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Back to the Basics | Saving

Back to the Basics | Saving

May 04, 2023

This is the third week of Back to the Basics. Budgeting was covered in last week's blog, and debt management in the first week; we hope the information was helpful. Saving, investing, life insurance, and retirement planning are the topics we still need to cover. You may not realize this, but these subjects are all connected. If you are in debt, you can't save, and a budget helps you control your debt so you can save. If you save, you have the funds to purchase life insurance and have an emergency fund. You can start funding your retirement by investing in a company-sponsored retirement plan (401k) or with a Dixon Financial Group, LLC LPL Financial advisor.

Now that you have listed your debt and decided on the method you will use to pay down your debt, and you have adhered to your budget to free up the funds to pay off your debt, you are now ready to start saving. Read on to learn more.

Saving money is one of the most important things you can do to ensure financial security. By setting aside money each month, you can build up a cushion to help you cover unexpected expenses, reach your financial goals, and have a more secure retirement.

There are many different ways to save money, and the best approach for you will depend on your individual circumstances. However, there are some general tips that can help you get started:

  • Create a budget. (Hopefully, you have already done this) This is the foundation of any sound financial plan. Track your income and expenses for a month or two to see where your money is going. Then, make a budget that allocates a certain amount of money to save each month.
  • Pay yourself first. Before paying your bills or buying anything else, put a certain amount into your savings account. This is a great way to ensure you're always saving, even with a tight budget.
  • Automate your savings. Set up automatic transfers from your checking account to your savings account so you don't have to think about it. This is a great way to ensure you're saving money without even lifting a finger.
  • Set savings goals. Having a specific plan in mind will help you stay motivated to save. You can save up for a down payment on a house, a new car, or your child's education. Whatever your goal is, make sure it's specific and achievable.
  • Find ways to cut back on your expenses. There are areas in your budget where you can cut back without too much pain. You could cook at home more often instead of eating out or cancel some of your subscription services. Every little bit helps.
  • Invest your savings. Once you have a solid emergency fund (3 to 6 months of income), you can start investing your savings for the future. This is a great way to grow your money over time.

Saving money can be challenging, but it's important to remember that even small amounts saved each month can add up over time. By following these tips, you can start working towards building a brighter financial future for yourself and your family.

The Dixon Financial Group Team is here to help; we welcome your questions.

*We hope the topics of debt management, budgeting, and saving have been helpful; next week, we will discuss the importance of insurance and how it can be used to manage risk for you, your family, and your assets.

David S. Dixon, CFP®

Jacob S. Bierstedt, CFP®, ChFC®

#DixonFinancialGroupLV  #investments #LPLfinancialadvisor #saving #retirementplanning