The old ways of saving up aren’t effective anymore – or we’ve just forgotten how to use them. In a world where debt relief and modification are buzzwords, here are ways to apply traditional budgeting strategies to get bigger savings. This way, you can get out of the cycle of living from paycheck to paycheck.
Be conservative when calculating your expenses. Always add a bit more to your estimated expenses. Think of it as leeway for unexpected expenses or miscalculated costs. If you can save up at least $30 a month this way, it will come up to $360 a year. You should put this in your savings account, for the so-called rainy days.
Automate your savings. If your bank allows for automatic monthly transfers from your checking to your savings account, then arrange for them to do so. If your employer has a system for depositing a part of your paycheck directly to your savings account, then do take advantage of it.
Control your “wants.” A good rule of thumb is if you want to buy something that isn’t necessary, hold off for at least a day or two, then think about it again. That way, you won’t buy on impulse. If you want to strengthen your resolve, don’t bring the plastic. Bring cash. That way, you will be limited by the cash at hand, so to speak.
Don’t forget the power of home entertainment. Instead of expensive dates and hanging out with friends in bars, set your house up for hanging out. If it’s a date, learning how to cook your special someone’s favorite dish will not only be more romantic, it will also teach you how to cook, and you can use this skill as part of your savings strategies.
If it’s hanging out with friends, imagine the bigger savings you will have if it’s down to just buying the beer (or wine), the chips and having some good music or movies playing. Take turns hanging out at each other’s homes, and chip in for the expenses.
Show the money – literally. As mentioned before, one way to sidestep debt relief and modification that happens when you overuse your credit card is to live on your actual salary. Calculate your expenses for the week, and add a bit of padding, then withdraw it from your ATM. That way, you can save up more, and the same time you can better resist the temptation to use your credit card.
Have a piggy bank. This is no joke. Put smaller bills and coins in a piggy bank. Put what you’ve saved up in the bank every year. You’d be amazed at how much you’ve saved.
Sign up at the box on the right for more information on options for bigger savings through budgeting and savings strategies.
Add A Comment