The Benefits of Saving $100 a Month | Richard Banks & Associates, P.C.

The value of saving money is not something that we take lightly here at Richard Banks & Associates P.C.

We know that it can be difficult, but even if you are working a minimum wage job, it is still possible to plug away some extra cash into a savings account. According to a CNN Money news article, it was been discovered that nearly six in 10 Americans don’t have $500 or $1,000 in savings to cover emergency expenditures.

Since we don’t want you to find yourself backed into a corner financially if an emergency situation did arise, it is time to discuss the benefits of saving $100 a month. Did you know that if you’re 30 years old and begin saving $100 a month, CNBC has calculated how long it will take you to become a millionaire based on the rate of return? For example, saving $100 a month with a 6 percent rate of return would earn you millionaire status in 66 years.

Even if becoming a millionaire is not on your goals list, saving $100 a month would mean that after five months you’d have $500 in savings, and $1,000 after 10 months. Having a $1,000 emergency fund available is especially stressed by famed financial advisor Dave Ramsey.

So just how do you begin saving that $100 a month? Here are a few suggestions to get you started!

1. Limit excess spending. We know this isn’t the most popular idea, but by cutting out excess spending on non-essential items, you will be giving your savings account a big boost. Perhaps try cutting your entertainment budget in half to start and then evaluate from there.

2. Cut monthly bills. Are you still tied to a cable bill? Thanks to the Internet, cable is not necessarily required anymore. Check into streaming services or even options with Sling TV to see what you could save.

3. Never pay full price. Couponers may have seemed a bit crazy on TV, but they were truly on to something. Do your research before shopping and find the deals and coupons that will lead to the highest savings potential for you. You can also check out some of these websites to find further deals and discounts.

When you start to evaluate your spending habits and decipher needs from wants, it will become clear what decisions need to be made in order to start stashing $100 a month away. It may seem tough at times, but ultimately, you’ll be glad that you did!

If you do find yourself backed into a corner financially, remember that Richard Banks & Associates P.C. is here to help you consider your options and decide if bankruptcy is the right choice for you!