Save, set, spend: A new perspective on money managementHow do you use your paycheck? If you’re like most, you get your bills and basic needs met first, then spend, save and maybe even give back whatever is left. While covering your needs first makes sense, rethinking how you use your paycheck could boost your savings and make you more financially secure.
By: Staff Report, Alexandria Echo Press
How do you use your paycheck? If you’re like most, you get your bills and basic needs met first, then spend, save and maybe even give back whatever is left. While covering your needs first makes sense, rethinking how you use your paycheck could boost your savings and make you more financially secure. Consider this method from Thrivent Financial Bank to help you increase savings and manage your budget.
Step One: Save
Upon getting paid, it’s easy to get in the habit of spending first and saving the remainder. Consider having your entire paycheck directly deposited into a savings account. This approach will help to ensure that you save something from each paycheck.
Perhaps the most significant effect of this change will be your attitude about spending. Putting your money into a savings account right away could cause you to think carefully about withdrawing it.
Step Two: Set
From your savings account, directly deposit a set amount into a billing checking account. One great feature of this approach is that you can adjust the deposited amounts as you go to accommodate for miscalculations and changes in your income or bill payments. It takes courage and some discipline to face the total amount you need for bills each month, but the control and peace of mind you will gain from that knowledge is worth the effort.
Step Three: Spend
Once you’ve covered your bills, set aside a specific amount for spending and open up a checking account specifically for that purpose. This will help you control the amount you spend on discretionary items and help you make sure you don’t spend the money you need for bills and savings. Whether you use your remaining funds to give, spend on yourself, or a combination thereof, you can do so with the confidence of a responsible spender, knowing at all times how much cash you have on hand.
Keeping track of your finances is important, especially as you transition into a new method of money management. Watch your accounts and keep track of your money carefully, making adjustments as needed to the amounts you deposit into each account. Visit Thriventbank.com/cashmomentum
About Thrivent Financial for Lutherans
Thrivent Financial for Lutherans is a not-for-profit, Fortune 500 financial services membership organization helping approximately 2.5 million members achieve financial security and give back to their communities. Thrivent Financial and its affiliates offer a broad range of financial products and services including life insurance, annuities, mutual funds, disability income insurance, bank products and more. As a not-for-profit organization, Thrivent Financial creates and supports national outreach programs and activities that help congregations, schools, charitable organizations and individuals in need. For more information, visit Thrivent.com