Getting a financial strategy in place to help manage funds and save money can be important for many individuals. In order to accomplish this, some Americans may look for a number of options that can strengthen their position.
One aspect of strategizing is for Americans to look at what is needed to purchase and stick to the necessary items only, according to a report from the Certified Financial Planner Board of Standards, Inc. Many people have a tendency to overspend by not remaining disciplined and taking advantage of items that they don’t need in their homes.
Another aspect of budgeting that many consumers use to improve their situation is to take the money out of their paycheck that is needed for necessary spending and put the remainder into savings, the report explained. That method works to keep a specific amount of money in an account that a person will be less likely to touch.
“We know it’s important to set money aside regularly, for a rainy day and a sunny future, but it obviously isn’t always easy to do,” said Eleanor Blayney, consumer advocate at the CFP Board. “We need to reverse the ‘easy to be bad’ and ‘hard to be good’ dynamics that determine our spending and saving behavior.”
Some Americans look to spend more
Getting finances into a stronger position can take some work, but many people may already be in this position. This could see more spending ambition, potentially due to a stronger savings strategy.
Approximately 58 percent of individuals want to save more money in the first six months of this year, according to a report from Harris Interactive. This was 11 percentage points higher than September 2013 and 8 points higher than in November 2012.
Meanwhile, many are considering increasing their spending on items that they may not necessarily need. The report showed that just 55 percent plan on cutting their restaurant spending, which was lower than September’s 62 percent. A total of 52 percent said they would slow entertainment spending, which was notably less than the 61 percent who said this a few months earlier.
Fewer Americans plan on cutting down on other items that they previously were worried about purchasing. The report added that just 34 percent of those polled will slow their spending when getting a haircut, while just 21 percent will try and cut down their cable package.