Everyone knows it’s important to have money saved, and not just for big things like retirement or college tuition. Having savings is critical for economic security, debt avoidance and general quality of life.
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Knowing this is one thing. Doing it, and doing it consistently for the long-term, is quite another. If you’ve never saved money before, getting started can seem daunting. However, as with many things, the idea gets less intimidating when you break it down into steps. So here are a few basic tips for building a budget and getting started saving.
Four steps to a basic budget:
- Step 1 - Create a list of all monthly income
Make sure to include everything, even that extra cash from your weekend yard sales. - Step 2 – Make a list of your necessary monthly expenses
“Necessary” expenses are the ones that have consequences if you don’t pay them. Include a monthly savings deposit here.
Here’s a tip: Hancock Whitney offers free automatic transfers between checking and savings accounts, so you can automate savings by setting a regular transfer—like once per month, or even a weekly transfer of a smaller amount—and let savings grow automatically.
- Step 3 – Now list your monthly “wants”
These are expenses for things like dining out, gym memberships and movie tickets. - Step 4 – Make sure your expenses match your income
Time to make adjustments. If your income is greater than your expenses, consider increasing the amount you put into savings each month (and congratulations!). If income is less than expenses, take a look at your “wants” and see where you can make some cuts.
Now you’re all set to begin saving – just follow your budget! We recommend a Hancock Whitney Silver Savings account as a great way to set money aside and earn interest2 on every dollar. Plus, automatic transfers from your checking account make it easy to save!
Before you go, we suggest you take a deeper dive into budgeting and saving by checking out some Hancock Whitney's Financial Cents resources listed below. If you want, bookmark this page and return to it when you have more time to read up on these topics and more.
Budgeting and Saving Resources
Strategies and tips for creating a budget and sticking with it
Building emergency savings, and why it is important
Deciding what to spend your money on
2 For a Silver Savings account, the Annual Percentage Yield (APY) of 0.01% is effective as of 10/1/2020, in all states. Note that interest rate is variable and subject to change at the Bank’s discretion. Fees may reduce earnings on the account. $100 minimum opening deposit is required to open account. No minimum balance is required to earn interest.
³The Bank will charge a $3 transaction fee for any withdrawal in excess of three per month.
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