You probably already know how important it is to have savings. But knowing something and actually doing it are two very different things.
One way to dramatically improve your overall financial health is to get into the habit of saving. Money emergencies always happen- and usually at the most inconvenient time. If you don’t have an emergency fund set aside to handle whatever comes up, you’re going to be forced to take on more debt every time an unexpected financial crisis occurs. The following suggestions can help you get started. Saving may seem hard at first especially if you’re new to it. You may not have a lot of money to put aside in the beginning but that’s perfectly ok. You just need to start.
1) Look at your budget. Cut out everything but the bare necessities. The more you can trim your monthly expenses, the more money you can put into savings.
2) Pay yourself. Make this a priority. Consider your savings like any other bill and pay it along with all the others.
3) Take advantage of Direct Deposit at work. Decide on an amount and have it taken out of every paycheck and deposited into a savings account. No muss, no fuss. Even better- you don’t even have to think about it.
4) Keep your change. Every night, put your loose change into a jar or box. At the end of each month, add up the coins and deposit that amount into your savings. It doesn’t sound like much but even a dollar a day equals $365 a year.
5) Control your spending. Use cash for purchases instead of credit cards. If you know you’re an emotional shopper, stay away from the mall and online retailers. Discover the feeling of being in control of your money rather than the other way around.
6) Get rid of things you no longer need or want. Have a garage sale. Sell items on EBay or Craig’s List. If you’re like most people, you probably have a basement or attic full of things that can easily earn you some extra cash. Sell them and put the profits straight into your savings.