Small Steps to Boost Your Savings
Make saving your new habit
- Break a habit. Pick a habit that you can do without: smoking, last-minute purchases, candy bars in the afternoon—something that doesn’t give you much benefit and may even be of harm. Every time you resist the habit, put the money you would have spent into a cash jar or into a savings account. After a few months, you’ll be amazed at how much you saved.
- Make good use of your
automatic habits. When
you pay off a loan, put
the money you were paying
each month into a savings
account. You will keep
the same standard of living,
and your savings will just
continue to grow!
- Make extra payments on
your home. Paying just
$40 a month extra on a
$100,000 mortgage will
slash five years off your
loan!
- Save for retirement or
other goals right now.
Make a deal with yourself
to contribute to a retirement
or education savings plan
today. Even the smallest
amount will build up over
time.
- Sign up for the free Money Club Makeover, 21 Days to Boost Your Savings.
- Ask your friends about
savings ideas. Does anyone
have a great credit card
deal? Know of an outlet
store that’s a little
far away but has great
bargains? Use the Internet
to get great deals? Ask
around and see if you and
your friends can save money
together. It’s a
great basis for starting
a Money Club!
- Carpool. Call
co-workers who live near
you to coordinate a carpool
schedule for next week.
You can save lots of
money on gas and maintenance,
while gaining time for
reading or socializing.
- If
you have used CDs lying
around the house, call
some friends who might
want to exchange CDs with
you instead of buying new
ones.
- Join
a credit union. Many will
allow you to set up an
account by phone with a
very small deposit from
your debit or credit card.
You will then have access
to a host of services that
may include low-cost auto
and home loans and lower
insurance rates.
- If
you keep money in Certificates
of Deposit, shop the Internet
for higher yields. Try www.bankrate.com
for CD rates around the country.
The site features mortgage,
credit card, and other bank
rates as well.
- Here’s a fun one: Check out www.unclaimedassets.com or www.missingmoney.com to see if any extra money is waiting for you. Each year, millions of dollars in bank accounts, insurance policies, utility deposits, and government checks go unclaimed.
Use these saving tricks
- Use the Zen concept
of the raise that is
no-raise. If you get a
raise, don’t
spend it. Pretend you
didn’t
get a raise and put the
money into savings. Live
on the same amount as
before, and watch your
savings grow.
- Save your change. Every time you buy something with cash, use paper money. Break those bills! Save all of the change you get each day in a jar. At the end of the month, you will have $50 - $70 to use for savings or to pay off debt.
- Learn about home improvements.
Many local stores offer
courses in tile setting,
woodworking, spa maintenance,
and other home improvement
subjects. Even if you don’t
plan to do the work yourself,
knowing about the process
will ensure that you don’t
get ripped off by contractors
or maintenance people.
- Dress down more often.
You’ll save money
by choosing clothes from
your closet that are comfortable
and attractive, rather
than new ones that are
uncomfortable, though fashionable.
- Indulge yourself this weekend. Turn off the radio, television, and phone. Leave the magazines and newspapers on the shelf. Read books for pleasure, eat and sleep as you please. Have a “spa” weekend at home.
Resolve to save more
- Resolve to cut out one expense that brings you neither joy nor prosperity. Write your resolution on a piece of paper and post it prominently, so you won’t forget. Put the money that you would have spent into an envelope or a separate account, for savings.
- Decide one thing you
can do to master your money.
For example, when you take
cash from the ATM, vow
to keep track of your expenditures.
Or limit yourself to taking
money only once a week
at a specific time. As
you gain mastery through
your initial small step,
decide on an additional
action you can take. Step
by step, your financial
life will improve.
- To save time, consider
a gift card. The recipient
can use the card to buy
what they want, where they
want, when they want. Cards
issued by financial services
companies, such as VISA,
can be used anywhere, whereas
cards issued by specific
stores can only be used
for purchases at those
stores.
- Spend 15 minutes thinking of ways you could cut down on stuff and have an easier and more fulfilling life. What could you do to make your life simpler and less expensive?
