Saving Money! Everyone wants to save money, Right?
Dave Ramsey is a leading Financial Guru who advises everyone to have $1000 in Savings and then work your way up to 6 months’ worth of your monthly income in savings.
How can you get to $1000 in savings if you don't have a plan?
#1) Create a budget.
You will first have to know what you are spending your money on each month. For me, this was very painful to see how out of control I used to be with my money. Now, each month, my husband and I sit down and go over our monthly expenses and we know how much money is coming in. It is much easier to save $1000 when every penny you spend is accounted for.
List your bills in the order that they are due. When you pay them put Paid next to the bill.
If you are trying to get out of debt you may want to try debt reduction. Dave Ramsey created a Debt Snow Balling. This is how it works.
You list your debts highest to lowest. Pay off your lowest debt first. Then take the money you would have spent on that first bill and apply that balance to the next bill in line. If the first bill was $25 dollars a month and your second bill was $40 a month. You will take the extra $25 a month you would have spent on the original bill and apply the extra $25 to the $40 bill. So you will wipe that next bill out sooner. Then when the $40 bill is paid off you should have an extra $65 dollars a month to apply to the 3rd bill. Before long you will see the effect of Debt Snow balling. It is an interesting phenomenon and I love it!
#2) Carry cash with you. Instead of using your debit card. It is much more painful to pay with cash. Why? Because you feel the loss immediately in your pocket book. When you pay by debit it card you don't feel the pinch as quickly.
#3) cut up the credit cards. If you cannot pay for it, then you cannot buy it. It is that simply. Don't fall into the trap of thinking I will take care of it tomorrow. Tomorrow will come and go and you will still have that bill to take care of.
#4) Lower your thermostat while you are away from your home. Why pay to heat a space that you are not using? We went and bought an Eden pure heater, we turn that on when we get home. It heats the space we are using. It is helped with our utility expenses. Turn off the lights when you leave a room, and don't run the water unless you are using it. (Do I sound like your MOM?)
#5) Don't eat out. Eat at home. Eating at home will save you money. Tip yourself instead.
#6) Give up pop, your latte for a month and see how much money you can pay yourself. It is amazing how much money people could save just by drinking water. Besides you will feel better and you may lose some weight!
#7) Car pool with a friend to work. Why not? If you work an 8-5 job, simply take turns once a week. You might actually have time to decompress before you walk through the door at night.
#8) Use half of the recommended usage on your dish soaps, and laundry detergents. This is really easy if you have a water softener.
#9) Color your own hair! I know scary thought, but you could save a couple of hundred dollars a year by treating yourself to your own spa in your own bathroom.
#10) Wash your car at home in the summer time.
#11) Use coupons when you can
#12) Take advantage of store savings plans, and get those discounts on your gasoline
#13) Shop around for better insurance rates
#14) Buy in Bulk
#15) Look at your cell bill and call your cell phone company, see if there is a better plan to help you save money.
#16) Get rid of cable and try Netflix and HuluPlus both are 7.99 a month and you can put an antenna on your TV
#17) Buy from a 2nd hand stores. There is so much good stuff out there it is crazy! Be a new trend setter. When you get to the office and everyone rants and raves over your new look don't tell them your secret.
#18) Do meal planning. This will help keep you focused at the store and stop you fretting over not eating out. Cook with your friends and make 4 days of meals ahead of time. Casseroles rock! Get creative.
#19) Buy vintage pieces of furniture’s and repaint them for a new look. You will love the new look and it will be well over half the expense of something brand new.
#20) Buy items only if they are on Sale.
If you try these items even for a month, I promise you will start to see more money in your accounts. I would love to hear how you save money!
One last Question for you?
Did you know there are Loan programs available for anyone who wants to buy a home for as little as a $1000? So save up your $1000 then Call me! I would love to help you buy your home. Shelli Novotny Prudential Ambassador Real Estate 402-250-7042