If you are reading this guide, you are a person who is willing to put in the time and effort in directing your dollars. As a result, you will also be an individual who makes the highest level of headway towards your financial goals. You are to be commended! Organizing your money is the single most important step to achieving high levels of financial success. While it does take some time and effort in putting a monetary system in place, it will be well worth it in the long run. Continue reading to learn how to save and streamline your finances – once and for all!

Learning to Save Money

Step 1: Evaluate All of the Strategies Available for Managing Your Money

The first step is to conduct a little research on the money management strategies that will help you in saving the money that you accumulate.

First, you should set yourself up with an account at a bank that is insured by the FDIC. This will be the foundation of your overall success as all of your money should be directed and kept within the account.

The FDIC offers coverage of $250,000 to each depositor in a covered account. Be sure to research banks prior to making a decision. You will want to experience as many perks as possible with your new account. We here at Somerville Bank, for example, offer online banking, mobile bank, ATM usage, and more. When you commit to an account, ensure that it offers expansive solutions for your financial affairs.

Once you have a bank account open in your name, it is time to open up a savings account.

Once this is opened, you should consider using an automated feature that will automatically take money from your checking account and place it in the savings account. You may choose to add the amount from each pay period from employment, once a week, or even once a month – the choice is yours! Just remember, the goal of a savings account is to save. Therefore, make a personal commitment that you will not tap into the savings account unless it is imperative to do so.

Before long, you will see those dollars add up!

Not only will you be able to successfully save for the future, but you will also be accumulating a nice emergency fund that may come in handy one day! When signing up for a checking and savings account, be sure to choose those that pay interest so that your money will grow!

Step 2: Utilize Tools That Make Financial Transactions Easy and Trackable

The next step to organizing your finances to the point where you may streamline your finances is to utilize tools that are designed to make your financial transactions easy and trackable. The following outlines those that will be most beneficial to your financial success:

  1. Direct Deposit – If you have a job, receive benefits from Social Security, or a pension, you should have the money direct deposited into your checking account. Not only is this the most secure way to receive your funds, it is the safest means of handling money. Many banks may waive fees and minimum balance requirements if you use direct deposit – which can save you money. Additionally, this helps you avoid paying fees for cashing your check.
  2. Online Banking – This tool allows you to review all of the deposits and withdrawals associated with your bank account. You may also deposit checks in an electronic manner and move funds to your savings account. Most banks that offer online banking will also offer mobile banking so that you may do much the same as online banking with your smartphone.
  3. Bill Pay – Look into the perks of your bank account. A standard service offered by most is bill pay. This is where you receive bills electronically and you sign up with those on the bank website. Once signed up, you may manually pay your bills each month or have them automatically taken from your account. This will ensure that you never miss a payment! Be careful, though, that you track these withdrawals so that you do not accidentally overdraw the account.

Step 3: Get a Safe Deposit Box and Use it!

Banks offer safe deposit boxes. There is a small fee for these, but the benefits are numerous. Basically, you will gather all of your important documents and valuables and place those within this box. That way, if a natural disaster occurs or you are in a position where you have to leave your home very quickly, these items are secured in the safe deposit box at the bank.

While it is true that you could use a safe in the home, many issues could result from that choice. The safe may become damaged or stolen, for example.

If everything is stored at your bank, you have no need to worry about your documents and valuables.

Step 4: Create a Budget and Stick to it

Next, you should create a budget. You should not budget penny-for-penny. Take your bills and put it on your budget. Then, include other expenses.

You should also ensure that you outline how much you want to save each month. In the savings, you should include funds specifically for an emergency fund so that you are not caught off guard if something comes up. The ultimate goal for an emergency fund should be at least a year’s income.

Step 5: Speak to a Financial Advisor

Finally, when saving and streamlining your finances, you should speak with a financial advisor. While there are those that offer their services independently, most banks offer this service. Simply contact the financial institution and make an inquiry.

Contact Us

If you are ready to organize your money so that you may save and streamline your finances, we here at Somerville Bank may assist you. You may contact us by phone or by visiting one of our money locations. Simply click on the following link for our contact information now: https://somervillebank.net/locations/