Tips On Saving Money

Save Money Ideas :

Our tips on saving money will help you to increase your wealth and protect you from unpleasant events.

If you have a job loss, major car repair, medical emergency, or need to pay for a major repair on your home, knowing you have money saved to fall back on is a good position for you to be in.

When it comes to saving, money tips that work are what count at the end of the day.

Below, you’ll find our strategies for saving money fast that we’ve used for years and will help you to increase your cash savings and alleviate your financial worries.

Tips On Saving Money :

Tips On Saving Money – The Emergency Fund

An emergency fund is needed if you want to protect yourself from unexpected financial events. We had a neighbor who recently lost her job in the auto industry. Her husband had just lost his job a few months prior working in the building industry. They lived pretty high on the hog having the nice cars and toys, but never took the time to save their money.

Now, they’re in trouble financially. They’re unable to pay their bills, including their car and home payment. They’re actually borrowing off of their credit cards to help make bill payments, which is a recipe for disaster because they’re falling further into debt.

So, it’s a very good idea to set up an emergency fund. The rule of thumb is for you to have between 3 to 6 months of your living expenses set aside for emergencies. However, we recommend you strive towards putting closer to six months worth of savings aside, especially in the event of a bad economy.

The most common reason for having your emergency fund set up is because of an unexpected job loss. If you or your significant other loses a job, the bills are still there and it can take a few months to find another job. It’s just a good idea for you to plan ahead for an unexpected event that can put a financial drain on you.

If you don’t have an emergency fund, don’t worry. Getting started is what’s important. To begin, we recommend you set up a new savings account just for emergencies with your bank. Then you should regularly (bi-weekly, monthly, etc.) make a deposit into this account.

You don’t have to climb the mountain all at once; just take one step at a time. So, start your emergency fund with a small amount, say $50 a month. If your budget allows for more, than by all means put in more than $50. What’s important is you start to consistently add to your emergency fund and make it a habit.

If you’re thinking, I never seem to have any money left over for savings; trust us you do. Pay yourself first by putting the cash into your emergency savings account. You’ll find that by paying yourself first, you’ll get the bills paid.

You’ll also find that making a budget will help you eliminate unnecessary spending, freeing up more of your money for savings.

Leave a Reply