4 Ways to Practice Good Saving Behavior

KENTWOOD, Mich. - April 29, 2015 - PRLog -- 1. Determine your savings goals
It's important to reflect on what you'd like to do with your money, so you can prioritize and adjust your spending behavior accordingly. For example, maybe going on regular vacations is more important to you than frequently dining out, so when you're packing lunches or making meals at home, you can put your saved funds toward a vacation. You'll want to consider short-term desires, such as a wedding or a car, and balance those with your long-term needs, such as retirement and paying for education.

2. Have an emergency fund
Short-term cash needs often arise, and failing to prepare for them can derail your savings goals. Pre-retirees should save three to six months of living expenses; supplemented by a line of credit, and retirees should save up to three months of living expenses, also supplemented by a line of credit. By having money readily available for unexpected expenses such as a job loss, home repair or unplanned medical expense, you can be better able to stick to your long-term investment strategy.

3. Save automatically
The old saying, "Pay yourself first," applies here – make saving money as easy as possible. Divert funds automatically from your paycheck into an account you have set aside, or consider systematic investing into your Edward Jones account.

4. Remember that saving and investing are different
Some people may shy away from investing, thinking it’s too risky. Although investing does pose risks, it’s important to bear in mind that not investing can also be a risk to your financial future. Since saving is simply accumulating money in a safe place so it’s readily available when you need it, it often provides a low, fixed rate of return. Investing, on the other hand, puts your money to work over a period of years by using money to potentially create more money.

For more information on being a smart saver or to open an account, contact a financial advisor in your community today to build a strategy that will help you accomplish your savings goals.

Investing involves risks, including interest rate risk, credit risk and market risk. The values of investments fluctuate and investors can lose some or all of their principal.