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Money Saving Ideas You Can Use Today

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Money Saving

Why Money Saving Is Important

While investing is vital to long-term financial success, a good money saving strategy allows you to keep enough cash on hand to have freedom of choice. With enough savings, a sudden job loss or downturn in the economy is not as traumatic. With enough cash on hand, unexpected emergencies will not cripple your vacation plans. Of course, the more you have saved, the more you have to invest.

That said here are several ways to save money in day-to-day life starting now.

Money Saving Do’s

• Do move at least some of your savings to online bank accounts. These tend to pay slightly higher interest rates and usually have no additional fees. In addition, many online banks have no minimum balance requirements, and are accessible 24 hours a day. You’ll save money on gas and bank fees.

• Do develop some type of “bucket” savings schedule. Designate a specific percentage of your earned income to the “untouchable” savings bucket. This is money that is left alone no matter what happens. Next, designate a certain percentage to the “dream” bucket. This is the place for high risk/high reward investments, expensive toys, etc. You can choose a third bucket if you like, but typically, the “untouchable” account gets the first deposit and everything else is subordinate.

• Do cut expenses wherever feasible. Maybe it’s the cable bill, maybe it’s eating out or shopping (it usually is). Most of us can significantly reduce our day-to-day expenses with little actual sacrifice. Think a $150 monthly savings doesn’t add up? That’s $1,800 a year. Instead of spending it, put that $150 into an interest bearing account for a few years and see just how powerful saving a few dollars can be.

Money Saving Don’ts

There are a few ways to sabotage your money saving efforts quickly. One is to ignore credit card debts and save the money which should be going to pay those bills; ditto for similar bills. Another way to find yourself dipping into your savings before long is to be too stringent. Be sure to make allowances for recreational activities, nights out and the occasional trip. If the money saving budget is too strict, you won’t maintain it, especially if you have a family or significant other. Save regularly and live well!

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