Budgeting Tips: 10 Things To Consider When Saving Money
Friday, February 17, 2017, 6:00 AM | Leave Comment
Getting into the saving habit is one one of the best things you can do for your life and your future.
Whether you are saving for a vacation or education, to get married or to send a kid to college, getting into the habit of saving money will make it easier for you to do the things you want to do with your life.
Saving money can seem challenging these days. With the economy still recovering and so many people concerned about the cost of living, saving for a rainy day isn’t always easy. It doesn’t have to be hard, though.
Consider these 10 important areas and before long your savings account will be growing.
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Start Small
You don’t have to start off saving thousands of dollars for a dream vacation. It’s ok to start small. Perhaps you’ll start by building up an emergency fund of one month’s expenses, or perhaps you’ll start by saving for an evening class you’ve been meaning to take, or a weekend away.
Starting small means you’ll see results quickly, and will be more likely to stick with the savings habit.
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Set Definable Goals
It’s much easier to save for a definable goal than to save “just because”. Get a clear picture in your mind of what you want to save for, and why. Do you want to make sure your kids can afford college? Are you looking to buy a new house or car? Save for retirement? Build a nest egg?
When you have a goal in mind, you’re more likely to keep saving towards it. Savings “just because” are all too easy to spend on other things.
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Create A Realistic Budget
You’ll find it much easier to save if you create a realistic budget.
Start by looking at your regular monthly expenses every month such as rent or mortgage and utilities. Now see what you’ve got left. This is the amount you have for savings, non-essential items, and fun items such as eating out and entertainment.
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Build In Savings Every Month
Now you know how much you’d like to save every month, you can build that amount into your monthly budget.
The easiest way to do this is to set up a series of money transfers into your saving accounts. If you know you want to put $100 a month into a vacation fund, set up an automatic payment. That way you won’t have to think about it, and the money won’t get absorbed into everyday spending.
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Watch Your Everyday Expenses
Everyday expenses can soon add up. Are there any that you could cut back on? Trimming the budget a little will boost your savings a lot. You might try eating out less, or cutting down on Starbucks coffee, for example. Look for discounts or promo deals from sites like BigLots to help make everyday luxuries a bit more affordable.
When it comes to necessary expenses like utilities, it’s always worth looking around to see if you can get a better deal.
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Be A Savvy Shopper
Shopping can soon make a big dent in your budget. Online sites like Steve Madden offer great savings compared to the high street. While you’re browsing for the best deals, don’t forget to check out mamma.com for coupons and promo codes so you can save more money.
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Know When To Spend and When To Save
The item you’re about to buy is only a good deal if you know you really need it and will make good use of it. Spending $100 on an item that used to retail at $250 is still $100 spent.
Before making a purchase ask yourself if you really need the item, or if the money would be better off in your savings. If you want to go ahead and buy, do it and have fun – but do look for deals and promo codes to save you some money.
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Get Some Investment Advice
There are so many ways to invest your money. From retirement funds to high yield savings to stocks, shares or bonds, there are many different ways to save.
The world of investments and savings can seem dizzying at first. Consider making an appointment with a financial advisor who can help you figure out the best solution for your income and goals.
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Use Different Accounts
Savings accounts aren’t one size fits all. That’s why it makes sense to have different accounts for different types of savings.
Your emergency fund, for example, needs to be in an account that you can access quickly without paying a penalty. Your retirement fund on the other hand can be in an account that earns more interest but isn’t so instantly accessible.
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Look For Credit Card Deals
You don’t need to shy away from credit when you’re trying to save money, but you do need to use it responsibly. Make sure you can afford to pay off your credit card every month, or you’re just building debt instead of adding to your savings.
However, if you can find a card that offers good cash back deals or rewards for sites you use often, such as Amazon, using a credit card can become part of your savings plan.
Saving for your goals and dreams is easy if you plan carefully and pay close attention to your financial health and savings accounts.
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