Consumer Reports And Tips
Save Money At Home - 7 Great Ways To Do It
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Almost everyone tries to save money to last them through an emergency, such as
becoming unemployed, getting seriously ill or having a bad accident. The sad
truth is that most people don't have such reserves of funds and when disaster
strikes, it is very tough on everyone in the family, not just because of changes
in income, but often because of the extra associated costs, like medical bills.
Sometimes people overlook the small ways to save and give up hope by
trying to save unrealistic amounts in a short space of time. It would be very
nice to save several thousand dollars in a couple of months, but the truth is
that most people will not be able to do that. However, saving a few thousand
over a longer period, such as a year, is quite possible once you acquire the
habit of saving small amounts regularly.
In addition to actually putting
money into a savings account, don't forget that spending or using less is also
saving. Although you are not adding to the amount you have, you are using less,
so have more available for other things you need to buy. Cutting back is mostly
about forming new spending habits in your day to day life. Start with a few
changes; do them for 21 days as this is the accepted length of time it is
believed to take to make a new action become a habit.
Don't think it is
too late to start saving because you are too far in debt, don't have enough
income, are too old or too young. Saving and reducing spending can make a
difference to everyone and is an especially valuable gift to pass on to
children.
7 Specific Strategies
1. Start by making a list of all
your expenses, sorting them into weekly, fortnightly or monthly, to match up
with the time frame when you receive your income. Make sure you include items
you pay less frequently and calculate pro-rata how much belongs in each pay
period. It is fairly easy to remember to include things like food, electricity,
gas, car expenses, but you also need to include things like eating out, drinks
or buying treats for the kids.
Compare your expenses list with your
income, work out a rough estimate of how much you can realistically save and
then get into the habit of putting that amount away first off when you get
paid!! Yes, first, not last. A suggested amount to save is 10% of your take home
wages or net income, but you must choose a realistic figure for your situation
otherwise you may be too easily discouraged and give up.
2. Keep track
of everything you spend by writing it down, especially to begin with. Include
every cup of coffee that you buy, every ice-cream, every magazine, every lunch
you buy instead of making at home or every meal from Macdonald's. These little
expenses are the ones that add up and often blow the budget. When you see on
paper (or on the screen) how much all these little expenses cost, you will be
more motivated to cut back and after cutting back and you see the savings
compared to before, it gives encouragement to keep going.
3. Time and
plan shopping trips. Make a list of what you need and just buy the things on the
list. Never go food shopping when you are hungry because that's the time you
will be most tempted to buy quick fixes such as takeaway dinners, cakes or
sweets.
Make yourself wait a little while before buying non-essential
items, If you still need it after waiting, then include it in the budget. Plan
expensive purchases, such as shoes and coats to tie in with seasonal sales if at
all possible.
4. Eat at home as much as possible and cook meals from
scratch. It doesn't need to be too time-consuming - there are plenty of recipes
for quick-cook meals using cheap and fresh ingredients. By buying seasonal fruit
and vegetables, you can cut down on food bills and have the added benefit of a
healthier family because they won't be consuming as many of the preservatives
and chemicals that are added to so many pre-prepared foods these days.
Yes, it is nice to relax and have coffee at a restaurant or coffee shop,
but the cost of that beverage is probably ten times what it would cost to have
one at home. There is no need to cut out all such treats, just cut back.
5. Buy in bulk when that suits your circumstances; sometimes a few
neighbors or friends can pool their funds to get bulk bargains. Check out
bargain bins when you enter stores, but only for items you need now, not for
those you might need some day! Use any coupons that come your way, but again,
don't buy something just to use the coupon! Only buy if you need now or soon.
6. Reduce your use of credit cards as much as you can. It is just too
easy to put something on the card, but all these purchases add up and credit
card interest is a killer! Sometimes you can bargain with a credit card company
for a reduced interest rate, so if you think you can do this, give it a try.
Even a half a percent can make a big difference over a year.
7. Plan
small rewards or treats when you achieve your savings goals so that the whole
saving, budgeting idea is not too tough on everyone. Don't splash out on rewards
though! That would defeat the purpose of saving in the first place.
Saving money is mostly about self-discipline, making small savings
regularly and sticking with it, not giving up when something comes along to
upset all your plans. If this does happen, be kind to yourself and just start
again, keeping on track when you can.
Don't spend too much time thinking
times are tough and don't develop a poverty mentality just because you are
saving. Focus on what you do have and not what you do not have; you'll be a much
happier person and more likely to succeed.
