Most people want to build up a savings account, but they don’t know how when their income is not steady. If you don’t have a regular paycheck to depend on, it can be difficult to create and live by a budget. One month you may be paid really well while the next month you struggle. Below are a few pointers for people without steady incomes who want to build up their savings:
Figure Your Minimum Budget
You should have an idea of the minimum you need to make ends meet. This budget should be based upon the minimum amount of income you expect to receive in any given month. If you’re not sure how to calculate your minimum budget, review your last year of bank statements and determine what your average income was, what your expenses were, and what budget you could live on.
Establish a Savings Habit
Even though you do not receive a regular paycheck, you can still create the habit of saving money. Even if you can only set aside a small amount each week, it will add up over time. Months were you have extra income, set aside larger amounts.
Pay Bills Automatically
If your checking account has sufficient funds to pay the necessities, consider paying your bills automatically. This will help ensure you don’t incur late fees or additional interest, which can take away funds that could have been put into savings. Just make sure your automatic deductions won’t cause your account to be overdrawn.
Set Goals for Your Savings
It is important to set a goal for each month, quarter or other time period. When you reach your goal, do something to celebrate. This doesn’t mean going out and spending everything you saved, but do something to reward yourself for all of your hard work.
As your savings account increases in value, it is important to deposit the funds in an interest-paying account. Research various financial institutions to see what forms of account protection and interest accrual rates they offer.
The above tips are just a few simple ways you can create savings for you and your family. However, if your debt is overwhelming you and you need assistance, let us help. The attorneys at Fitzgerald Campbell represent debtors all over the State of California in debt settlement, collections harassment and credit card lawsuits. If you have a matter relating to a debt you owe, contact us today by calling (844) 431-3851 for a consultation.