Many financial experts say the earlier we save and invest the better.
Whether you’re a young millennial who’s graduating from college, a homeowner who wants off your mortgage or a senior citizen who receives social security, these six tips can help you build savings, reduce debt, boost income and invest smartly, according to bankrate.com.
These six financial tips are for all ages to follow. Implementing these tips might help you decrease some of your financial burdens by teaching you to budget smartly.
6 savings and investment tips to follow, according to bankrate.com:
Pay yourself first
Instead of setting aside whatever’s left over, dedicate a portion of your monthly income to your savings.
Save for emergencies
Life always takes its twist and turns, so you never know when you or a loved one will be in need.
If your household has two incomes, set aside at least three months of required expenses for emergencies. If you’re a one-income household, try and double that to six months, according to bankrate.com.
Spend less; save more
Whenever we earn extra money, we often use that money to splurge. But putting that extra money in savings won’t hurt.
Also, think about cutting back on spending. Don’t carry your savings in your pocket or wallet, but instead transfer those funds to a savings account that is difficult for you to reach.
Create ways to make more money
Working multiple jobs can be stressful, but adding a job that allows you to make some extra cash and doesn’t take too much of your time can help you save and invest more.
Also, selling things you don’t need—such as shoes, clothes, car and jewelry– can generate cash for savings.
Take baby-step your way to saving
While saving can be rewarding, you have to find what saving strategy works best for you.
If you can’t save at least $500 a month, start by saving $100 a month and work your way up as your income increases.
Saving a penny is better than not saving at all.
Allocate your assets
Whether you are new to investing or an experienced investor, be vigilant about investments with a high-flying risk-reward profile, according to bankrate.com.
Bonus tip: Younger people should invest more aggressively and older people should invest more conservatively, bankrate.com reports.
This report contains information from bankrate.com.