With today’s economy and the increasing need to save money and be more financially stable, more and more people are looking for ways to cut expenses and build the bank account. It may seem like a difficult task, but saving money is really quite simple. Becoming aware of how you spend your money is the first step in reducing expenses. It is never too soon to start learning good spending habits. Here are five good ways to begin.
1. Store your Money in Tight Places
Though it may seem odd, try putting your savings in places you can’t easily withdraw it. The easier it is to access your cash, the more you’ll be tempted to grab some money and hit the mall. Avoid accounts with ATM access. These machines allow instant access to large amounts of money directly from your bank. Having all this money available at the touch of a button is too tempting for many people. Try investing in a CD which has a time penalty and decent interest.
2. Use Cash Whenever Possible
Convenience usually has it’s price. Debit cards and checks often have many fees associated with them. As nice as it may be to go all electronic, there’s no substitute for the use of regular currency. Gas stations often charge a higher debit fee for gas purchases. Using cash also makes you more aware of the money you have and how fast it is being used. Give yourself a certain amount of cash and don’t overspend that limit.
3. Use Free Financial Service
Many banks and credit card companies charge fees for financial services. You can save good money by simply switching to a no fee checking account or a no fee credit card. Whenever you withdraw money, try to go directly to your bank and avoid those hefty ATM fees that add up over time.
4. Save your Next Raise
When that nice promotion rewards your hard work, take that additional money and tuck it all away in savings. Since you are already on a steady budget, you can easily pocket this extra money. In this way, you are essentially paying the most important person, you. A nice %5 increase in pay will generate 2 to 3 thousand dollars a year.
4. Make Cash in your Spare Time
After you’ve increased savings as much as you can, find ways to make additional money in your free time. Jobs such as house sitting, baby sitting, and painting can pay a few extra dollars an hour. Take this money and put it directly in savings or towards an important financial goal.
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