Saving money and stowing it away can be tough, but it is an important part of achieving financial stability. You would be surprised at the number of individuals that owe more on their credit cards than they actually have in savings. Trying to save money, with bad credit can even be more challenging, because you are already in a mountain of debt, but it is possible. Unexpected things can always happen with the drop of a hat and having money in a savings account can help you stay calm and collected, when these situations arise.
However, you don’t just have to save for the emergencies and children’s education. You can also save for your dream vacation or even that new car you have had your eye. Whatever your goals are you can achieve them even with bad credit.
Using An Automation Process
Most people with low credit scores have trouble saving money, because they simply take the wrong approach. Once they pay their bills, student loans, and rent, it may seem like there is nothing left to save. The key objective is to put your savings first. It’s a simple process and it can go a long way to starting a savings account. The first thing you need to do is decide how much money you want to save. Experts always recommend around 10 percent of your income, but this can seem a bit daunting to first-timers. If you want to start with 1 percent you can.
Each month you can automatically have 1 percent of your income withdrawn out of your checking account and placed in a savings account. After this is setup you can simply just forget about it and let your savings continue to grow.
Creating A Value Based Budget
Another great thing to do is actually sit down and see where your money is going each month. You might find that you have money going to things that you aren’t using that much or really don’t need. For instance, you might be spending $50 dollars each month on an additional TV package, even though you rarely spend more than a few hours at home each night.
You can also create a bigger budget by learning to shop smarter. Take a good hard look the next time you are at the grocery store. You would be surprised at all the store brand products that are available, based on name brand products. These store brand products are much less expansive than their counterparts and there is a good chance that you would barely notice the difference in taste.
Borrowing Money The Smart Way
As mentioned above, life can be unexpected and sometimes things are going to happen that you will not be prepared for. If your car needs repairs, you should try borrowing the money to pay the repair costs rather than withdrawing the money from your savings account. Of course, borrowing money with bad credit can be a challenge. However, with payday loans direct lenders, it doesn’t have to be. These lenders give everyone a fair shake regardless of their credit score. There will be a fee for using the service, but you will find that it will be much cheaper than paying back those high interest rates that the banks charge.
Kimmy Burgess says
It is a nice and informative article. If you want to save money and have a tight budget, you must prioritize things. We should know how to differentiate between needs and wants. Here are some ways to save money:
1. Pay your credit card bills on time
2. Cook at home more
3. Use public transportation
4. Make your own coffee
5. Use coupons
6. Create a budget
7. Lower your utilities bill