Saving money is necessary and important, no matter what your income. The money you save is the fuel for your investments, wealth building, and achieving your financial dreams. Your savings is your most important money, far more important than a mere living expense. Treat your savings with respect, and when necessary defend it at all costs!
It doesn’t matter if you haven’t been a successful saver in the past. You can learn how to start saving money in a few minutes. Saving money is relatively easy. Living on what’s left over is where things can get gritty. That’s one of the focuses of Spending Money.
Never lose sight of why you’re going to all this trouble in the first place. That savings goes towards financial goals that are going to make incredible, positive differences in your life and the lives of the ones you love. When saved and invested properly, money can do that.
Money saved can be split up between multiple financial goals. Or be single-minded with your savings and have just one. Either way, fully commit to your plan and see it through. This is how you can overcome any financial hurdle.
Look to trim your largest expenses first, where you’ll get more bang for the buck. If you own a home, your biggest expense is probably your mortgage. Have you heard of bi-weekly mortgages? Can they really save you a lot of money? Get the full story. Learn the difference between a bi-monthly and bi-weekly mortgage and find out the best way to save on mortgage interest without the high fees.
If you have a car, that’s probably your next biggest expense. Do yourself a favor and avoid the new car trap. There are so many better things to spend your money on than steep depreciation and high interest payments.
How much or how little insurance you pay for is a personal decision. Either way, insurance costs can collectively comprise a big part of your budget, and it make sense to save money on insurance wherever you can. It’s a lot easier once you know more about premiums, deductibles, what’s required and what’s optional.
Living on What’s Leftover
Maintaining your savings percentage and living on what’s left over can be hard. Sometimes, often through no fault of your own, your budget takes a hit. An unexpected expense pops up or your income is interrupted. You need a little wiggle room.
That’s what an emergency reserve fund is for. It isn’t for a doctor visit or a minor car repair. Those expenses should be budgeted. It’s for true unforeseen emergencies. Make fully funding your emergency reserve fund a top priority and be sure to replace used funds promptly.
Save More Money
These saving strategies are not new, revolutionary or the next best app or gimmick. They are mandatory, however, if you want to get your financial house in order and build wealth. If you don’t practice a version, it doesn’t get done.
There’s only two ways to increase savings: Make more money and being thriftier. Try and work on both!