Easy Ways To Save
One financial blogger calls this the ‘exclamation decade,’ due to the increasingly sensational nature of news headlines and current events. In the same vein, if the ability to consistently save seems as outrageous to you as fearful headlines, you are in good company. According to CNN money, 43% of Americans have less than $10,000 in savings. With unemployment rates continuing to rise, stats like this mean many Americans have just a few months of living expenses saved in the event of job loss. In any case, saving now is on par with a daily dose of caffeine- it’s just beneficial. Here are some easy tips to begin implementing savings into your daily lifestyle:
- Learn to live below your means- A secret of many millionaires is that they live frugally. Even when you can afford to splurge, it doesn’t necessarily mean you should. In today’s economy it’s never been more important to live in the here and now. The job you have today may be gone tomorrow, so save money while you can.
- Limit your ATM withdrawals to one per week and learn to make it last- This pretty much speaks for itself. Withdraw a small amount, like $40-$60, and learn how to make it stretch for the entire week rather than making multiple ATM withdrawals.
- Round up to the next dollar whenever you are subtracting an item from your checking account-These small amounts really add up over time and can create a cushion of savings. Even if that only adds up to a couple hundred dollars over the course of a year, that’s still money you wouldn’t have had otherwise.
- Budget in your ‘latte factor’-Everybody spends occasional money on little items like coffee, gum, soda, magazines, books, etc. For those of us who spend too frequently, it’s important to actually stick these items in a budget so you know where your money is going. Don’t let simple, everyday habits be a hole in your pocket.
- Buy cheap- Paying top-dollar for things when you don’t have to doesn’t make sense. Try buying off-brand items, or shopping at less costly stores like Ross or TJ Max for clothes and some household items. Then, put the money you saved in your savings account.
- Spare change: ‘tis better to give than receive- Don’t know what to do with that jar of spare change lying around? Be intentional about building it up throughout the year and then contribute the money toward birthday or holiday gifts. With your newfound skills in purchasing cheaper items, your spare change can go a long way. Stats show that the average American household accumulates around $5.50 in spare change a week. If all of that is saved for a year, that’s an extra $286!
- After paying off a credit card or loan, pay yourself by depositing the same amount into your savings account each month- By doing so, you will eventually accumulate the amount that you had in debt in your savings.
- Before making any impulse purchases walk away and then come back- By taking a break before making a random purchase, you will have more time to decide if you really do need the item. Use this time to decide if the item is really a need or just a want.
- Sell extra clothes-Sell clothes you no longer wear but that are still in good condition to a well-known second hand store like Plato’s Closet, or have a good, old-fashioned garage sale and pocket the profits in savings.
- Network- Loosing your job in this economy is a common reality for many. In the event that this happens to you, use networks of friends and coworkers to your benefit by asking them to refer you to people or businesses they know are hiring. Don’t give up in this area- networking really does pay off.
In these times, savings isn’t merely an option, but a necessity. Even if you are saving only a small amount each month, making it part of your lifestyle will allow you to save even more when your budget allows. And, this is a surefire way to prevent debt when ‘life,’ ie- disaster, strikes with extra expenses. If this isn’t enough motivation, keep in mind that, “The price of discipline now is always less than the pain of regret later.”
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