The liquid savings category lists personal finance tips that can help you save money.

Pay yourself first

When you are trying to save money, practice saving money right when you are paid instead of spending first. You are always going to find ways to spend what you make every month, so you might as well save first so you have something to show after all that spending.

Save a 3-6 month emergency fund

Save an emergency fund in a regular checking or savings account that you set aside for emergencies. How much you should have in your emergency fund depends on your income streams (the fewer sources of income, the more you need in your emergency fund). The biggest point to take away here is that you should have some cash money set aside for emergencies.

Save 10-12% of your income

One rule of thumb for saving is to save 10-12% of your income. This is a ratio that you can use with your other financial goals to see if it makes sense for you. For example, have an emergency fund set aside that you no longer contribute to, but also save 10% of your gross income. Push yourself to save this much in your retirement account because you know the value of compound interest

Save for big purchases ahead of time

An example of how you need to be prepared for expenses that you know are coming up. Save in advance. Plan liquid savings for big expenses ahead of time, so you do not find yourself in debt.

 

Until next time.

The MoneyShop Team

 

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.