May 21 2009
Saving money in the midst of a struggling economy
Money today is hard to come by. In the struggling economy today, it is hard to pay the bills, much less think about saving. Many people had money saved for a rainy day and then it started pouring and the savings…down the drain.
So how do you save money in todays world? What is the best way to put away for the next rainy day when it’s still pouring, especially if you are living paycheck to paycheck? I have a few tips to help you out. Maybe you have heard them, maybe you have not. Either way, if you use them, they will definately help you get where you want to be.
A few months ago, I heard some money guru on TV talking about savings. It’s hard to save money when at the end of the month you have nothing left. She suggested the following.
#1 Pay your self first. Don’t save at the end of the month, do it first, before you pay your bills.
#2 Use cash, not credit. Growing up, I was always told, if you don’t have the money to pay for it, you don’t need it. When you use credit, what ever it is you buy, ends up being twice as much.
#3 Start a savings plan. This goes along with number one. This is the plan she uses:
Five dollar Savings Plan
Five dollars doesn’t sound like much. However, all those fives add up. Just like going to a major discount chain, you buy several items for “only” five dollars and when it’s time to pay, you are spending $100.
Since you are paying for things in cash, when you get your change, everytime you have a $5 bill, save it. Save every single $5 bill that crosses your palm.
I tried this last week. I had $360 from a paycheck. I always pay for everything in cash or with my debit card. I do not own credit cards. In one day, I had set aside $20 on five dollar bills. And that was just in one day. So I looked at it like this; if I only saved $20 a week for a year, that would give me $1040. If I put that money into a simple savings plan at just 3% interest, it would raise to $1071 and some change. in 10 years, only saving $20 a week, I will have saved $10,710. That’s not too shabby, huh?
Now these are my tips added to what the money guru had said.
#4 CLIP YOUR COUPONS!!! Walgreens will let you use their coupons and manufacturers coupons. Then, find a grocery store that still doubles and triples coupons. Just like the $5 bills, those small savings add up quick.
#5 Eliminate your “neccesities”. What do you have that is really a luxury? Like cable, gym membership, hair/nail appointments, yard/cleaning service, going out to eat, $5 cups of coffee, etc are all things that that are really and truly luxuries. Things that you can cut back on to save your wallet and keep you on budget. Do not live beyond your means.
That reminds me, make a budget and keep it. It’s easier to cut back when you see exactly how much you are spending.
Good luck and just remember you CAN save. But you have to make the decision to do it and stick to it.
