Defensive Savings

What is the difference between something and nothing? The answer is everything. Do you have a savings account or other means to sock money away? If you don't, you may put yourself in a higher risk category than you have ever dreamed.

Start today, and put aside as much as you can into a cash savings account. Have a target of $500.00. That is something. Not having that $500.00 available in your time of need can be a real heartbreaker. If you needed immediate cash for something, would you be able to get it? A number of banks allow you to have more than one account under your name. Start with a checking account or money market account for daily or monthly cash management. Then start putting money into a cash reserve savings account. You should target $500, but if you can put away more, that's great. If it's in an interest bearing account, all the better. If you deplete this account, make sure you replenish it as soon as possible.

The next level of savings you should set as your goal, is a reserve of three to six months worth of your normal income. What happens if your job is "right sized" and you find yourself out of work? I have seen that happen way too many times to know it can happen to anyone. While looking for something else, you will have the option to live on your income reserve account, while you seek other employment. Do not touch this account, unless you have lost your primary means of generating income! If you never need to touch it, then great, it will reflect as a nice asset on your financial statement.

Lastly, develop a savings plan for retirement. Put away whatever you can afford to do, and target the maximum you can that can be matched by your companies matching policy (if there is one). Whenever you get a raise, increase your savings amount as well. This is typically done through 401(k), 403(b), IRAs or other securities plans that you can contribute to. This is typically a pre-tax deduction from your paycheck, so you end up paying less on your taxes (today), but may be required to pay taxes on that money when you want to cash in on your long term savings. Talk with your tax adviser at least annually.

What does this have to do with our credit score? Everything. If you have the ability to continue to meet your obligations in the face of adversity or recession, then you have protected your credit score. If you develop good savings behaviors and prohibit yourself from making poor buying decisions, you can secure a much better financial future for yourself and your family.

Saving Money Through Budgeting

Many people tend to ignore the importance of saving money. There are many ways in which money can realise its full potential instead of being spent impulsively. Most of the richest people of the world keep a track of where their money goes in order to augment income.

So, it makes sense to keep a spending log. Pay yourself first before spending and ensure that at least portion of your income goes in compulsory investment plans. Only spend on stuffs that are important. With money saving and wealth building opportunities aplenty these days it is not much of a problem with a little bit of budgeting.

The first step to a proper budgeting is to figure out the differences between a want and a need. Avail the different money management plans to achieve the financial goals successfully. Investing wisely often helps to spread risks associated with investments. There are many plans available to choose from. In this growing information regime it is also not difficult to get good solid information on saving money through proper budgeting. It makes sense to get in touch with good financial consultants to augment your moneysaving skills. With healthy spending habits budgeting will no longer appear to be a distant dream.

Some of the common money saving tricks that can help your budgeting process is as follows-

-Money multiplier Scheme

-Multi Gains Current Account

-No Frills Accounts Scheme

-Multi Gains Savings Account

-Deposit Reinvestment Scheme

-Apply for medi claim policies

-Apply for household insurance policies

-Apply for tax saving schemes

-Invest in recurring deposit schemes

-Apply for fixed deposit schemes

-Invest in Mutual funds like Systematic Investment plan, growth funds

-Directly invest in Monthly income schemes

-Apply for senior citizen term savings scheme at a fixed rate of interest.

- Invest in company bonds, debentures, and equity funds

-Do not go for payday loans and its likes, which will charge you a higher rate of interest in charge of quick money.

Other common household moneysaving tricks are as follows-

-Compare rates with several dealers when taking home loans to find the cheapest one.

- Subscribe to e-newsletters, which comes free of cost and also are easily accessible.

-Avoid spending on unnecessary costs like smoking.

If you find budgeting to be too difficult you can also take the help of budget planner where you can easily type in your income and expenses.

Budgeting also includes making the most of money saving offers given by airlines, travel agents, malls and stores. You can also think of utilizing spare time in ways that can profit you. As a recent poll indicated moderate savings on big items along with savings in smaller items can reap huge benefits for you. So fend off your ugly money woes by following a proper budgeting. Next time when you get your salary make sure to budget your way to smarter spending.

Keep yourself informed to maintain a proper financial portfolio through budgeting. Look for worthwhile savings. Buy multiple items at a lower price. By adopting a few basic budgeting techniques you can save a lot and strengthen your financial prowess in the long run.