Southeast Rural Community Assistance Project's Savings Tips
·
Save your loose
change. Putting aside fifty cents a day over the course of a year will allow
you to save nearly 40% of a $500 emergency fund.
·
Keep track of
your spending. At least once a month, use credit card, checking, and other
records to review what you’ve purchased. Then, ask yourself if it makes sense
to reallocate some of this spending to an emergency savings account.
·
Never purchase
expensive items on impulse. Think over each expensive purchase for at least 24
hours. Acting on this principle will mean you have far fewer regrets about
impulse purchases, and far more money for emergency savings.
·
Use debit and
credit cards prudently. To minimize interest charges, try to limit credit card
purchases to those you can pay off in full at the end of the month. If you use
a debit card, don’t rely on an overdraft feature to spend money you don’t have.
With either approach, you’ll have more money available for emergency savings.
·
Are you looking
for an effective way to establish a budget? Beginning on the first day of a new
month, get a receipt for everything you purchase. Stack and review receipts at
the end of the month, and you will clearly be able to see where your money is
going.
·
It pays to
practice preventative dental care, since a good cleaning routine helps prevent
fillings, root canals, and dental crowns, which are expensive and no fun.
·
Most people don’t
track what they spend and may not realize when expenses add up to more than
their budget can handle. To keep track of what I spend, I put what I think I should
spend for the month on transportation, food, entertainment, etc., into
envelopes. This helps me avoid buying things I don’t need, and what’s left over
goes into saving.
·
Take advantage of
discounts and/or incentive programs provided through your employer. For
example, the company I work for offers discounted rates for computers, fitness
center memberships, movie tickets and passes to summer festivals. Check your
corporate intranet or talk to your human resources representative. And don’t
forget the best deal of all – investing in your 401 (k)!
·
One way to
establish a savings discipline is to “save” an amount equal to whatever is
spent on nonessential indulgences. Put a matching amount in a cookie jar for
expenditures for beer, wine, cigarettes, designer coffee, etc. If you can’t
afford to save the matching amount, you can’t afford the $4 super almond
low-fat latte.
·
Take the amount
the item costs and divide it into your hourly wage. If it’s a $50 pair of shoes
and you make $10 an hour, ask yourself, are those shoes really worth five long
hours of work? It helps keep things in perspective.
·
Aim for
short-term savings goals, such as setting aside $20 a week or month rather than
long term savings goals, such as $200 over a year. People save more successfully
when they keep the short-term goal in sight.
·
Save money by
buying items online, in bulk. Some companies even offer free shipping on large
orders. Clearance items are sometimes available, and good savings can be found
on non-perishable groceries and diapers. This saves time and money!
Courtesy of Southeast Rural Community Assistance Project, Inc.
