 |
| |
|
|
|
|
To Save Big Dollars, Commit to a Little Change
The MMI Online Articles are designed to inform, assist, educate and alert consumers.
| |
|
|
| |
| |
Consumers who are dealing with debt may feel that there isn’t a dime to spare. Yet, financial experts agree that establishing a savings cushion can make the difference between a minor financial setback and a major financial disaster. In fact, the experts at Money Management International urge consumers to save enough money to cover three to six months living expenses. If you find the concept of saving money challenging, you aren’t alone. Personal saving as a percentage of disposable personal income has dipped into negative territory in recent years.
The key is to start small. For most people, financial health doesn’t depend on how much they earn, but how much they spend. To find out where your money is going, start carrying a pocket-sized spiral notebook with you at all times, and write down every purchase you make, including the amount. Even if it’s only a soft drink from the convenience store, or a trip to the drive-thru at a fast food restaurant, record it in your notepad. After two weeks, review your notes and ask yourself if you really need all the things you buy.
Upon close inspection, most people are surprised to find out where their hard-earned money is going. If this is true for your case, don’t dismay—almost everybody wastes money to some degree. It’s important to understand that every purchase we make—excluding such absolute necessities as food, rent, and gas for the car—is a choice. The America Saves coalition offers the following examples of how making some small changes can save you an impressive $150 per month.
| |
|
| Tip |
Monthly Savings |
| Save $.50 in loose change | $18 |
| Cut soda consumption by one liter a week | $ 6 |
| Bring lunch to work | $60 |
| Send one free E-card per month instead of buying a card | $ 4 |
| Buy grocery store brands | $10 |
| Use fewer phone features | $10 |
| Eliminate premium cable channels | $20 |
| Borrow, rather than buy, one book per month | $15 |
| Hand wash, rather than dry clean, one shirt per month | $ 3 |
| Comparison shop for gas (saving an estimated $.25/gallon) | $ 4 |
| |
|
Finally, in addition to making small changes, resolve to boost your savings by including all of your "windfall" money. This “free money” includes increased income from a pay increase, birthday gifts, insurance settlements, escrow overages, tax refunds, and inheritances.
|
|
Feedback Forum
Share your comments with us about this information.
Click Here To Use Our Budgeting Calculators
|
|
|
|
