You’re trying to get your debt paid off as quickly as possible, which is great. Unfortunately, you’ve noticed the negative side to this is you’re not saving as much as you’d like. Here are some ways that you can keep saving even if you’re trying to get rid of debt.
Place those debts with the highest interest rate at the top your list. The sooner you get these paid off, the more you’ll save over time which allows you to save more. It’s also important to not let balances sit on your higher interest cards because it will take longer to get them paid. On your lower and zero interest debt, you can get away with paying the lowest minimum balance in order to allocate more to your higher interest rate debt.
PAY YOURSELF FIRST
Before doing anything with your money, make a deposit into your savings account, whatever that amount may be. It may even be helpful to set up automatic payments so you don't even need to think about it. In order to figure out how much you are able to save, create a budget.
ADJUST YOUR BUDGET
In order to pay off debt and continue to save, you may have to make cuts in your budget elsewhere. Instead of paying a Netflix subscription each month, utilize less expensive options like Red Box or your local library. These aren’t permanent cuts, just until your debt is reduced to a more manageable size.
It can be really difficult to achieve your financial goals if you don’t know what they are. Sit down and come up with a tangible goal, such as having three months of living expenses saved away. Once you know your endgame, you can come up with a plan to help get you there.
No matter what your savings goal is, Cyprus has a savings account that will help get you there. We offer a variety of savings programs including Certificate Accounts, Money Market Accounts and Individual Retirement Accounts. If you would like more information or are interested in opening an account, stop by one of our branches or visit our website.