Saving money is quite a challenge that most people fail to accomplish in their daily lives. Not because many of them are just blowing excess cash flow on nonsense, but because they simply do not make enough money to pay themselves every paycheck. Before their paycheck is printed up, the money is spent on bills.
There are some habits that need to be exercised by those people who cannot afford to save money. In today’s economical climate, employers are taking advantage of employees by hiring those willing to work for half the pay rate and demand twice the work from them. Let’s take a quick look at how saving little by little can result ultimately in a healthy savings account.
How to cut spending painlessly:
– A tight record of your savings should be evaluated by the end of every month. This activity will give you an idea of how much extra money you just spend on your trips to restaurants over fancy foods. These little saving budgets can make a huge change in the figures of your saving account, if you develop an efficient Budget Worksheet.
– Always look for necessary purchase only. It would be better to take a list of required items, whenever you visit grocery stores. This will help you to not to buy unnecessary items. Spending money on important things such as food and insurance should be your first priority.
– Usually, people carelessly spend lot money on the occasions such as Christmas, birthdays, and holidays etc. for gift exchange purposes. It would be wise to only purchase few well-chosen gifts falling in your budget scheme, rather than going for costly pile gifts without second thoughts.
– Looking for online sales and coupons information in your local newspapers is also an efficient idea. Purchase of low-price products benefits you in every way.
– Always stay strict to the pre-fixed figure, for your savings account on weekly/monthly basis.
Reduce high cost debts:
– Payday loans and high-interest credit cards must be avoided if you want to increase your savings account. A credit card charges you with an interest rate of 25%, whereas payday loans charges 500% of interest rate. Avoiding these two can save you hundreds and thousands of dollars, surprisingly.
Save for Emergence:
– Always ask your credit union or bank to directly transfer money in your account. This little saving of 10 to 15 dollars results in 120 to 180 dollars, yearly.
– Generally, people don’t value loose change. However, adding loose change in your savings account could give you up to $100 over a year.
– Always pre-plan your emergency fund to be occupied in critical situation, rather than going for bigger loans. Although, such funds are being kept in sharing accounts, but on the other hand they pay you enough when in needy situations.
Take free money and save it:
– Participation in Investment Development Account (IDA) programs could be advantageous for you. Attending such financial activity programs and contributing in saving a home, education or business could save you approximately $900 yearly. Just receiving a $2 for every $1 makes your savings account happy.
– There are few employers who tend to match up to 100% of your contributions. If you come across such employers and they perfectly match your retirement savings, then let yourself to endure 100% advantage of such opportunity.
Being on a tight budget sucks big time! But there are new habits that have to be worked into your way of life in order to survive being financially challenged. There is nothing attractive about poverty. Though many hate that they fall into the poverty category, the truth is most of the country now falls in this dismal status. Before Reaganomics, many Americans got over with a $35K salary, purchasing their first home, car, and putting money away for a rainy day.
When President Reagan took office, job security no longer existed and the country has never recovered. Many across the country do not have a savings account. They are working to keep their checking account from overdraft fees. Learning new spending habits and sacrificing can make all the difference.