9 Year Mortgage: Building a 6 Month Savings
Have you ever experienced a job loss, unexpected medical expenses, or an automobile repair out of nowhere? It`s events like these that can catch us off guard and result in significant debt if unplanned for. 9 Year Mortgage suggests some solutions to building a 6 month savings plan so you can start to get ahead.
Why 6 Months?
Studies have shown that the most common reason for having a 3-6 month savings account, is to prepare for potential unexpected loss of income. On average, it takes about 3- 6 months to find new employment, so being prepared to pay bills during that time is essential through savings.
If you are wondering how much you would realistically need in your own 3-6 month savings, it may be beneficial to ask your insurance what they recommend. Often insurance companies can help determine an accurate amount needed based off family size and other monthly spending habits. Tracking your own monthly spending habits is another way to gather this figure. By reviewing past bank statements, it is easier to identify exactly where you spend your money, and what would be a realistic savings plan based off your trends.
Top 5 Reasons to have a Savings
Various aspects of life are affected negatively, from the neglect of building a stable 3-6 month savings. Some of the following reasons 9 Year Mortgage gives, as to why having a savings will help improve your life:
- Protection against loss of income
- Provides stability in times of medical emergencies
- Helps in eliminating marital financial stress
- Peduces need for credit card debt
- Creates cushion for potential tax penalties
Set Realistic Saving Goals
Do you ever feel like people talk about having 6 months savings worth all the time, but you live paycheck to paycheck and it’s just not realistic for you to save money? Well, this is a very common mentality, but it is possible if you start small.
Much like going to the gym, it takes small steps first to see big results. Here are a few suggestions:
- First – If you do not already have a savings account open, go to your bank and set one up
- Second – Create a habit of depositing regularly into this account (any amount you can spare is helpful)
- Third – Create a strict schedule of depositing money, and stick to it (even starting with 5 dollars a week or less if this is all you feel you can afford)
- Fourth – It may help to set up direct deposit, to ensure a weekly, bi-weekly or monthly amount is going into savings
Even after a month or so, you will be surprised to see how much money has been saved without even realizing it was gone. Slowly, start bumping up the amount you deposit each week or so even by a couple of dollars, to increase savings.
Ways to Increase Savings
It always helps to analyze past spending habits. You may find that there are various areas where you could have cut spending (such as eating out, or buying clothes) that would have provided additional income for increasing your savings. 9 Year Mortgage suggests doing the following:
- Create a categorical chart of spending habits from the past month
- Write down areas where money could have been saved
- Calculate the actual amount of money that could have been saved to create as a visual reminder of non essential items that can be cut down
- After analyzing past spending habits, you may find that there are areas in which small purchases seemingly insignificant, added up to a significant amount. This moment of self realization and accountability will help in creating a new budget for the following month
- Set goals for the next month including weekly and daily goals
- Follow up with your goals each week, and plan on a certain amount of money to be directly deposited into your savings account, and if any extra income is available after essential needs are met, place that into the 6 month savings account as well
Will The 9 Year Mortgage Plan Work For Me?
To learn more about 9 Year Mortgage, and to find out if you qualify for the 9 Year Mortgage program. Find out how soon you could be completely debt free, including your mortgage, with the 9 Year Mortgage Financial Plan. Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! 9 Year Mortgage representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest! For more great money-saving ideas visit 9 Year Mortgage on YouTube or go directly to the 9 Year Mortgage Money Saving Minute. 9 Year Mortgage recently launched their Eliminating Debt with 9 Year Mortgage site , which is also full of valuable, free information.