Question
$10.00 W3 Assignment Personal Savings Strategies
- From Business: General-Business , Business: General-Business
- Closed, but you can still post tutorials
- Due on Aug. 08, 2011
- Asked on Aug. 05, 2011 at 10:44:24AM
Q:
Assignment Week 3
Develop a personal and household savings plan. What savings strategies will
you use to improve your financial situation? Explain why you chose each strategy
instead of others that you did not choose. How much will you save each month?
How much interest will you earn and how much will you have saved in 5 years, 10
years, and 20 years?
$10.00
Personal Savings Strategies
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- Posted on Aug. 05, 2011 at 11:17:57AM
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A:
Preview: ... our monthly expenses to see what areas you can cut back on to increase your savings. Areas such as clothing, eating out and entertainment can usually be cut back slightly. Try cutting $20 off each of those areas and, after one month, analyze your spending again to see if you can cut back even more. If you cut $20 from three categories, you will be saving $60 each month or $720 each year.
If you are spending more than you have, you need to carefully look into your spending habits to see what areas can be cut completely and what areas can be dramatically decreased. Ask yourself: "Can I live without it?" If the answer is "yes," cut it out of your budget for next month. Do your best to get your expenses below your income.
5
Decide on the types of savings you want to have. Do you want to save for short-term goals such as buying a car or going on vacation? Or are you looking to save for long-term goals such as buying a new home or saving for retirement? Allocate a certain amount to each of your desired savings goals. The extra amount you have at the end of the month determines how much you can allocate.
6
Set up a savings account if you don't already have one. Your savings account will grow with time and the more you put into your savings account, the more interest you will earn. Consider setting up an automatic transfer to move your allocated savings funds into your savings account every month.
7
Stick to your budget. Practice self-discipline and do not let yourself spend more than the amount you have decided upon in any one category.
What savings strategies will you use to improve your financial situation?
1. Get out of debt Getting out of debt is the most important thing you can do for your financial situation. Instead of paying someone else interest, you can pay yourself and pay for your future by saving that money. You need to focus on assets instead of liabilities and getting out of debt means that you can build assets where others pay you, instead o ...
The full tutorial is about 1687 words long .