Five Ways to Save More Than You Spend
Is it just me or do paychecks seem to be spent as soon as we get them? Then you look around and wonder where the money went. We have probably all had that problem at one time or another. Here are five ways to help you save more and spend less each month.
1. Have a financial plan. We all need one. Plan to save or you won’t save anything at all. Before you spend a dime on anything else, put aside ten percent of your paycheck at least once a month. It would be ideal to do it with each paycheck that you earn in a month, but sometimes that is not possible. Start with a goal of one paycheck and work your way up. To keep from forgetting, you can have the money deducted from your check and sent to a savings account each pay period. That way, you don’t even have to think about it. It is done before the rest of the money is deposited in your checking account.
2. Grocery shop with a shopping list. A good shopping list will keep you from going into the store needing one or two small things but leaving with several carts full of things you never did and never will need. A list keeps you focused on what you need and blocks out what you don’t. Make a list at home based on what you see is missing from kitchen cupboards and cabinets. Keeping a running list of the things that you need on the refrigerator will help you make sure that all the essentials make it onto your grocery list.
3. Clip coupons. Coupons are generated mostly for the grocery store, but department stores have store coupons that offer a percentage or a specific dollar amount off of your purchases. Get that sweater at the end of the season when the store marks clothing down forty percent and offers additional coupon savings. Don’t shop at a store just because it has a coupon. Chances are the price has been marked up before the coupon is applied to make you think that you are getting a deal. Only use coupons for items and stores that you frequent. Stores that offer free discount cards also have weekly specials that, when combined with a coupon, could save you even more money.
4. Don’t impulse buy. The first time you see something expensive like an appliance, some furniture, or a car is not the time to buy. Instead of making rash decisions, take time to investigate the prices at a few different stores and make an informed decision about where to purchase the item you want. If the thing you want isn’t really necessary, giving yourself some time to evaluate prices might save you from buying it at all.
5. Reward yourself. Spending money on something that you want can be thought of as a reward and a privilege earned. Make a list of your “wants”. Prioritize them and save until you can afford to get it.
While saving up to buy the first thing on your wish list, you will be building up your savings account, preparing it for a dream purchase. Keeping your goals firmly set in mind will help you reach them faster.
Saving money is a great habit to form, no matter how you look at it. You can strengthen your finances, look forward to purchasing things you really want, and feel confident in being ready for unexpected expenses as well.
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