Four tips to take control of your savings
April 2025
Every budget begins with your net income. (courtesy iStock)
story courtesy of Family Features
Saving money is an essential financial practice that nearly everyone aims to achieve, especially today. However, it is often easier in theory than in practice. If you feel anxious or worried about your financial situation and your ability to save, remember that you’re not alone.
More than one-third of the general U.S. population feels anxious about their current financial situation. Further, many households across the country do not feel in control of their finances, with 11% reporting they’ve “forfeited contributions to their retirement accounts,” potentially impacting themselves later in life. These figures from the World Financial Group paint a concerning picture of how people across the country feel about their current and future finances.
CONSIDER THESE SAVINGS TIPS:
Create a Budget — Every budget begins with your net income. Ensure you subtract deductions like taxes, workplace benefits, insurance or retirement plan contributions. This way, you know exactly how much money is available each month. Next, calculate all fixed expenses, including regular monthly payments or bills. These include utilities, cellphone bills, rent or mortgage, vehicle payments, and anything that remains static month-to-month. Subtract those fixed expenses from your net income to create your monthly budget.
Track Your Expenses — Once your budget is in place, it’s much easier to keep track of expenses that vary month-to-month, like gas, groceries and entertainment costs, such as dining out, seeing a movie or going to a sporting event. Tracking minor expenses may seem tedious initially, but logging each purchase can help set a foundation for financial accountability.
Set Savings Goals — Tracking your expenses for a few months should give you a good idea of how realistic it is to save a set amount of money each month. Before you set a goal, or if you’re struggling to consistently reach savings goals, take a financial literacy quiz to test your knowledge and then consider meeting with a financial services expert.
Pay Down Debts — Debt is one of the largest barricades people face when trying to save more money. If you feel debts are stopping you from reaching your financial goals, know it is possible to pay off debt while saving simultaneously. Make sure to prioritize debts with higher interest rates that lead to compounding costs in the future and then, if possible, make more than the minimum payment to pay them off faster. It may limit you in the short-term but can equate to more financial freedom — and the ability to save more — in the future.