Saving money is one of the most commonly discussed topics and you have probably been told a thousand ways to do it. Now that you have set up a savings account the question becomes “How much exactly should I be saving?”. This is where the lines get a bit blurred as answers range from “half of every paycheck” to “$100 a week”. To help you figure out how to properly save for your future we have set up a series of blog posts detailing how to save daily, weekly, monthly, yearly, and over your lifetime.
Now that you have learned how to save on a daily and weekly basis, we shift our focus to a more long-term plan. This section will specifically focus on opening an IRA and limiting recurring monthly charges.
Here at Allegro we emphasize how you can save a lot money and build good credit by getting our pre-paid credit card instead of using a bank, so you may be asking “why are you promoting opening an account tied to the bank?”. While we do promote using our service over banks, our overall objective is to save you as much money as possible and educate you on ways to save, which does include using all available services at your disposal. While banks do charge hidden fees for many of their accounts, opening an Individual Retirement Account (IRA) is normally a safe way to save for the future.
There are several types of IRA’s as well as various requirements depending on the service you use, so it is up to you to identify the right one for you, although all are normally safe ways to save money. The way you can use an IRA on a month to month basis is by depositing a proportion of excess or unspent money into the account at the end of each month and let it sit for an extended period of time. Once you have let it sit for a few years without checking on the balance you can be pleasantly surprised by how much your savings have grown.
Another monthly savings habit to get into is identify all your recurring charges you get and limiting them down to the bare necessities. The first step is to go through the past few months of expenses to identify what recurring fees you are being charged for. Have a gym membership you got in January that you no longer use? Subscribed to a magazine you no longer read? After taking into consideration the cancellation fees, cancel the services you no longer use. You may be surprised about how many monthly charges you accumulated without knowing it and how much you save in the long run.
Now that you have started saving on a longer-term basis, we will extend our focus to yearly savings goals in next week’s blog.