« Buy, Sell, and Trade Your Unwanted Gift Cards | Home | The Festival of Under 30 Finance Is at Money And Values »
5 Easy Ways to Save Money
By Molly's Brother | December 14, 2006
Do you know how to save money? Do you know how to incorporate saving money into your daily life? Sometimes the problems people have with money is that they never discovered the small daily changes you need to make in order to get into the practice of saving money.
- Pay Yourself First Every pay-period, make savings automatic. Before you take money out for bills and expenses, pay yourself first. Most financial experts recommend that you put anywhere from 10% to 20% towards savings and retirement accounts.
- Pay Yourself Last Always pay yourself first, but try to pay yourself last, too. Just because there is money in your account at the end of the pay period, you shouldn’t consider it “extra” money. Just because it’s there doesn’t mean you have to spend it. If there is any money “at the end of the month,” then reward yourself and put that money in a special savings account you create for a specific goal.
- Round Up Many people across the Internet suggest that every time they write a check, when they record the check in their checkbook, they round up. So a check for $10.40 is recorded at $11.00 in the register. Apparently this works for some by not only providing a buffer in their checking account, but they take the money they “save” and dump it into their savings account at the end of the month.
- Save Your Raise This is a basic rule, but so often overlooked. When you get a raise, you should figure think about using that raise to pay down your debt or funnel that raise to your savings and retirement accounts. (Kira at PennyFoolish is dealing with this issue today, as a matter of fact.)
- Put Away A Dollar A Day People make a habit out of putting away a dollar or two away everyday and then using this as their “Christmas fund.” You’d be surprised at how easily it is to find a dollar burning a hole in your pocket. Just make sure you don’t raid the piggy bank for dinners and movies out. Be focused with this practice.
If you’re debt free, then create a way to make saving your money a priority in your life. As Dave Ramsey often says, “Live like no one else will, so you can live like no one else can.” All it takes are a few slight tweaks to your financial behavior and you’ll be looking at a healthier financial future.
Topics: Personal Finance |