By Brenda Weathers Hargroves
It’s easy to say what you are going to do. But don’t fall into that trap when it comes to saving. There’s no time like the present, so start saving now. No more excuses.
I get it. Saving might only be a dream because it seems you need every dollar you make to live on. Allow me to let you in on the secret.
The easiest way to save is to start with change. Throw your change into a jar every day. The amount you’ve saved when you’ve filled the jar will surprise you. Depending on the size of your jar, you may have accumulated enough to head to the bank to open a savings account. Fill the jar again and repeat. I’ve saved hundreds of dollars this way.
Tip #1: Avoid machines that charge for converting coins to dollars. You can usually get around this fee if you bank at a credit union.
Tip #2: If you’ve opened your account at a traditional bank, find out if they charge for this converting service. If so, get some coin wrappers and wrap while you’re sitting in front of the television. Better yet, wrap with your children. This is a good way to encourage them to save.
Tip #3: If you have a Bank of America debit card, start a Keep the Change account. The bank deposits the leftover change from each of your purchases into your savings account. You never see or miss this money, so it adds up painlessly. I’m not sure if BOA still does this, but when I had a KTC account, the bank matched my first-year savings and a certain percentage of additional savings each year thereafter. Other banks may have a similar savings tool.
Sock away actual dollars. If your finances allow, look at your current monthly income and decide how much you can easily save. Set up a direct-deposit method to have monies automatically placed into a savings account.
Seek other savings opportunities. What kinds of opportunities are I referring to? I find using the IRS as a savings vehicle represents an opportunity. If you’re managing your bills and have no other pressing expenses, deposit your full tax return into your savings account.
Take an honest inventory of your possessions to determine what you need. Sell what you can and deposit the funds into your savings account. You can also research legitimate sites that list unclaimed funds. I once recovered almost $1,000 from this resource.
Other ways to save. I say treat yourself to a new car once in your life. After that, buy used. New or used, consider your car an investment. Perform routine maintenance–regular oil changes, properly inflated and rotated tires, etc. Buy a good car and take care of it. You will avoid those nuisance car payments. I’m still driving the used car I bought in 2004. Haven’t had a car payment in 18 years. True, I’ve had to spend money maintaining an older car, but not as much as I would spend on monthly car payments. This benefit has allowed me to tremendously increase my savings.
Trading your talent or services is another way to save. You do my hair, I’ll give you a manicure. You let me stay in your house, I’ll babysit your children. Get the idea? No money exchanges hands, yet everyone’s needs are met. Stash the money you save into your savings.
While we’re on this subject, take my advice. Start preparing for retirement as soon as possible. You may not realize it now, but those golden years will be here sooner than you think.
No 40lk? Participation in your employer’s 401k plan is an easy way to save for retirement. But don’t fall back on the excuse that the company you work for doesn’t offer this benefit. Once you’ve accumulated a sufficient amount of funds in your savings account, seek advice from a financial planner about investment opportunities that will allow you to create a personalized retirement plan.
Two more savings tools. While bargaining is an often overlooked or frowned upon form of saving, it is an acceptable practice in many instances. Just don’t make a habit of attempting highway robbery. Offer a fair price. You have nothing to lose. And last, take advantage of offered discounts – especially you seniors!
Saving requires discipline. Successful savers live by two important concepts – 1) live below your means and 2) buy what you need, not what you can afford. Both of these statements are clear, concise and need no further explanation.
Combine everything suggested above and you will develop a viable savings plan. Look at you!
I’m always on the hunt for more ways to save. Add your suggestions in the comments.
Commenti