Custom Search

Save Money

How much should you save

An excellent goal is to save ten percent of your monthly net income.  Of course, not everyone can set aside that percentage, so if money is tight, begin with whatever you can afford, even if it’s only a few dollars.  Look on this type of savings as paying yourself, and get into the habit of paying yourself first as soon as you receive your pay.

Make Saving Easy

There are many proven techniques to jump-start saving:

• Set up a savings account as well as an every day account that you pay is paid into.  Use automatic transfers from the every day account directly to the savings account on the day that you get paid. What you don’t see you don’t miss.
• Save all or a portion of each raise you receive.
• Deposit bonuses, income tax refunds, and cash gifts from birthdays, holidays, or other special occasions into the savings account.
• Save all of your loose change. A quarter here and a dime there will add up.
• Once you’ve paid off your car or other installment obligation, start putting the same amount in savings.
• Save even if you have debt. If your debt carries a high rate of interest, you should pay this off first. Find a sensible balance. By saving even a little as you are repaying debt, you’ll start an emergency account, kick the habit of borrowing, and establish a savings routine.
• Consider consolidating your debt into one low interest loan and repay this as quickly as possible.

Avoid Spending Waste

• Avoid those stores, malls, and online retailers where you know you have a hard time controlling spending.
• Write a list of what you need before shopping, and buy only what’s on it.
• Reward your efforts with an occasional, yet affordable, reward.
• If you’re on the verge of splurging, seek the support of a friend who knows what you are trying to accomplish.
• Charge purchases only when you can afford to repay the balance in full by the due date.
• Use debit cards. They provide much of the consumer protection and convenience of a credit card without a bill at the end of the month, and because of the detailed statements you receive, you can track spending easier than with cash.
• Question each potential purchase to know if it is a want (nonessential) or a need (essential). Recognizing the difference between the two can help you avoid unnecessary spending and impulse shopping.
• Revisit your goals. By sacrificing those things you don’t really need today, you can attain your more meaningful financial objectives in the future.