How to Save $1,000 in Six Months | Richard Banks & Associates, P.C.

In difficult financial times, coming up with enough money to cover your expenses is hard enough, so thinking about building up your savings account when bankruptcy might be on the radar seems especially unrealistic. Our team at Richard Banks & Associates understands and appreciates that quandary, but also knows just how important building up your savings account to that $1,000 point can be.

Did you know that recent studies have shown that 69 percent of Americans have less than $1,000 in their savings accounts? Even more alarming is that of those 69 percent, 34 percent had no savings at all.

Even if you’re in a less than ideal financial situation, an easily attainable goal for you to reach for is saving up $1,000 in six months. To help you reach that goal, try following these four steps.

1. Open a savings account: It goes without saying that in order to begin saving money, you will need to open up a savings account! Stashing your money in a billfold or purse might seem like an OK idea, but trust us—your savings are much safer in the bank.

2. Automate: Having money easily accessible can be troubling for your savings. Instead of letting it burn a hole through your pocket, you can easily set up automatic transfers from your checking account to your savings account. Don’t overstretch your resources, but try to schedule a small percentage of your paycheck toward your savings!

3. Cut back/Cut out: Chances are that on your journey to financial freedom, you’ve already cut back and cut things out of your expenditures. Give that list another good look. How often are you making stops at fast food restaurants to grab a meal on the go? Could you make your coffee at home instead of patronizing a Starbucks or Dunkin’ Donuts? Also, remember that unhealthy habits like smoking can add up to a pretty high bill.

4. Just start saving: We’ve already recommended opening a savings account, but on your journey to save $1,000 in six months even stashing away money in an envelope is a great place to start! You’re being proactive and taking initiative when it comes to your finances, which is a step in the right direction.

We at Richard Banks & Associates know that you’re doing everything in your power to right your financial situation and commend your efforts! Remember, we’re here to help you through the ins and outs of bankruptcy if that is deemed your best option.