Do not forget to give yourself an allowance for things you enjoy. Even if on a tight budget, buy something that you enjoy, which could be as simple as buying a new shirt or grabbing lunch at your favorite café. If you do not allow yourself this small “splurge”, you could find yourself in the same position as if dieting. Total deprivation leads to overindulgence.
11. What Matters to You
Make a list of the 10 most important things in your life. Next to each item, rank them in order of importance using numbers 1 through 10. The purpose of this exercise is to help you see the things you consider the most and least important and to provide you with a visual of why you need to save. Some examples of things that a person might put on their list include new home, car, special trip, artwork, starting a business, or pay off debts.
12. Setting Goals
Break your goals into short-term, intermediate-term, and long-term. Being able to see your accomplishments is a great motivator for you to work hard at saving. If you set a short-term goal of saving for tickets to the symphony and reach that goal, you will be encouraged to keep saving for the intermediate and long-term goals.
13. Be Realistic
When it comes to saving money, make sure the goals you set for yourself are realistic. If you earn $50,000 a year, saving $20,000 would be nice but it is very unrealistic. Make your goals attainable or you will never save.
Once you have set your goal for saving, realize that things can and will change. The secret is learning ways to be flexible. If you normally save $150 a month, when something unexpected happens, you may only be able to save $50 that month. This is fine as long as you focus on getting back on track.
Shop around for insurance and work with a good agent that can provide information on discounts such as good student, multi-car discount, etc. Some people think the price of insurance is the same from one company to the next. However, prices can vary dramatically and to ensure you get the best deal, you need to consider all your options.
Okay, maybe you used to laugh as you watched people pull out their coupons at stores but the truth is that using coupons can save you hundreds of dollars every year. Coupons can be used at grocery stores, retail chains, any store where the item is sold. Some stores offer double coupon days, which is an extra bonus. On average, you could easily save from 5% to 15% on a bill for $100 simply by presenting a coupon. Coupons are not just for food items and by scouring your local newspaper you can find coupons for all sorts of merchandise.
17. Credit Cards
Use credit cards only for emergency. Although convenient, credit cards are dangerous and damaging. In addition, if you have a credit card that has a $1,000 balance and you pay only the minimum payment each month, it will take you between 20 and 30 years to pay off that $1,000 balance since the majority of money is going strictly toward the interest and not the principal amount.
18. Mortgage Payment
Paying one additional mortgage payment each year, whether in a lump sum or monthly increments, can lower a 30-year loan down to 18 years. If you pay more than one extra payment, the number of years will decrease even more. Since this additional payment will be applied only to the principal and not the interest, you end up saving thousands and thousands of dollars once the home is paid off.
19. Credit Card Interest
If you have credit cards and your credit is in good standing, call your credit card company, and ask for your interest rate to be lowered. It is truly that simple. Unfortunately, most people do not even realize this is an option so they never make the call. Just tell the representative that you want a better rate on your credit card and they will take care of your request.