Many people find it difficult, if not near impossible, to put some money into savings. In a day when the economy is still a little tighter than it used to be, saving money may be even more important than ever. With layoffs still not uncommon, it is very important that families, as well as singles, have some money laid aside for emergencies, long-term goals, and retirement. You can save money, too, and here are 5 tips to get you started.
Being able to start saving money may partly depend on your willingness to cut a few corners to do so. More money can be saved if you establish a home budget first, and then analyzing it to see where cuts can be made to free up more money to go into savings.
This is an important step to help you get started. It will also let you see where all your money is currently going and will help you evaluate all your monthly expenditures.
2. Reduce Your Debt
This is where there is a probably a considerable amount of money going to waste each month. If you have debt, especially credit card debt or debt from personal loans, you are paying a lot of money each month in interest. It will help you to save more money by reducing your debt quickly, or put it on a new balance transfer credit card and take advantage of 0% interest for up to a year. Then, start your own debt elimination and save all that interest money in your own savings plan – not the lenders.
3. Make Purchases Online
When you need to make more costly purchases, you can save money by shopping online. Of course, you still need to watch your budget, but online shopping can help you save money in three ways. First, you will save by avoiding sales taxes, if you buy from out of your state. Secondly, you will save on gas mileage because you don’t need to go to the store. Thirdly, you can save money on some items because shipping is often free.
4. Consider HSA’s for Health Insurance and Savings
An HSA, or Health Savings Account, could be a great way to save money for many families. It will work best for those who are younger and in better health. This account enables you to buy high deductible health insurance and put money into a savings account that earns interest like an IRA. Money put into the account is tax deductible and all money from it that is used for health care purposes is tax-free. The money remains under your control, and any money not used for medical costs each year remains yours and keeps building interest.
5. Invest Wisely for Best Savings
Putting your money into higher interest bearing accounts is a necessity to maximize your money saved. Once you get enough to start using it to earn more interest, you want to use it as wisely as possible and avoid risky investments – especially if you are older and cannot replace the money if lost prior to retirement. While there are many investments that are good, some of these are only scams to rob you of your money. Using more conservative investment tools will help to ensure that you have money when you need it most – in retirement.