Personal savings strategies | Business & Finance homework help
In order to develop a personal and household savings plan, I would focus on using four key savings strategies. The first strategy is setting up an emergency fund which should comprise of 3-6 months worth of living expenses so that I am well prepared in case of any unplanned financial circumstances. Secondly, I would also set aside money each month for long-term goals such as retirement or college tuition. This could include creating an IRA account or investing in stocks/mutual funds.
Thirdly, automating my bills can help ensure that payments are made regularly and on time thereby reducing the risk of incurring late fees. Lastly, actively tracking my expenses will assist in making better spending decisions by highlighting where adjustments can be made to free up more money for saving purposes. By incorporating these strategies into my overall budgeting plan I will be able to make progress towards achieving both short and long term financial goals.