We always need to save a little money for those rainy days. However, since everything was going great there for a while, many of us just didn’t bother with it anymore. We would save a little but not curb out spending habits. With the way the economy is nowadays, we have begun to cut back on our spending habits. Find ways to save a little money here and there. Many of us live paycheck to paycheck. Some families have been reduced to one income and have to find ways to pay their debts survive and save. It’s true, in the beginning it is hard, we are so used to buying whatever we want, not actually needing anything.
We have thought about the future but have not actually planned for it. Now is the time to start planning, there is no need to delay it anymore. We have to plan for ourselves and our children. Have you put money away for your retirement, children’s education, or a loss of one’s job? It seems that we just don’t want to think about these things, it scares us. But do we do any good by avoiding it? Believe it or not, it really doesn’t work itself out; you have to be ready for anything that may come up.
401K Plan
Most companies have 401(k) plan but most of us don’t take advantage of it. The 401(k) plan is actually a great way to save money. These are pre-tax dollars that are invested for you and there waiting for you at retirement. One of the problems most of us have is we believe we won’t be able to make it without that money we are putting away. At first, yes, it will make a difference but as time goes by, you don’t even think about it. Remember, this money you put away is for your future, you will need it.
SALES
We have to learn to take advantage of sales. It’s time to become smart shoppers. Avoid high ticket items. If the pair of jeans you normally buy are $60.00 wait until they go on sale. Usually within a few weeks or a month, they are reduced to half the price and sometimes even more. Don’t go shopping just to shop. Buy items when you really need them. If you go in a store and see something you want, put it in your cart or carry it around for a while. Ask yourself if you really need it, be honest with yourself, you will see you don’t. Just imagine if you normally buy a 3 pairs of pants a month at $60.00 each but this time around you waited and purchased them at $20.00 each, you have just saved yourself $120.00. You will see the money add up.
CREDIT CARDS
It is easy to get in bigger debt because we have this plastic card with money on it. Before you take that card to pay, see if you have the cash instead. Try to save these credit cards for emergencies only. Interest rates have gone sky high on credit cards and an item can take years to pay off when paying the minimum payment. If it’s necessary to use the card, pay it off as quickly as possible. If your purchase was $500.00, don’t pay the minimum of $30.00 try paying $100.00 or more. Get rid of that debt as soon as possible. Don’t use them to pay any utility bills or groceries. Do the best you can to just pay cash.
MEALS
We run off to work but didn’t take the time to make breakfast or lunch. Off we go and we stop by and purchase breakfast, a special cup of coffee and a few hours later lunch. All this may have cost us anywhere from $10.00 to $20.00. Since this is a habit of ours, by the end of the week we have spent $50.00 to $100.00, unnecessarily. Take the time to make your lunch the night before, make breakfast in the morning and make your own cup of coffee. Imagine you can save over $200.00 a month, just by doing this.
COUPONS
Start using those coupons; take the time to clip them out. There are people that do this on a daily and weekly basis. When they go out and do grocery shopping they save at times more than $30 a week. There are actually people who shop and pay almost nothing for groceries or cleaning products. It’s time we learn from them and learn to save as much as we can.
KEEP A JOURNAL
On a daily basis write down what you have spent, whether it was groceries, a cup of coffee, a newspaper, whatever it may be, write it down. At the end of that week, add it up and see what you have spent. Look at it carefully after a couple a weeks. Many times you have asked yourself on what did you spend your money, well now you will know. It’s amazing to see that we sometimes spend our hard earned money on things we really didn't need.
SAVINGS ACCOUNT
Open a special savings account; make sure it is not attached to your checking account. If you have an atm card for this account, don’t keep it in your wallet, leave it in a safe place. At work, change your direct deposit. Deposit $50.00 a week into this saving account and the balance to your checking account. At the end of the year you will see that you were able to save more money than you thought you ever could. The next year increase it to $75.00 and so on. You will learn to live within your means. If possible try to live beneath your means, that way you save even more.
It’s time to cut corners every way possible. It is up to us to be responsible. Most of us have debts that are over $10,000. This could be the time to visit a credit counseling agency and find a way to pay these debts off. By eliminating all your debts, this will open the way for you to save even more. It would be nice to be in as little debt as possible and not have to worry whether you should pay your mortgage, car payment or buy groceries.