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Great Ways to Build Up Your Savings, and Why It Is Important to Do So

Maximizing Your Financial Security: Strategies for Growing Savings and Their Significance

By andrewdeen14Published 3 months ago 3 min read
Great Ways to Build Up Your Savings, and Why It Is Important to Do So
Photo by Alexander Mils on Unsplash

It takes money to live, everyone knows that. Strangely, despite this very obvious understanding, the rate and commonality of healthy financial practices (especially earlier in life) is not as common as one might think.

There was a brief shining moment in American history back in 2021 when financial health rates for the U.S economy reached a new high. Sadly, though somewhat not surprisingly, that quickly changed after the pandemic took over the world for a few years and threw everyone and everything off. The universal rate of psychological crisis and trauma experienced during the pandemic was only exacerbated by financial concerns as well.

The current news is mixed: the good news is that financial health levels have gradually returned themselves to pre-pandemic rates, but there are larger disparities between categories which are markers of financial health.

According to statistics presented by the Financial Health Network in their 2023 U.S. Trends Report, while the percentage of financially healthy Americans has not changed very much, the category of financially vulnerable Americans has increased. This is particularly true of more consistently, economically disadvantaged populations. While ethnicity plays a major factor in general reporting that is not the only factor, location, religious standing and even gender, like the growing LGBTQ+ community, can contribute to financial stability numbers. Many of these factors and more are what make up the summary of American financial health.

Currently, only 30% of Americans sit in the category considered “Financially healthy”, 54% are in the “coping” category, and a concerning 17% are considered “vulnerable”. No matter where someone may be in their life, there are steps that can strengthen financial health ratings.

Here are some great ways to build up savings and reasons why it is a good idea to take those steps.

Dining Indulgences

Many people are likely familiar with the now cliche gripe about how expensive coffee drinks have become, but may fail to make the connection to just how much money they could be saving if they chose to forgo that indulgence. It is not just cutting back on coffee that can fill out a wallet or bank account though, making a conscious effort to avoid falling victim to sales funnels is necessary to be able to save long-term.

The cost of eating out or ordering is staggeringly more expensive when actually running the numbers. Conservative estimates put ordering in at around 3-5x more expensive than preparing a meal at home, and markups at restaurants are not just random, they are strategic. That means that a meal that may cost about $5 to make at home would cost around $25 per person when eating out.

The bottom line is, cutting back on eating out is a quick and easy way to save more of that hard earned money. It is also healthier.

Comparing Insurance Providers

Sure, there are plenty of clever insurance commercials to promote attention and get a laugh during the Super Bowl, but how many people actually take the time to shop around for insurance rates? The different coverage policies, varying rates, and nonsense fees can add up quickly over time— especially if having to insure multiple major items. Luckily, there are plenty of services that can help to sort through what companies and which policies make the most sense for the time and place of life.

Buying in Bulk

Costco has become a household brand for a reason: people can find impressive deals all in one place. However, Costco is not the only place that people can buy in bulk to save money, in fact, it is because of large store brands offering impressive discounts that other competitors— the local grocery chain, and even major pharmacies— also have to drop their prices. The point is that making an effort to shop and buy in bulk when there are deals can add up, and save even more time.

The Benefits of Saving

Stress can come from anywhere, but money concerns tend to remain as a consistent culprit. People who have not yet come to a place of financial health or discipline that has moved them to create a savings account or an emergency fund are meant that they are at a much higher likelihood of stress and anxiety. Cars break down, accidents happen, appliances burn out, and none of those items are cheap. Creating a buffer for those moments is actually linked to greater feelings of happiness and wellbeing.

Additionally, people who do so find a greater sense of control and peace versus worry, anxiousness, and even terror. Whatever steps are taken, each plays a part in moving people toward greater financial and emotional health.

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    andrewdeen14Written by andrewdeen14

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