Because of today's economy, many people are looking for ways to save what little money they have. Many people across the nation are just not ready financially for the years ahead. Thousands of people have lost their jobs and thousands more job cuts are expected before the end of the year. We all find it hard to think about our savings when we're faced with paying bills every month. However, taking small steps to improve the health of your savings can help you be ready for the next economic downfall, your retirement or unexpected emergencies.
Here are some tips and advice that will help you stretch your budget and start saving:
· Small steps make a big difference - Many experts say you should save 10-15% of each paycheck and other income. But let's be realistic. It's almost impossible to save that kind of money and pay your monthly bills, too. So, if that's not possible for you, then save less. Something is better than nothing. Choose an amount that won't bust your budget. Whether you choose $50 or $100 a month, make sure you pay yourself out of each paycheck until you have that amount. Each time you save $100, go out and buy a savings bond. Savings bonds accumulate value usually after five years. So, you're actually making more money. You can also invest your money in several other ways. A money market account will help your money add up and you can withdraw it if an emergency arises and you really need it.
· Lose the loans - If you have student loans, a car loan or credit card debt, pay a little extra on each one until they are paid off. Credit cards can be our biggest enemy, but we all need them to have any credit at all. So cut up all your credit cards except the one with the lowest interest rate. Then, try not to pay for anything with it that you can't pay for in full on your next bill.
· Compare - If you don't have a credit card and are looking to get one, shop around for the better value. Credit card rates vary with each company. If you take advantage of introductory low offers, remember to make your payments on time and in full. Those rates will go up dramatically when the introductory time is up and you'll find yourself paying much more than you should. If you already have a credit card, call the card company and ask them to lower your interest rate. You'll be surprised at how many will lower your rate so you can make your payments.
· Use your job - If your place of employment offers a 401k plan, take advantage of it. Contribute the amount your company will match or less. Many companies will often contribute up to 50 cents on the dollar. Here's an example: if you contribute $100 a month, you make $50. If you contribute $1,200 a year, you make $600. That can add up to very big savings for your retirement.
· Put it away - After paying your bills each month, you may have a little left over. Put that directly into your savings account immediately. Even if it's only $10. Every penny counts when saving.
· Never give up - Everyone has unexpected expenses that come up. These can be doctor bills, hospital bills, home repairs, car repairs, appliance repairs and more. You may have to take some of your savings out to help pay for these items, but don't let that discourage you. Consistently applying these basic tips will help you have a savings that you can depend on over time. When your savings begins to grow dramatically, consult a financial advisor to learn how to get the highest return on your money.
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