If you are one of the millions of Americans with a variable income, here are some strategies you can utilize to keep your savings on track:
Set Up a Savings Plan
Automatically calculate savings as part of your monthly expenses. Setting aside either a fixed dollar amount or a percentage of your income each month will ingrain savings into your budget.
Maintain an Emergency Fund
It is important to plan for gaps in income when you do not have a steady cash flow. Keeping 3-6 months of reserve cash for expenses will allow you to maintain your retirement plan even when months are lean.
Prioritize Expenses
Know the difference between fixed and discretionary expenses. Cut out the least important expenses if you need help hitting your savings goal. (Making a list will help!)
Limit Splurging
It is easy to pat yourself on the back for good saving and spending habits by splurging, especially if recent income has been high. Rewarding yourself can be healthy, but don’t go overboard and damage your overall plans.
Review and Adjust
While it is important to stick to a plan, it is equally as important to review it regularly. Major changes in expenses or income can make an existing savings plan
unrealistic. Adjusting your budget is better than holding yourself to impossible standards.
This article was written by Advicent Solutions, an entity unrelated to Prudential. ©2020 Advicent Solutions. All rights reserved.
White Rose Wealth Management
Peter Kelly
White Rose Wealth Management is not an affiliate of Prudential Financial. Pete Kelly sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. White Rose Wealth Management and its representatives do not render tax or legal advice. Please consult with your own advisors regarding your particular situation.
Peter Kelly offers financial planning, Aaron Trinh offers investment advisory services through Pruco Securities, LLC(Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to separate client agreement. offering insurance and securities products and services as a registered representative of Pruco and an agent of issuing insurance companies. 1-800-778-2255.
White Rose Wealth Management, LLC is not affiliated with The Prudential Insurance Company of America and its affiliates, including Pruco. Other products and services may be offered through a non-Pruco entity. Peter Kelly, Aaron Trinh, nor White Rose Wealth Management, LLC do not render tax or legal advice. You should consult with your own advisors regarding your particular situation.
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