Monday, March 2, 2009

A Savings State of Mind

March has come in like a lamb, and rightfully so. With the winter we have endured this past season - we all deserve a break! Have you noticed how a bit of sun can perk up even the grumpiest of people? However, as the old saying goes "in like a lamb, out like a lion" - lets all hope that this does not hold true in 2009.

Speaking of getting a break, we know everyone is feeling the pinch of the economy, so its no surprise that we've had many customers asking how they can save during these difficult times. What do we tell people? Start saving now and stick with it. Just by making a few changes to the way you shop and save can make a huge difference.

First, set a few short-term and long-term financial goals to work towards, like a down payment on a car or home. Include the dollar amount and a time frame for achieving the goal. It's much more motivating to save when you know what you're saving for.

Set up a separate savings account. If you mingle your savings with your regular checking account, you'll almost certainly dip into your savings and may never pay them back.

If you don't already have a written budget that includes tracking your expenses each month, begin one now. Writing a budget will allow you to get a handle on overspending. No matter how much money you make in a year, you need a budget. If your expenses exceed your income, it's time to cut back! Make a list of things you can live without - and start weeding out these items. Do you really need three different magazine subscriptions? When going window shopping - don't take any cash with you, why be tempted? Skip going to the movies and rent one instead. Do you eat lunch out everyday? Try bringing a sack lunch a couple days a week. Walk to work instead of driving - good for you, and your pocketbook! How about skipping your daily specialty coffee at over $4 and make your own coffee at home? Buy generic on household products instead of name brands. The money you can save on "wants" will really add up over time.

If possible, have your employer deduct a set amount from your paycheck each pay period and deposit it into your savings account automatically. This is an easy way to increases your chance of success with automatic deposits or transfers.

Whenever unexpected money comes your way, put all or most of it into your savings account. Bonuses, salary increases, tax refunds, rebates, overtime pay, income from hobbies or yard sales can add to your savings account nicely without requiring additional cutbacks.

Following a few of these tips will leave you with a substantial chunk of change - just stay in the savings state of mind!

No comments:

Post a Comment