Quick Tips to Saving Money

Saving money is always hard but you have to make it a priority.  The first thing to do is take a close look at what you spend every month.  Keep track of everything you spend in a month and at the end of the month take a close look at what you've spent.  You have to change your spending habits and this is where it begins.  Find every place you can save a dollar because you will need it.  Once you have reviewed your expenses, set a target amount of how much you will save every month.  Then you can begin the action items listed below:
  •  Your first priority is to put money away as an emergency fund.  This account should cover around 6 months of expenses.  This will help you cover any expenses in case you encounter a life changing event.
  • Pay off all of your credit cards.  The interest rates on credit cards can be outrageous.  Start with cards that are close to being maxed out and the cards that have the highest interest rates.
  •  Avoid paying late fees, so do not procrastinate on paying your bills.
  • Start paying with cash or your debit card as this forces you to only spend money you have.
  • When you are purchasing new items ask yourself one question; Do I really need this or do I just want it?  Be careful of brand names, if you can get the generic brand much cheaper go for it.  This goes for everything from clothing to grocery store items.  If the generic brands don't work out you can always switch back to your name brand items.
  • If your job offers a 401(k) then make sure you put some money into it.  Your money can  grow much faster in a 401(k) than in a savings account.  The taxes on the money you put into your 401(k) are deferred until you retire. If your employer does 401(k) matching then make sure you contribute enough money to get a full match.
  • If you get a raise at work put that new income towards your existing debt.  You won't miss what you never see.
  • Check savings accounts on-line, they can offer much higher interest rates than your traditional savings account.
  • Take your lunch to work.  This will take some planning so plan out your lunches at the beginning of the week.