These days, saving money shouldn’t be thought of as luxury or something to do “someday” – when you finally feel like getting around to it. The all encompassing, global economic crisis currently confronting everyone, at every level in society, has brought home the necessity of getting serious about saving. One of the positive outcomes of the recession and the current downturn is that many people have now gotten very serious about getting out of debt and building up their savings.
If you’ve been living from paycheck to paycheck for quite a while, it’s time to get a savings plan going for yourself. One of the keys to saving money is to first figure out places in your budget where you can eliminate costs. By reducing your monthly payments—the money that’s leaving your bank account–even just a little, you’ll make room for having some extra cash, some of which you can start to save.
Start by taking a hard look at all your monthly expenses and isolate the ones that can be eliminated or lowered.
Image by Getty Images via @daylife
Call companies you do business with regularly to see if they are open to lowering your payments. Consider alternatives to some of your pricier habits; can you live with frozen pizza instead of going out? Can you color your hair at home instead of at a salon? Even small cuts in expenses can add up. Get real about your spending and start saving what you don’t spend.
Set up an automatic savings plan at your bank. Have a certain amount ($50? $100) taken out of your checking a
ccount monthly and put into savings, just like another payment.
In a year, take a look at your savings account. You’ll be amazed and happy to see how much you’ve saved, just by paying a little more attention to where your money is going.