that shows exactly where you are in terms of monthly income and expenses. It will show you how much money is available to save each month and if you’re on track. A budget also helps you monitor and track your financial progress. Perhaps the most important part of your budget is updating and monitoring it regularly to ensure it remains on track.
You can create your budget in the format that works best for you, whether it be a spreadsheet or kept in a notebook or using an app on your phone. As long as you are diligent about tracking your expenses, you will be on your way to building your savings.
Tip #2: Make a Savings Plan
Once you have created a budget, you will now need to devise your strategy for saving money. You can start simple with setting aside $20 a week, which would lead to a savings of $1,000 at the end of the year. You should also set realistic expectations of how much you would like to save and the timeframe in which you would like to have accumulated the savings.
It is important to note that the most successful savers automate their monthly deposits. Decide how much you can put into savings and set yourself up with an automated transfer. Another option is to direct deposit a portion of your paycheck into savings every payday.
Tip #3: Build An Emergency Fund First
Your savings plan should include building an emergency savings fund for unexpected expenses. The general rule of thumb is to set aside three to six months’ worth of living expenses in your emergency fund. If that isn’t realistic for your situation, you can start with what you can so you are prepared if something unexpected happens.
We offer a full range of financial products to help you build your savings, including a Personal Savings Accounts. Building your savings is an important component to ensuring a sound financial future. As your locally owned community bank of choice, the success of your financial future is top of mind. We offer Personal Checking Accounts, Money Market, Personal Savings Accounts, CDs, IRAs, Business Loans, Treasury Management Services, Mortgages, Personal Loans of all shapes and sizes and much more! To learn more about First National Community Bank’s financial solutions, contact us here.
Member FDIC. Equal Housing Lender.