Tips to Saving

It may seem impossible to set aside a little bit of money every month, especially if you are living paycheck to paycheck, but it is not only possible, but imperative that you do so.  Below are a few tips and tricks to help you start saving money in a fast, yet effective way.  

Stop Spending

Find ways to cut spending wherever possible.  Perhaps you could make more meals at home instead of going out to eat for lunch or dinner, or take public transportation instead of driving.  Really evaluate what you spend money on and determine what things are needs and what things are wants.  

Pay Yourself First

If you are like most people, money burns a hole in your pocket,  and you feel like you have to spend it.  Don’t let yourself fall into this trap.  At the beginning of the month, do an automatic transfer to move some of your money out of your bank account into another one that you don’t touch.  Don’t wait until the end of the month to figure out how much you can put away, as you will have already spent it.  

Set Attainable Goals

Instead of simply saying “I will save more money” you need to decide exactly how much money you will save per month.  Make sure that your goals are attainable as well as affordable.  If you are saving up for something specific, make an action plan to help you save enough money.

Start Investing

Money sitting in a bank account doesn’t really help you much.  Find ways to invest your money so that your savings can grow.  Even if you put your money into a specific savings account, it will be growing faster than it would in a checking account.  Put your money into GIC’s stocks, bonds, etc.

Make More Money

If you are at a place where you are saving as much as you can, it is time to start making a bit more money.  If you have been with your employer for a while, go ahead and ask for a raise.  If you need to, get a second job to help you supplement your income.  When you make more money, don’t change your lifestyle and increase your spending, instead, put that extra money into your savings account.  

Save Your Change

Start a piggy bank so that you can save your spare change.  If you find pennies and dimes around the house while cleaning, pick them up and save them in your coin jar for later.  When you use cash to pay for things, keep track of your coins.  After a while your change will add up.

Downsize

Bigger isn’t always better, especially when it makes it so that you can no longer afford your home.  A smaller home typically means a smaller mortgage payment.  Start by getting rid of the things that you never use, by either giving them away or selling them.  After you have decided how much you actually have, you can determine if your home is the right size for you, or if you should downsize a bit.