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To Save Big Dollars, Commit to a Little Change
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For more information contact:
Kelly Rote (713) 394-3201 |
Release Date: January 18, 2006 |
Consumers who are dealing with post-holiday debt and dreading the pending tax season 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 of 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 as low as 1 percent 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 you, don’t worry—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 really add up.
Ideas Monthly Saving
Save $.50 in loose change $18
Cut soda consumption by one liter a week $ 6
Bring lunch to work $60
Send e-cards instead of buying a card $ 4
Buy grocery store brands $10
Use fewer phone features $10
Eliminate premium cable channels $20
Borrow books, rather than buy $15
Hand wash a shirt,rather than dry clean $ 3
Comparison shop for gas @$.25/gallon $ 4
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Monthly Total- $150
In addition to making small changes, resolve to boost your savings by including all of your ‘windfall’ money. Windfall money includes increased income such as money from a pay raise, birthday gift or insurance settlement.
“Making small changes in every day spending will add up to create a valuable savings fund,” said Cate Williams, vice president of financial literacy for Money Management International. “You’ll find far more satisfaction in knowing that you are financially protected than you would in having a four dollar coffee each day.”
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Money Management International, is a non-profit community service organization that provides confidential financial guidance, counseling and debt management assistance to consumers. MMI helps consumers trim their expenses, develop a workable budget, lower their debt payments and repay debts. Services are available by phone. To visit with an MMI counselor, call toll-free 1-800-762-2271- 24 hours a day, 7 days a week. Spanish speaking counselors are available. Consumers can also learn more by visiting the MMI home page at www.moneymanagement.org.
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