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Whether you are young or old, student or full time employee increasing your saving is important. Does it feel like every dollar seems to be sucked into an endless money pit? And that you have to guard your last dollar before it too gets sucked into the pit? It is never too late to start saving. At the rate at which people are incurring debt and the rate at which obtaining money is becoming easier, its important that you know what to do with this money. This article will focus primarily on students and ways they can save money while working and balancing jobs, but it can generally apply to anyone. This is Plug Plug providing you with the recent and latest news on tech and lifestyle trends. Start plugging into your success by staying plugged into the latest information that has an impact to change your life.
Budget Plan and the First Week
This month specifically by itself will be the hardest. Which is why with that knowledge we can come to understand the importance of building a budget plan within the first week of establishing this. This month is important because it too along with month 2 focuses on decreasing the amounts you must pay to open accounts and fixed rate expenditures.
Specifically this is talking about open credit accounts and monthly charges for cable, internet, and mobile services. To increase your savings it is crucial one comes to decrease the amount of money that must leave their pocket monthly. This requires one to deduce the amounts they owe on said accounts.
When building your budget plan determine which accounts you owe the most to. In order to Increase your savings its pivotal because it allows you to build a structured plan that focuses on deducing costly accounts. When building this plan for month one it would be best to aim to pay the things off within the first half of every month. This then requires you to then set up all your billing dates to fit your budget plan.
Month 1 and 2: Increasing Payments to Increase Your Savings
Month 1 and Month 2 will focus on low spending and increasing your payments to credited accounts or bills. After month 2 one can start to see their money becoming more freely available. This money you can use either to increase your payments on credited accounts or you can put into a savings account. Whatever you choose do your best to not spend this money. It is smart to set yourself on a budget on how much you can reasonably live on.
For example if you know that you have food at home and rather than completely cut off fast food, try waning yourself from it by setting a budget lower than the expected or average amount of money you put to fast food usually. This allows you room to not only work with, but it gives you a fail safe for emergency situations. Any money not used in your weekly or monthly living budget (depending on pay) must be used for payments or placed into your savings account.
Month 3: Finishing Payments to Increase your Savings
This is probably a good time to say that once you get to Month 3 or 4, that you will be relieved at how well this plan tends to work out if you persist with it, also the best month for increasing your savings. Month 3 depending on the level of debt you have incurred or the amount of open accounts you have, will probably be the best time for you.
Money will not only be openly available, but the amount of debt owed to credit cards and other accounts should be lowered if not already paid off. Now its important to keep a small charge on credited accounts that affect your score.(Use for expenses like gas) This makes your utilization score nearly perfect and keeps all accounts open and reasonably paid. Month 3 should be used to focus on ways to increase your savings. Within this month you should come to finish paying off more of those open accounts.
In this month you should be able to increase your savings by double the amount you were able to the last month. Month 3 will provide you with the option of either throwing all your money into a savings accounts, or coming up with a plan that allows you to save a percentage of your household income monthly.
The Plug recommends that you do your best to not spend any of the money you make, unless it is dire. However life happens, and with that extra money it wont matter. This savings plan not only increases your financial security to handle life’s problems and inconveniences but better prepares you for the worse case scenario.
Month 4 and 5
You will fee on top of the world and this is where its important you develop a new budget plan. This month should be the final month for your open accounts if you were to owe slightly less than $3500-$4000. This month will also require you to make a bigger decision. With what we can assume will probably save you ~$2000 by allocating your expenses to always leave you with $86-$325 weekly by this month if you have any debt that has been closed and sent to collections it is important you start to address those balances.
Now as students, these balances can include paying off loan interest or the loans themselves if they are smaller than most. All these things can help you increase your savings.
For those lucky enough to not have any closed debt accounts this month will be the greatest for you because you will have fully lowered your open accounts and their cost. This will allow you to lower your balances on those closed accounts. Hopefully you will have paid off any debt owed to credit companies. Lastly this month will triple the amount you save.
Month 5 will be the same as month 4, or slightly different depending on your debt. (referring to closed credit accounts or loan interest) If not then this will catch you up and maximize the amount of money you save. It is up to you to follow the schedule.
I would also recommend that you use a weekly planner or budget planner for this 5 month plan. It will help you stay organized and efficiently create a better habit of managing household expenses.
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