Bank of America’s 8 Savings Tips to Keep Your Finances Healthy

In an environment of uncertainty such as that caused by the pandemic, it is a good time to start saving

In times of uncertainty due to the global coronavirus crisis, it is important to take into account a series of precautionary measures that must invariably begin with creating a culture of saving in personal finances, so this is a good time to start a habit that the passage of time will have its rewards.

So to get started on this task, we share with you the 8 tips from Bank of America to keep your accounts healthy.

1. Record your expenses

When that moment arrives when we realize that it is not enough for us, there are times that we do not repair where those dollars went, that is why it is important to keep a log where the expenses are recorded, no matter how small, from a tip or a coffee, while in the consumption made electronically, rely on the account statements to have the detailed expenses.

2. Budget savings

After having a detailed record of expenses, including other types of recurring disbursements that are not made as frequently as car maintenance, it is necessary to estimate what would be the realistic amount that could be allocated to savings. According to specialists, the ideal is to allocate between 10 and 15% of income.

3. Find ways to reduce your expenses

Make an evaluation of what expenses are really necessary or what others could be expendable to give you room to start considering savings; As little as it may seem, any unnecessary cut contributes to the economy, many times it is those small leaks in inconsequential things that do not allow saving.

4.Set savings goals

Setting goals is the best way to motivate yourself to save. Once we are clear about where we want to go with the money we are saving and what is needed, the next step is to determine how long it will take to reach the goal, whether it is short (1 to 3 years), medium (3 to 4 years ) and long term (more than 4 years) and preferably set a goal for each period and motivate yourself with each goal achieved.

5. Decide your priorities

The goals must be set based on what is most important for each person without always losing sight of the objective that will take us the most time, that is, not to accomplish something in the short term, let us neglect what we yearn for longer.

6.Choose the right tools

If there is a great temptation to have the money saved on hand, you can resort to deposit accounts in which you keep the money for a fixed term without the possibility of withdrawing it and with certain returns that can be added to the account.

7. Make saving automatic

By having a bank account, you can decide the amount of income that is allocated to the fixed expenses of each month and which ones go to savings without the possibility of disposing of it, so that it seems like a withholding that forces us to only get ahead with those that are available.

8. Watch your savings grow

It will always be motivating to see the evolution of the progress we undertake, so in something as personal as finances and the goal of saving, all the more reason. When you start to see results, there will always be an incentive to keep going.