Sometimes it seems like we need a bad economy to hit us so that we realize how important saving money is.  Most likely a majority of us were not prepared to loose our jobs, didn’t have enough money saved in the bank, and were looking for ways to make money quick.  Saving money is something that lets us feel financially secure, helps us plan for retirement, and will save us if an emergency situation strikes.

Saving money is extremely important, and is something you should always be thinking about.  If you’re looking to put saving money first, here are a few ways you can do so.

  1. First figure out how much you bring home from work on a monthly basis.
  2. Once you’ve found out this key number, you should know that you’re supposed to save at least 10% of each paycheck.
  3. So, lets say you make $3,000 a month, you should be saving $300 a month minimum.
  4. Now, treat your savings account like a bill.  You should automatically have that money deposited into your savings, CD, or money market.
  5. Now, figure out how much you have left to pay the bills.  You should have $2,700 left (according to this scenario.)
  6. How much do your monthly bills cost?
  7. Subtract that number from $2,700.
  8. Now the left over money you have is what the difference is after bills.  This money is what you can spend each month or save if you want to save more.

You should always put saving and your bills first before anything else.  This will make sure you have a back up fund, and will make sure you can help pay all your bills on time.  It is also said that you should have an emergency fund up to at least 6 months.  So, let that be your goal that you’re working on.  So lets say you make $3,000 a month, you should have $18,000 for your emergency fund.  This will support you if you go into foreclosure, can’t pay your bills, need money to eat, etc.

Putting what really matters first is more important than what you “want”.  What good is it to have a nice TV, half million dollar house, and a Lexus, if you’re struggling secretly with no money in your savings?  What are you going to do?  Always make a budget, and keep saving first!