Believe it or not, how much you save has little to do with how much you make and studies have proven this! It is time to put away the excuses; here’s a roadmap for finding money you didn’t even know you had.
That One Simple Word-Savings
When you hear that one, simple word, do you feel a deep sense of guilt? Of course you do – we all do. That is because, like most Americans, 75% of respondents said they knew that their savings, targeted for retirement, were insufficient.
That’s cause for distress, perhaps, but not nearly as remarkable as the discovery that how much you save now has very little to do with how rich you are, today. This is so true in fact, that the middle-income earners managed to save less than the lower-income earners in that same study. Now this is remarkable when you think about it. Those with less saved more! What is the secret to their savings success?
For those of us who scrimp and save endlessly and with so little to show for it, these statistics are both annoying and embarrassing! It also means you have no excuse for inadequate savings.
The bottom line here is this: You just have to save, regardless! That means for every $10 you earn, you MUST sock away at least $1 in savings. Does not sound to be too difficult, right? WRONG!
UNLESS you have an iron clad savings plan, you will not save a single red cent! The trick is in the purpose and the plan!
WHAT IS YOUR EMERGENCY PLAN?
ARE YOU READY TO START A GOOD SAVINGS PLAN?
You are ready but you feel at a loss as to how you will come up with that extra money. You are already barely eking out a living. You can manage if you train yourself to think differently. That is the first part of any good plan. You have to think right. If you don’t think right towards your money, you won’t be able to manage it.
Your First Step: Rethink how you think about money
Saving money is a calm state of mind. Before you can even begin, you have to say NO to all of the spending-and stop thinking that you actually need all the stuff you’re spending all of your hard-earned money on. Just don’t spend.
That is simple enough! Say NO to all of the excuses and reasons for why you feel you MUST spend. Tell yourself, NO MORE EXCUSES, PERIOD! The very next time you want to buy something, take the $50 or $100 out of your wallet, instead and stash it away somewhere. Do you see the logic? That’s why you call saving. You don’t end up with stuff; you end up with the hard-earned MONEY.
Another new way of thinking will be to think of frugality as your savior. Become a confirmed cheapskate and do as your most frugal friends do. Pay special note to the fact that frugal friends fix the shower curtain instead of buying a new one. Sit down with Depression-era relatives and ask about how they made ends meet despite even desperate times. You want to learn to economize.
The next step in rethinking is to become inspired. Spend all of your spare time online and search out those frugal Web sites. Look at “living cheaply,” “frugal living” and “voluntary simplicity.” You’ll find a ton of good Web sites devoted to living on less, such as: thefrugalshopper.com, simpleliving.net and frugaliving.com.
Learn to turn shopping time into activity time. Go for a bike ride, walk down memory lane, take the kids to the park; do anything and everything that you can to take your mind off shopping and spending. It works!
Step # 2: Time to Save!
There are any number of creative ways to live on less. However, you don’t want to make your life miserable. Here are some great ways to economize without missing quality of life.
Don’t think too much about it – just do it! Direct deposit is now your best friend! Your money is whisked away into your IRA, 401(k) or money market account-and you don’t have to do a thing to make it happen. Just drop by your payroll department and/or your bank and fill out the forms. Do it today.
Eat meatless some of the time. Go veggie. Prepare just three meatless days a week (without substituting pricey fish) and you could save $25 a week, which equals $100 a month, which equals $1,200 a year! Beans: You will learn to love them.
Play the money game. Whenever you get a $5 bill, put it aside for later. Alternatively, do the same with ones, with quarters or even all your spare change. You’ll have a nest egg built up before you even miss a nickel.
Never spend the extras. Save all of your income-tax refund, your holiday money from the folks, the $20.38 overpayment check from the telephone company and any other extras and save every penny.
Negotiate and Haggle. You will be impressed by who will drop their prices, fees and interest rates: airlines, hotels, credit card companies, and even computer/appliance/rug salespeople. Before you even think about paying full price: Haggle a bit first.
Re-evaluate your money before you spend. That dinner out for the family will cost more than you spend on groceries in a week. That fancy pair of shoes is worth half the cost of a commuter pass. Learn what your money is worth to you, and you won’t be so quick to dispose of it.
Don’t overpay on your taxes. Yes, you love to get a big refund from the IRS every spring. The fact is, though, you’re effectively lending money to the government and interest-free. Go through your tax return and see if you can hold out until Dec. 31 to maybe get a $150 refund. That way you can use your money NOW should you need it for an emergency and bank the refund when you get it later.
Decide to raise your insurance deductibles. Reassess each of the deductibles for your various kinds of insurance. If you can raise them at all, your premiums will drop.
Bring your mortgage costs down. Look at whether or not the rate is too high. If it is, look to refinancing – this will save you money. Now, let’s look at the private mortgage insurance (PMI) you’ve been paying because you didn’t have enough money to make a 20% down payment. If the equity in your home is greater than 22%, make sure that it is cancelled. It’s the law. Finally, pay up on your mortgage. If you can manage an extra $100 per month, you will save thousands in interest costs over the long haul.
Toss out those nasty, glossy catalogs. The best-known form of spending temptation known to man or woman is the catalogs. Sure they are fun and look good, but are they worth the risk of spending? Chuck them straight out into the trash.
Refuse those unnecessary fees. Like the $2.50 you pay just because the ATM is right there, right now as opposed to walking two blocks to your bank, where you don’t get charged at all every time you use your cash card. Alternatively, how about the late fees for returning videos? These really add up. Don’t forget those fat charges banks hit you with when you write a check that, well, bounces.
Clean it yourself. I’ve discovered a very cool trick: When a clothing label says, “Dry Clean Only,” I wash it. On the other hand, dab out that little mustard stain with an old-fashioned cleaning device cleverly known as a sponge.
Don’t pay for a pro. If you can fix the neighbor’s garage door and she can paint the kitchen: go for it and save.
Put your raise in the bank. Put that tiny 3% to 5% boost in the paycheck on your direct deposit and live on your previous salary.
Pay smart for long-distance. Evaluate all of the different telephone plans for value. Pay attention to what you are currently paying per minute. Some dial-around codes or cheap calling cards (one without a surcharge per call) may give you a better rate. Not only will you save, but also you may find you won’t need to speak to Alvin in Schenectady so often.
Just buy the basics for the pets. Say no to pet pampering. Does your dog need those t-bone snacks? Does your cat need that rabbit-fur-lined toy? Probably not.
Vow never again to pay full price. The next time you must shop, hop onto the World Wide Web. Look for eBay, half.com and craigslist.org for excellent sources of “lightly used” goods-everything from books to jewelry to office furniture-even the entire first season of Star Trek on video.
When you are focused on being savings minded, you’re thinking about money changes. Before you know it, you have substantial savings.
Related posts:
- 7 Serious Ways to Save Money – Not for the Faint of Heart
Do you truly want to save? Take a serious look at how you spend and then change it. Quit smoking those cigars, take in a roommate, park your car-and you’ll save as much as $10,000 a year. It really is just as easy as all that! Are you finding it... - Some Tips to help you save
1. Don’t settle for interest checking. Have a separate savings account that can’t be as easily accessed as a checking account. 2. Keep your savings in a different bank – one that’s off your regular route, or perhaps even in different town. That way you won’t be tempted to dip... - Yes! You Really Can Save Money
Sometimes, saving money may seem impossible. You buy groceries on Monday, pay bills on Tuesday, and by Wednesday your paycheck has disappeared. However, if you establish a savings plan, you’ll “find” money in places you’ve never thought to look! If you’re like most American families, you wait for “extra” cash... - How to Save Money on Your Wedding – Even During a Down Economy
Weddings are expensive to plan at anytime, but during the current economy, it can seem downright impossible to pull off the perfect wedding. But have no fear brides, for there ARE ways to have your dream wedding without breaking the bank. Follow these foolproof tips to stay within your budget,... - Thrifty Ways to Save Money
Saving for an emergency need not be a chore when you are making a good effort to put money aside constantly. Be in a mood of saving and watch as that bank account accumulates. Instead of buying a new DVD, save money by trading with family and friends. Once a... - Vacation Apartments In Florence: Save Your Money And Feel At Home
Florence is arguably one of, if not the, most beautiful cities in the world. It is on virtually everyone’s “places to see” list and the best way to see a city like Florence is like a local. It is a city best taken in slowly, the same way you would... - Team Efforts That Can Save Your Relationship
Here are some cleverly disguised “team efforts” that can salvage your relationship before it’s too late. These are methods to be used when a marriage or live-in relationship splits up; they don’t really work for couples who aren’t living together. Clever ways to bring your ex back without them even... - PAY YOUR BILLS ONLINE AND SAVE
Nearly one-third of U.S. consumers pay their bills online, says Judy Wicks of CheckFree, the leading provider of electronic-billing and payment services. Probably the easiest way to pay your bills online is to use a safe, encrypted service-offered by banks, credit unions, brokers and companies such as AOL, MSN, Quicken... - Save Money On Your Energy Bills With A Home Improvement Project
If you are looking to tackle a new home improvement project in your home, you may want to consider making it one that will reduce your long-term energy costs. Sure, we all like home improvement projects that result in making a home more beautiful and attractive, but not all home... - How to Save Time, Money and Effort with Enterprise VoIP Software
Today’s economy requires all business to use all the enterprise resources most effectively. An IP telephony network is not an exception. From this article, you can learn how to: automate client request processing and release your staff to fulfill more complicated tasks with a voice portal; save your client time... - More Creative Ways to Save Money
Shop for clothing at thrift shops (especially for young kids). Look for gently worn or even new clothes for 1/10 the price of new (or less). Pay your bills online. It’s protected and you can save with stamps. Put your kids on the school bus rather than driving them to... - Love Life Passion Restored – Discover A Simple Secret On How To Save Your Relationship
You see a young couple holding hands and looking at each other as if they are the only two people in the world. It is obvious they are very much in love. You feel a twinge of sadness as you recall how you and your partner were also once so... - Why a Home Solar Panel Will Save You Money and How You Can Get One for Free
What is a home solar panel how can it save you money? In short, solar panels are a viable and eco-friendly option for homeowners who want to heat and cool their home efficiently using the sun... - 5 Great Ways to Save Time with Enterprise VoIP Integration
The 3 main goals of today’s business are effective client service; higher employee productivity; lower costs for telecommunications, network maintenance, etc. Here you can learn 5 savvy ways to achieve these goals by integrating IP telephony in your enterprise IT infrastructure. 1. Process Your Client Requests Timely With Maximum Effectiveness... - Save Time – Boost Productivity with Knowledge Base Software
Even in an era often referred to as the “Information Age”… keeping track of information can be a daunting task. Companies are moving away from traditional paper documentation for internal policies, references and documentation. We are also seeing a growing trend for companies to provide their customers access to information...