Every year, the last week in February is dedicated to brainstorming, outlining, and ultimately implementing techniques necessary for effective saving, which is known as America Saves Week. According to the organization, the time-honored event, “started in 2007 and along with Military Saves Week, it is a national opportunity for organizations to work together within their communities to transform the lives of millions of Americans”. As such, from February 25 – March 2, 2019, it will be the fervent wish of financial analysts, educators, and enthusiasts alike that Americans buckle down and not only become transparent about their difficulty with saving but will be open to adopting strategies that will help amend poor habits.
With the plethora of financial resources available, and steady climb to access, low- to moderate-income households are working diligently to build wealth by eradicating debt and saving more. Thus, through the myriad of fiscal challenges found across major social media platforms, families and individuals are first holding themselves, then one another, accountable for improving their financial circumstances. Thus, as pledges are taken this week, below you find six savings tips that will help you successfully save money: Tip #1: Pay Yourself First Put away the amount you intend to save before you do anything else. For example: If you resolve to save 10% of your income, be sure to accomplish that task before funds are dispersed. Tip #2: Saving Is Linked To Your Expenses How much you should save depends on how much you can save. Example: There are two workers, Jack and Jill. On payday, Jack utilizes his money to pay rent and his car note. Jill utilizes her money to buy items she desires but does not need because her parents pay her car note and rent. It would appear that Jill is saving more because she does not have any expenses, however, this is incorrect. Such thinking is incorrect because expenses are “things you spend money on”. Therefore, the correct statement is, “Jill has fewer expenses than Jack”. No matter how much money your earn, or how many expenses you have, you will more than likely save more if you remember to pay yourself first. Tip #3: Find Out Where Your Money Goes Although tedious, tracking is necessary. Thus, if you decide to track funds manually, utilizing a notebook and a pencil or pen, write down how you spend daily, weekly, and monthly. Possessing a Money Diary to write down these expenses can assist in completing this task. As such, in your diary, list what you have purchased, the cost, and why the purchase was made through storytelling. The end goal is for your diary to be a tool to further your education about your role as a consumer and your fiscal habits. Tip #4: Cut Your Expenses There are expenses that we can all more than likely cut, which include but are not limited to: $5 cups of coffee (Dunkin’ Donuts, Starbucks, etc.); buying $12 lunches; and eating out at restaurants. Solutions to these problems also include but are not limited to: bringing coffee from home in a thermos; brown-bagged lunches; and eating out at restaurants twice a month. Specifically, if you can cut your food-related expenses to roughly $8 a week, that is $32 a month! Tip #5: When You Do Spend, Be A Smart Shopper You are beginning to master paying yourself first and cutting down your expenses. Suddenly, Tim Cook and the team at Apple announce that the iPhone XR will be re-released with additional upgrades. Simultaneously, Samsung announced that the Galaxy 10 will hit shelves in another month and now you are faced with a dilemma: which device do you buy? Now is the time to employ your comparative shopping skills. As such, comparative shopping allows you to compare prices across retailers, ultimately choosing the product with the cheaper price tag. Before I continue, it is critical to note that the aforementioned products are frequently out of the price range for many low – to moderate-income leveled individuals. However, for those fortunate enough to purchase these items, do your due diligence before making any final decisions. Tip #6: Beware of Unsolicited and Untrustworthy Online Advice Unfortunately, not all “expert tips” have been thoroughly researched and tailored to an audience by analysts and educators in the field. Therefore, reading every article of information available is highly suggested. Once you have a multitude of tips at your disposal, it is time to create an action plan.
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