By Jennifer McDougall
No matter what your yearly income looks like, it’s always a good idea to save money where possible. For example, there could come a day when you need to replace an appliance, or you might want to take a family vacation with loved ones. If you prepare for a “rainy day,” you are less likely to be as overwhelmed by any financial burden as you would be without one. A rainy day fund starts by looking at your monthly budget, such as analyzing how much you spend on food, clothes, utilities, nights out on the town, etc.
Saving money with a purpose helps keep people focused on what they are saving for, motivating them to be disciplined in their budgeting practices. Ask yourself the simple question, “What do I need to save money for?” The answer could vary. As I mentioned above, it could be for a vacation or a backup fund if you need cash for a home appliance or car repair, pay off debt, or maybe the peace of mind in case you lose your job or your business takes a dive.
No matter why you choose to start saving money, what matters is that you start somewhere; you start today. You might be wondering how to get started. That is why we have these 10 tips to help you out.
- Create a savings account with your bank and start out with a small goal in mind.
- One or two days a week, avoid making unnecessary purchases for 24 hours.
- Calculate your purchases by the hours worked instead of the cost of the items.
- Unsubscribe from the company’s tempting marketing emails encouraging you to spend money at their store and any unnecessary auto-renewal services or products.
- Chip away at paying off credit card debt each month.
- Avoid making purchases just because the product may be on sale. If you do not need it, evaluate if it is really something you should spend your hard-earned money on.
- Go generic regarding prescriptions and supplements and use coupons when you can.
- Use less water and electricity at home to avoid paying extra money in utility bills each month.
- When purchasing airfare, check multiple sites for price comparison to ensure you’re getting the best deal.
- Don’t skip out on preventive healthcare appointments.