Many Americans have a saving problem when it comes to their finances. They rack up credit card debt, student loan debt, car debt, and various other sorts of expenses. This causes them to exhaust their bank account or rack up interest on these debts. No matter what they go with, they are still draining their bank account. Many people have to understand that there are two parts to the equation when it comes to finances: income and outflow. In America, the average person makes $52,000 every year and 75% of Americans live paycheck to paycheck. This is indeed an outflow problem. In this article, I’m going to be showing you how you can leave more money in your bank account in just five simple steps.
- Make a budget
Every family must establish a budget. It’s a financial necessity within every household. When you establish a budget, you establish that you have full control over your finances. You know where every dollar is going to go at the beginning of the month, giving you a structured gameplan financially. On the other hand, people who fail to implement a budget into their finances have a hard time controlling their money. Money needs attention and this is exactly what a budget does. At the end of the day, you will leave more money in your bank account because of the budget than you did without it.
- Follow the 15% rule
The 15% rule basically means that you should be saving 15% of the income that you are bringing in every month. You should find a place for this number in your budget. If you cannot save 15%, focus on increasing your income. Your ultimate goal should be to put away 30% of your income once you have your money right. Put this 15% into a sacred account within your bank. Once you have enough money put away, you will have enough capital to make some investments.
- Cut down on unnecessary expenses
This is a big rule that many Americans fail to live by. They buy clothes they don’t need, overpriced food that they cannot afford, subscriptions that they don’t need, and the list just goes on. My recommendation to you would be to cut down on these unnecessary expenses if possible. Now, let’s establish what is necessary and what isn’t. A gym membership and a phone plan are very necessary expenses for various reasons. On the other hand, Hulu and Netflix have got to go. Your $5 cup of coffee every day may have to go as well. Many of these expenses are extracted straight from your bank account and can add up over months and months. All in all, cut down on the little things that you just don’t need and things that you won’t benefit from.
- Practice delayed gratification
Many Americans live by the saying “I want it and I want it now”. This rule is cancer for anyone trying to build wealth. You have to be willing to make the sacrifices today so that you can ultimately make the purchase to tomorrow. In other words, practice delayed gratification. By going with the more cheaper option, you’ll in turn leave more money in the bank that you can use to expand your wealth. If you need to purchase a certain car, getting a car title loan may be a great option so that you don’t exhaust your bank account.
- Check your accounts daily
Like I said earlier, money needs attention. You have to be obsessed with your finances in order to keep your bank account full. At least one time every day, make it a priority to check your bank account so that you know where your money is going. This will allow you to make sure that you are on track with your budget. If you follow these five steps, you should put yourself in a great position to have a large bank account.