Saving Tips You Wish You Had Known Years Ago
Saving money can be tough—really tough. It’s very easy to lose sight of our goals, or imagine we need the money this month, and not later on down the road.
To help our readers out, we created a small tip sheet that you can print out and keep on your refrigerator. Read these until you memorize them. They’re going to help you finally meet those savings goals you’ve always had but can’t seem to put money towards!
Tip #1: Know Your Spending Habits
This one is important. You can’t start saving until you understand what you’re spending. Write down all of your expenditures. Keep separate lists, one for bills, and the other for little things you purchase during the month. Add these two totals up and compare it to your total income.
Tip #2: Be Realistic About What Expenditures to Ditch, and Which to Keep
So you have your lists, and maybe you’ve started crossing out things that you can live without. Remember, you don’t need to be saving 20% of your entire income! Even 5% can yield fast results as long as you’re dedicated to that number. Also, start small and go from there. If you choose a high number and you can’t meet it every month, you’ll lose hope and go back to your old ways! Once you’ve had a few successful months and you’re feeling good about it, challenge yourself to save more!
Tip #3: Find Areas to Be Frugal Over
You know what you’re spending money on, and you’ve removed the easy stuff. Now, how can you reduce your spending even more? Have you checked to see if you can lower your interest rate on your mortgage or credit cards? How about your utilities, can you cut back on anything there? Most of this is easily accomplished online, or by speaking with one of our money specialists!
Tip #4: Even Spare Change Helps!
Change is annoying and no one knows what to do with it. So, find a big jar, and start throwing all your loose change in it. Don’t try to count it every day, just leave it alone. If you let it sit there for a year you’ll be amazed at how much money you’ll have.
Tip #5: Bonuses and Gifts Go Straight to Savings
Anything extra that you make should be automatically thrown into your savings account. We recommend this because extra money tends to create lazy spending habits. And saving is all about being regimented and focused. If you have extra cash, you’ll spend it. So, drop it into your savings account as soon as you get it. Don’t let it hang out in your cheque account where you see it every day!
Tip #6: Put the Money Someplace Where You Can’t Reach It
Create a savings account that makes it very difficult to get your money out. You don’t want to be looking at your savings every day. Add it to an account where it would take a few days to get the money out. That way no impulsive purchases are even possible without a few days of thoughtful consideration.
Tip #7: Have Debt? Ditch It BEFORE You Start Saving
It may not feel like it, but your debt is growing. Over the course of your debt’s lifespan, you can end up paying a huge amount of interest—more than you’d ever care to imagine. So before you start saving, you MUST get rid of debt. Take these tips in this article and put them to use paying off your debt. By the time it’s gone, you’ll have amazing saving habits and will start saving up for that next big purchase in no time.