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24Apr2018

How Americans Can Beef Up Their Savings Accounts

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April 2018

By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC

 

While the U.S. economy is on a roll, many Americans have very little wiggle room in their savings account.

An estimated 57 percent of adults in the U.S. have less than $1,000 in savings, and 39 percent have no savings at all.

Here are some financial habits that can lead to healthier finances and ramp up your savings game for emergencies or big life moments:

Follow a budget

People need to know where their money is going month after month. A budget is the single most effective money management tools, and most Americans do not follow one. Create a budget by listing existing monthly expenses; factor in one-time expenses; and compare what is spent versus what is earned. Many Americans can cut back after examining their spending.

Avoid impulse purchases

An estimated five out of six Americans make impulse purchases, and 20 percent of them admit to spending $1,000 on a whim. Wait 24 hours before buying non-essential or unusual purchases. After that waiting period, most people realize they are better off banking that money rather than spending it on something they don’t need.

Pay bills right away

Paying bills on time avoids late fees and plays a huge role in your credit score. Paying bills as soon as they are received or signing up for autopay eliminates that chance of being late.

Review credit score every four months

About 16 percent of Americans admit to never checking their credit reports.  An estimated 20 percent of credit reports contain errors which hurt scores and can make borrowing money more difficult and more expensive. You can get free credit reports from Equifax, Experian, and Transunion annually and can even sign up for free credit monitoring through Credit Karma.

Study bills for errors

Before a bill is paid, be sure to review it avoid paying invalid charges. Pledge to never pay a bill before reading it from beginning to end to avoid overpaying.

  • 24 Apr, 2018
  • Summit Consumer Receivables Acquisitions, LLC

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