Finding money to put into savings can seem difficult, but there are some strategies that can make it easier. Start by asking yourself these questions provided by the FDIC.
Do I have savings goals? Knowing how much you want to save and why can help you stick to a plan.
How can I spend less? Review how much you spent in the last month and consider ways to cut back. Also try to pay less in interest. For example, if you have multiple loans, pay off the ones with the highest interest rates first.
Do I have an emergency savings fund? You have at least six months of living expenses in a federally insured product, such as a savings account or a certificate of deposit (CD) to help you withstand a major reduction in income, such as from a job loss, or to pay for an unexpected home or car repair.
Am I saving money on a regular basis? Automatic transfers into savings on a set schedule can help you save money before you spend it.
How much investment risk am I willing to take? Investments such as stocks, bonds and mutual funds can produce high returns over many years, but you could also lose some or all of that money. (Remember, nondeposit investments are not insured by the FDIC against loss.)
Am I saving enough for retirement? For many, the answer is “no” even when they think it is “yes.” Options to save include workplace retirement plans and FDIC-insured Individual Retirement Accounts (IRAs.)