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Ways to Save Money
12 COMMON SENSE TIPS FOR SAVING MONEY
Saving money is important for so many reasons
We’d all like to have a big savings account that we could dip into whenever we wanted or needed to. Of course, when it can be difficult to make ends meet every month, the idea of saving any money at all can seem laughable. But almost anyone can save some money, and here are just a few reasons why everyone should create and stick to a savings plan:
- Saving money allows you to pay with cash for big-ticket items like furniture, appliances and TVs so you don’t get into credit card debt or have to pay interest.
- You’ll build an emergency/contingency fund to fall back on if you lose your job. It is recommended that you have at least three to six months’ worth of living expenses set aside for emergencies like this.
- Savings can help pay for essential health care if you or a family member gets sick.
- You can plan for major expenses like education, a new car and vacations, so you will not be unprepared or blindsided by the expense.
- A good savings plan can help you enjoy a comfortable retirement.
Small amounts can really add up
When you have only a small amount of money to save, you might wonder if it’s even worth it. It definitely is! Let’s say you started investing $100 a month (less than $4 a day) when you were 30 years old. Based on average stock market returns, you could have up to $180,000 (based on an approximate 9% annual rate of return) when you turned 60! But even if you’re not ready to invest in stocks, you can use a number of smart strategies to save money right now.
Saving fast facts:
12 money-saving tips
- Make a budget and stick to it. Learn more about how to make a budget.
- Enroll in a 401K retirement plan, especially if your employer will match your contributions.
- Pay off your credit cards whenever possible. A balance of $1,000 can cost you hundreds in interest every year.
- Get a package deal on your phone, Internet and cable and you could save a considerable amount each month.
- Brown bag it! Even cheap fast food lunches can add up to more than $1,000 a year.
- Discover your local library. You can borrow books, DVDs and CDs for free.
- Stop smoking! It’s healthier for you and your wallet: a pack-a-day habit costs about $2,000 a year.
- Toss your change into a jar or basket every time you come home. You won’t miss that 47 cents, but you’ll be amazed at how all those coins can add up.
- Make your coffee at home or drink the coffee at work. Don’t buy expensive coffees every day!
- Ask your doctor to prescribe generic drugs whenever possible.
- Always pay your bills on time to avoid added interest and late fees.
- Don’t hang out at the mall, where you’ll be tempted to spend money. Meet friends at a park or have a potluck movie night at home.