New Year's Resolution to Save More Money
Saving Money Does not Have to be Difficult for the New Year
Dec 28, 2008
Finding ways to save money can be difficult, but in this day and time, it is important to have a safety buffer of money to live on built up in the bank. Here are some simple ways to help you find small amounts of money to save. Every little bit you can put away will build up overtime, and make a significant impact on your savings account over several years.
Keep a Spending Journal
For one month, keep a spending journal. Write down everything you spend, down to the penny. You can do this easily by keeping receipts. This will help families as well, because one spouse can save receipts and the other can keep the journal. Write down every drink you buy, every gas fill up, every vending machine snack you purchase.
After one month, sit down and go over your journal. Categorize each amount into the following categories: food, gas, utility bills, and eating out. Include other categories that seem to work for your particular life style. Now decide where you can shave pennies off your spending. You may decide to pack a lunch four days and only buy lunch out once a week. Look for little things that you can eliminate from your spending that will help save money each month.
Pay Down Debt
Put extra money each month into the highest interest debt that you hold. Paying this debt off faster will allow you to put more money into savings in the long run. The other option, instead of paying towards the highest interest rate, is to pay towards the debt that requires the highest monthly payment. Paying this debt off will provide you the fastest turn around for a sum of money to put towards other debt and savings.
Improve Your Credit Score
Go to annual credit report and get your free credit report. This site requires no membership or fees, as long as you pull your credit only once a year. Do this to look for any mistakes on your credit that may pull your score down. Work towards improving your score by reducing the amount of debt you owe, paying your bills on time, and not taking out any new credit.
Look for little changes that you can make to put money aside this year. Slowly build up your savings account to provide a 3-6 month buffer. This will allow a cushion so that if something were to happen to the family’s income or if an emergency were to come up, you will be able to continue paying your bills each month.
Learn how to organize and lose weight in the new year, as well as how to keep your New Year's resolutions.
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