It's
the end of the month and you've just finished paying your
bills--rent, insurance, credit cards, utilities, car payment,
etc. And after everything is paid and your checkbook is balanced,
you see once again that there isn't enough left over to put
into savings. It's just too hard to find any extra money to
save, so your savings plan will just have to wait another
month.
Sound familiar? For many of us it does. But contrary to popular
opinion, financial security can be based on a very modest
income and saving money can be much easier than you think.
What it comes down to is knowing how you spend and learning
how to spend less than you earn.
Little Things Add Up
Many of your large monthly expenses are probably fixed, such
as your rent/mortgage, car or student loan payments. But it's
the variable expense category that can easily get out of control.
It's so easy to pick up a daily coffee and bagel, magazine,
or a new DVD because individually they don't cost much.
But if you pick up a coffee and bagel every day for $3.00,
over the course of a year that $3.00 could grow to almost
$90 monthly and $1,100 annually. The little things can really
add up and cost more than you realize.
Everyone Can Afford to Save Money
Finding money to save is easier than you think. If you decided
to make your own coffee and bagel in the morning, you could
save that $3.00 a day and put $90 dollars into your 401(k)
or IRA account monthly. The sooner you start, the faster it
all adds up.
Control Your Money
Of course, no one is recommending that you eliminate every
indulgence, because some of these small expenses enhance your
enjoyment of life. But everyone has some purchases they could
reduce to help reach their financial goals. Here are some
ideas that can help you control your money:
- Write down each expense. Try it for a week and
keep a record of absolutely everything you spend. You'll
begin to see how the little things add up.
- Only pay cash. It's a lot harder to hand over cash
than it is to use plastic. This helps cut down on impulsive
purchases.
- Wait a day before buying anything over $100. If
you really want it, then you'll go back to the store and
buy it. But there'll be times when you decide not to make
the purchase and you'll save yourself $100 or more.
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