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Saving is a Way to Your Future




Saving for the future is never too late, and it’s crucial. Everyone should have a savings account. Putting cash aside will help you take a vacation or put a down payment on a car or large household items, and this will eliminate charging the item on your credit card. Using a credit card is convenient and easy. During the summer months, you may want to take a vacation or purchase your item now! Sometimes, your desire may need to go on hold. It would help to wait until you save enough to take a vacation or purchase your home item. Think about delaying using your credit card to pay for purchases at a later day. Saving is critical to accomplishing your desire or goal that can be captured on your budget plan.

One good thing about saving is you can plan for a rainy day. The old saying is that a rainy day will come no matter what. Another point to make about saving is eliminating additional costs such as interest. Using a credit card to purchase an item or product costs more. If you charge, for example, a computer on your credit card and the interest rate is 19% on the card, it would cost more to pay for the computer. Interest is added every month, and if the credit card purchase is not paid within a month of the purchase, interest continues to build up. Paying off credit card debt could take more than ten years if you pay the minimum. Keeping funds in a savings account for future purchases will help accomplish your goal. Remember the scripture Proverbs 6:6 ESV “Go to the ant, O sluggard; consider her ways, and be wise”.

There are three examples to help you set your goal for savings. Create automatic savings from your payroll or from your checking or savings account. Designate a specific amount to save each month. If you have a particular goal, this will allow you to determine how much to save each month to achieve your goal. If your goal is to have $1,000 saved by the end of six months, then you will need to save $167 each month. This can be done using automatic savings.

Another example is saving cash or coins in a jar or envelope. Each time you get extra change, put the change in a jar. If you fill up a water bottle with dimes, you can save $100 in coins. You can have more than one water bottle filled with coins. This may sound trivial, but it is a start. Third example is to participate in a savings challenge. I mean to save $1.00 the first week, $2.00 the second week, and $3.00 the third week. In essence, you increase your savings by $1.00 each week. The balance at the end of the third week would be $6. If you continue saving for 52 weeks, your total savings will be $1,378. You can start the saving challenge any time of the year. If $1.00 is too much, try .50 cents. Applying the same method as discussed would save $689 by the end of 52 weeks.

Another saving idea is to have an emergency plan. Saving for emergencies is crucial. Most financial institutions suggest saving three to six months of your expenses. Most jobs are not guaranteed, so you should have a plan in place to save for emergencies little by little. Having this emergency savings will give you relief if you are laid off your job. At least put forth the effort to save for emergencies. You will be glad you did! Challenge yourself to have a saving plan.


Grace & peace,


Meliton


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