Saving your money

 

So now that you know more about budgeting, its time to learn more on how to save. Have you ever wanted to buy something really nice, but could not because you had already spent all of your money? When you think of what you spent your money on, was it needed? Did you enjoy it more than you would the item you can no longer afford? Asking yourself these questions are all a part of managing your money. The ability to do things we want and need to do all are a product of good money management.

 

So now you may be thinking, "I know its important to save, but how do I start? Where do I start?" Those are excellent questions.

Lets discuss the answers and talk about some tips to get you on the right track.

 

 

How to start saving

 

Want to save, but don’t know where to start? Here are some simple ways to meet your savings goals.

 

Save $5 a week .....

by skipping the drive-thru one or two days per week or limitingvending machine purchases.

 

Save $10 a week .....

by bringing your lunch to school one or two days per week instead of eating out

or go to a matinee movie instead of an evening showing

 

Save $25 a week.....

by borrowing movies from a friend or checking out books and magazines from the library instead of buying them

 

Save $50 a week.....

by swapping clothes with your friends instead of hitting the mall

or looking for free events (concerts, art galleries, ball games) in your neighborhood. 

 

Tips on saving

 

Save early, save often.

If you want to be wealthy, the way to get there is to invest in

yourself. The earlier you start saving, the more money you’ll have later in life. Make

savings a habit! Check out the chart on the next page to see just how quickly your money

can grow.

 

Focus on the prize.

Whether your goal is a new cellphone, a limo for prom or a spring

break trip, regularly remind yourself why you’re saving. Setting short-term and long-term

goals can inspire you to keep track of your savings and make it easier to spend your

money wisely. 

 

Put away gift money.

When you get birthday cash or any other unexpected money, put

it in your savings account. You know you can get by without it, so put it to work for you.

 

Plan ahead.

From flat tires to a broken MP3 player, we all have unexpected expenses. Reserve part of your

savings for emergencies. You’ll have peace of mind, and your emergency fund will earn interest.

 

Reduce expenses.

Monthly fees can add up to hundreds of dollars per year. If you routinely go over your

texting limit, pay for online services like photo or Web hosting, or hit the drive-thru more often than you

should, consider revamping your spending and plug the extra money into your savings.

 

Don’t count on credit.

What did people do before they had credit cards? They saved up to buy what they

wanted. Credit cards can be a great tool for handling unexpected expenses. However, charging something

you want but can’t afford can cost you much more in the long run.

 

 

When to start saving

 

Now's the time to save! Did you know that the earlier you start saving, the more your money will grow.

Do you remember talking about interest in the credit module? Well, just like lenders can earn interest when they lend you money, you can earn interest when you save your money in the bank.

Lets have a look at the chart below that shows how much interest you lose out from waiting to save.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See the significant difference in the total savings at age 65 for the 20 year old and the 50 year old?

Even just with $10 per week, over time its a massive difference.

Do you see the total amount lost at age 51 for just one year of waiting?

When saving, time is definitely your friend. Use the valuable resource that you have on hand and start saving today.

 

 

For even more great saving information, here's a TED talk on saving your money

 

Ready to test your budget knowledge? Lets try some trivia!