By Nikki Phipps
We all want to save money, right. The problem is that many of us do not know how or we simply keep putting it off until a later time. Many of us do not have a formal savings plan, such as a savings account. Others feel it is difficult to save money when you simply do not have any extra cash on hand to put away. However, there are many secrets to saving money, and the first step towards financial success begins with a proper spending plan or budget.
You need a budget, and you need to adhere to that budget. Carefully figure out a suitable percentage of your gross income that can be designated strictly for savings. Generally, about 10 percent of your income is a good starting point; however, if this isn’t plausible, whatever amount you are able to sacrifice each week or month is fine. Something is always better than nothing. You could even ask your employer to deduct this amount from your paycheck and deposit it into your savings account automatically. After all, you can’t miss something you never get to see in the first place. Every time you get money, save some of it. For instance, if unexpected money comes your way, such as a bonus, tax refund, or miscellaneous income from hobbies, birthdays, or yard sales, put it into your savings account.
It always helps to set up attainable goals when striving to save money. These goals, like a down payment on a car or home, give you something to work towards and a viable reason to save today rather than waiting for tomorrow. When setting your goal, be sure to include a specific dollar amount and an adequate period of time for achieving it. If you do not already have one, set up a savings account. This is especially important as mixing your everyday funds from a checking account with money you are trying to save for reaching your goal simply does not work effectively. In addition, it helps if you get into the habit of carrying only the amount of money you will need for the day. This will cut out any ‘spur-of-the-moment’ shopping sprees.
Another secret to saving is knowing how to spend. Choose what you buy carefully and don’t be afraid to do some comparison-shopping in order to get the best price. Buy used clothing whenever possible. If you must buy new, buy in the off-season. End-of-season sales are great ways to save money. These usually offer huge discounts on many items. For example, spring and summer merchandise usually goes on clearance towards the end of summer, while fall and winter merchandise usually goes on sale following the holidays. Buying items when they are out of season helps too. For instance, whatever you need for summer, buy it during winter such as lawnmowers, grills, and other outdoor stuff. In summer, buy all of your winter items.
Try alternative shopping as well to save money. You don’t have to shop at all those high-priced, fancy department stores. Shop instead at salvage and thrift stores, consignment shops, warehouse clubs, yard sales, dollar stores, and even online. Likewise, when it comes to grocery shopping, try purchasing store and generic brands. There are a couple of places outside of traditional grocery stores where you can easily shop and save money as well. Of course, there’s Wal-mart, a great place to shop for less, but another good choice is Aldis. This is quickly becoming one of the largest, low-cost supermarkets in the world. In fact, not only can you reduce your weekly grocery bill by 25-50 percent, but their products are not too shabby either. Use coupons whenever you can for extra savings on top of what you are already saving by shopping at one of these places. It also pays to shop alone. Other individuals, like children, enjoy filling up your cart with unnecessary items.
Utilities can consume a great deal of cash each month, from electricity and gas to water and phone service. Turn off your lights and unplug any unused electrical appliances. This will drastically cut back on electricity consumption. If you are going to be purchasing new appliances, especially air conditioners, refrigerators, and furnaces, make sure they are energy-efficient. It will also cut costs if you frequently keep your appliances clean, especially the furnace. Replace filters every three months as well. You could be wasting hundreds of gallons of water each day simply from leaky faucets, running toilets, etc. Have these fixed and see the difference. Ask your phone company for a flat rate service plan to save money on your bill each month. Examine your phone bill to see if you have any services that you don’t really need.
The secret to saving money includes having both a budget and savings plan. Both of which must be strictly adhered to. It will also help knowing when, where, and how to shop for all the best deals. Everyone wants to save money, so what are you waiting for, get started now.