How to conserve

What to save for

Many people have no idea why they save. Many people have trouble seeing the big picture about the money they are saving. Saving cash is hard whenever you have no idea what to conserve for. You’ll learn how to conserve your money.

My first tip

Rather than saving your money, you should be investing it. The interest rate on savings accounts is so low that you will actually lose money over time with cash depreciation. Because money's worth goes down over the years, it is important to get a good interest rate. Even if you were to have a small interest rate such as six percent, you would be helped a lot.

My second suggestion

You have to conserve for yourself first. You are told you have to secure yourself before others on airplanes. You become useless if you aren't safe first. Saving cash is the same. It is hard to help someone else whenever you aren't secure yourself. You might start with an emergency fund that can last a couple of weeks. After that, you are able to try to conserve more. Your goal will be to have six months of savings in case of an emergency. You probably should start your retirement fund after that. You need to secure your future along with your children's futures. Once you have those funds going or completed, then work towards your children's college funds. It is much better to get a high return when saving money for your child's schooling. If you don't have a very high interest rate, then it can be impossible for the cash to grow for your children.

My third suggestion

Have your children be a part of this. Your kids will learn good savings habits by contributing their own cash as well. Some parents make their children conserve fifty percent of their paychecks for savings. Easily will they learn to be disciplined. I would suggest having your children learn good work ethic and learn how to conserve themselves. Kids need to learn how to conserve their own cash for what they want to do with friends. Your children will appreciate the saving you taught them.

Tip number four

If you can't be patient and wait for your money to grow then saving isn't for you. Investment account usually only increase your cash when left in them for thirty or forty years. This process is the way you should plan in advance for retirement. This will be great for you if you can just be patient.