There’s Still Time (and Money) to Start Your Savings Account

There’s Still Time (and Money) to Start Your Savings Account

There's Still Time (and Money) to Start Your Savings Account

If you often worry that you're not saving enough, you're not alone. The average American saves around 5 percent of their income, but that statistic can be misleading. Bankrate.com says that a third of people under the age of 50 and more than a quarter of those between 50-54 have no savings.

Ideally, people should be saving 15% of their income for their short-term emergency spending (things such as major home repairs, medical bills or unexpected unemployment) and retirement plans.

If you're not a saver, but want to start, there's good news: it's easy!

First, you'll want to set up a budget to identify how you earn and spend your money. When you write down your expenses, be sure to categorize them. For example, student loans, mortgages and insurance premiums would go under a fixed expense line; some essentials – such as food, clothing and utilities – may adjust depending on the season. You may also set aside a small percentage for discretionary spending – the impulse buys you want but really don't need.
As you work on your budget, you will likely find areas where you can cut down on spending. If your cable bill is running high, you can opt for a lower cost tier (or perhaps cut the cord entirely). If you're spending too much on groceries, look for coupons for your favorite brands. If you carry high credit card balances, you could be throwing money away on interest payments. Pay down those high-interest bills first, and call your provider and negotiate a lower rate or go to Bankrate.com to find a lower interest card. As you trim those variable costs, you can then earmark those funds toward your savings accounts.
Keep in mind that budgets aren't just one time documents. Your circumstances can change in a moment's notice – either for the good or the bad. As your life changes, your budget needs to change as well.

This information is not to be used as investment advice, but for informational purposes only. Republic Bank & Trust Company prohibits the dissemination, distribution or copying of this document without the Bank's prior written consent. Please consult your financial or tax advisor for further information. Member FDIC.