Money Topics : A Dozen Ways To Save More of Your Paycheck
A Dozen Ways To Save More of Your Paycheck
Saving More Of What You Earn
So you've set a financial goal to increase the amount of money you have
in savings! That's great, an
important first step. Now, where is that money going to come from? Setting
aside more of what you
earn for savings can be a challenge. Here are a dozen tried and tested
ways to increase your savings to
get you started.
A Dozen Ways to Save More of Your Paycheck
1. Pay yourself first! The best idea is to decide to save a certain
percent of your take home pay,
and set those funds aside before paying any other expenses. Most financial
individuals to save at least 10 of their income. If you have not been
in the habit of saving that
much, start with 2 or 5 and then adjust upward as you are able. Many people
find that they
really notice no difference in their lifestyle when they start such a
2. Collect coins in a jar. Just saving the 25 cents change from
a 75 cent cup of coffee will result
in a yearly savings of $65.
3. Bank your refunds. Instead of spending your income tax refund,
use it to pay down a high
interest credit card bill or directly deposit it in the highest interest
saving option you can find.
4. Continue paying a loan. When you finish paying off a car loan, for
example, continue making
that same monthly installment payment, but to yourself! Put that dollar
amount into an
investment that will earn the highest possible rate of interest.
5. Break costly habits. Coffee, a doughnut and the newspaper purchased
every working day
might cost you $15 or more per week - or - $750 per year.
6. Increase investment yields. Look for higher interest opportunities
for your savings. Don't
leave them languishing in a basic bank or credit union savings account
with minimum interest
7. Buy U.S. Savings Bonds. This is an ideal way to set aside small
amounts of money for long
term goals. EE savings bonds can be purchased at banks and through employer
deduction plans. They are purchased at one-half their face value (eg.
$25 for a $50 bond) and
come in denominations of $50, $75, $100, $200. $500, $1,000.
8. Take advantage of payroll deduction plans. This is the easiest
way to pay yourself first. If
you never have the money in your hands or your checking account, it is
much less tempting to
9. Join Christmas and vacation clubs. Banks pay little or no interest
on 'club' accounts and most
stopped giving gifts years ago. The major advantage is reinforcement of
with weekly coupon books and the ability to save small amounts.
10. Bank a windfall. When you receive an unexpected amount of money,
the temptation might be
to spend it on something extra as a treat. Another way to think about
it is as an investment in
your future. It's money you won't miss, because you were not expecting
it, or did not have it as
a part of your regular monthly spending plan, so it could easily be used
to increase your net
11. "Crash Savings" - This means deciding to do without
any extras for a determined amount of
time. All money that would normally have been spent on those items is
put into savings. The
idea is that it is easy to do without some things for a "Nothing
Week" or a "Nothing Month".
12. Set Goals - A recent study, sponsored by the consumer Federation
of America found that
people who develop plans to reach savings goals have approximately twice
the amount saved
as those without plans.
This Article is courtesy of Money 2020 from the Utah
State University Extension Service