Saving Money has always been something we American's should do. No Matter What.
And now it is more important than ever.
1. Make a list of all your expenses:
Which includes, utilities, house payment, car payment, rent, property taxes, insurance on your house, autos, medical insurance, donations, entertainment, golfing, clothes, etc. I mean everything.
Put the list in 2 categories: Name the first category Needs: Name the other category wants/pleasures and be honest.
An example of a need is housing and transportation, an example of a want/pleasure is golfing 3 days a week and a cappuccino every day.
2. Make a budget and stick to it. Take the 2 list from above and apply a dollar amount to each item. Look at what you are actually spending for each and take a look at your income.
3. Stop buying on credit: credit cards, auto loans, pay day loans are the worst.
4. Eliminate debt first: stop paying late fees. And do not incurre more debt. Once debt is paid it will free up more of your money.
5. Trim your expenses: this is much easier than you think:
Take the 2 list from above: Start with the wants/pleasure list first. I am not saying completely cut everything out but take a look at it and cut 30% of the cost out. Still enjoy life find different ways that are less expensive to do the same things you enjoy. If you must golf go the a least expensive course. And for your favorite drink make it at home most of the time and buy it out only 1 per week.
Then take list 1 from above: Your needs are different but those expenses can be cut as well. If your house payment, rent, car payment is more than it should be, sale the house, rent out a room to help with expenses, find a less expensive place to rent, trade in that auto for something less expensive and do not buy another car until this one is paid off. A car payment is like flushing your money down the toilet. Most cars today will last 10 years with just the normal maintenance.
Then look at your food budget. Or make a food budget. Stop spending for fast food and eating out all the time. Cook at home. My book Save Your Money Save Your Family will be in book stores soon. You really can feed a family of 4 for $250.00 per month with a little planning and cooking more at home. Make it a family affair. And by doing this you will be eating much healthier.
6. Always record your expenses: As soon as you use that debit card. (Which is another great way for consumers to loose track of their finances and for banks to capitalize on making more money) write down the purchase immediately, you know as well as I do we loose that little pieces of paper that are called receipts for the transaction. And do not use a credit card.
7. Always know where your money is to the penny: With online excess today for your bank account, there is no reason for you not knowing where every penny is. And you should never overdraft your account. You are only making the bank money. And killing your cash flow and credit.
8. Set a time frame for you and your family: This will help you to meet your goals in a realistic manner.
9. Pay yourself first: Take 10% of your check each time you are paid and put it in the bank. Include it as one of your needs items. And once it is in the savings DO NOT TAKE IT OUT. CUT SOMEWHERE ELSE. Remember it is your money, you worked for it, you should have some of it for your tomorrows, and no one else is going to help you save your money, only you and your family.
10. SAVING MONEY IS YOUR GOAL: Follow the steps above and you will be successful. YOU CAN DO THIS!!!! STAY FOCUSED, KEEP THE OBJECTIVE ALWAYS IN MIND, HOW GREAT IT WOULD BE TO HAVE YOUR HOME PAID FOR COMPLETELY IN A SHORT FEW YEARS OR TO PAY CASH FOR YOUR NEXT CAR.