Saving Money: Priorities

Planning & Saving
on August 29, 2012

Most of us want to have more money than we do right now, and whether you are saving up for a trip or setting aside an emergency fund, there are definitely things that you can do. Saving money is not always easy, but to make sure that it is even possible, there are some tips and tricks that you need to know. When you want to save money, consider how you are going to do it.

Create a Budget

Not only does a budget stop you from spending too much, it also encourages you to learn more about your own finances. For example, there are plenty of people who do not know that they are not making enough money until they have started to budget. If your income is less than the cash you are spending for basic necessities, you cannot save money. This means more hours, better employment, and in some cases, both!

Cut Out Eating Out

One of the big areas where people lose money is through eating out. Eating out is fast, tasty and hot, but the truth is that you are paying a lot of money just for the service, rather than the food itself. Bring a sack lunch to work if you usually hit the cafeteria or the fast food place, and restrict family eating out to once a week. Make up a large batch of food on your day off, freeze it in portions and eat it the rest of the week.

Consider Loan Consolidation

Talk to a financial adviser, and discuss the idea of consolidating your loans. All of your loans, which currently require several payments every month, can be collapsed into one larger loan that will be paid off once a month. While this means that your bills may take longer to pay off, it also means that you will have more cash to spare at the end of the month. You can save this cash, and put it towards other things.

Remember Your Entertainment Budget

Unless things are really dire, you should still have an entertainment budget. Most people do very badly with having no discretionary spending money; they can do it for a little while, but then they have a bad day and end up spending right through their savings. Instead set aside a small amount of money every week or every month that you can use exactly as you choose. Go out for food, go see a movie or spend it on a computer game. This is a good way to stay sane while you are trying to work on saving money.

Balance Your Checkbook

With the advent of online checking accounts, it becomes very easy to withdraw money. However, the old checkbook system definitely had an advantage in that it forced you to keep track of your finances. Balance your checkbook to make sure you know how much money you have coming in and out.

When you are looking into saving money, be aware of all the ways that you can do so. Start with one or two tips at a time, and then add as you can.

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