Saving money is tough when your focused on just paying your bills – but there are some steps you can take to find extra money to save. Here are just a few suggestions:
Create a Realistic Budget – In order to save you have to know where your money goes. For one month, track every expense. Add it all up and compare it to your total income.
Trim the Fat – Look for ways to trim expenses. Identify those expenses you don’t really need – like those daily office snacks or morning latte, or that rarely used gym membership.
Save Spare Change – Each night empty your pocket or purse of your spare change and put it into a safe place. You won’t miss it, and it’s amazing at how quickly it adds up.
Augment Your Income – Chances are you can add to your income with a passion or a hobby – maybe you’re a good writer and could write blogs, or help others with social media. Maybe you have other skills like photography, babysitting, baking – people will pay for services they need, but don’t have the time or talent to perform. If you don’t have a passion or hobby – you could sell things you don’t use on eBay or Craigslist. Use your imagination and skills to boost your income.
Emergency Fund & Savings Accounts – Financial planners suggest you have 6 months worth of income in an emergency fund that you never touch, or only use in case of an emergency, and no buying a new couch or big screen TV is not an emergency. Once you have that in place start working on an interest-bearing savings account.
401K Account – If you work for a company that matches funds in a 401K account, take advantage of it. Put as much as you can into your matching fund account and let the company match it – it’s free money and will pay big dividends over time.
Saving money is a long term strategy. The best savings strategy is to get started right away, be relentless, and let time be your friend.