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It seems like it’s extremely easy to get into debt. One simply needs to have ok credit and just that like; one can get into thousands of dollars in debt. However, finding money to save appears to be a little more difficult. There are two basic ways to increase you wealth; either increase your income or decrease your expenses. The following are five things you can do this year to save money:
Automatic Savings
One of the best ways to save is to create an automatic savings plan. An automatic saving plan treats your saving account like another bill. It is not saving because you want to, but saving because it is a necessity. As a result, you will need to look at your savings as a bill, like all your other bills. In addition, before all other bill gets paid, you will need to pay yourself. One way to do this is to create a direct deposit from your paycheck into a designated savings account. One will also need to contribute to their job’s defined contribution plans, also known as a 401(k) or 403 (b). Many people are losing out on tax-free contributions and free money, (if your employer matches), by not taking advantage of your company’s retirement plan. Like a saving plan, you will need to set it and forget.
Buy vintage
One way to save money and look great is to purchase clothing from second hand stores. The Goodwill and Salvation Amy allow one to stay fresh on a budget. In many cases, the clothing from the Goodwill or Salvation Army is of high quality. Being creative in how you put your clothing together can help develop your own personal style and save you money.
No more movies
The average cost of a movie is $7.89, if you add popcorn and a drink you are looking at over $10.00 just to watch a movie. When taking someone out on a date, you are looking at over $20.00 just to watch a movie. One way to avoid such high cost for entertainment is to use other forms of movie distributions. You can substantially decrease your cost by using Redbox, which for only $1.07; you can watch fairly new releases. You can also use Netflix, which for $8.99 a month; you can also have access to movies. Both Redbox and Netflix are great alternatives to paying high movie cost.
Downsize
One of the greatest lessons the “Great Recession” has taught us is that less is more. Do you need 2,000 square feet if you live alone? Can you afford the lifestyle you are living? One observation is that Americans overindulge. We have the biggest houses, biggest appetite for consumption and biggest waist line. We love to live in excess like it is the American way. One way to save money is to free yourself of excess. Excess is having things you don’t need and can barely afford. Downsizing is recognizing your excess and making the hard decisions to reduce it. Downsizing is about looking at your total financial picture and seeing what is sustainable.
Watch the little Charges
One thing to watch for is the little charges that come here and there. These little charges add up big time. Therefore one way to save money is to watch the little charges that come in the way of saving. Give yourself the funds you will use for spending and stick to those funds. Little charges are a big threat to your financial future.
In summary, these tips will provide you with extra money in your savings account. Any increase in savings will assist you in becoming richer.
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