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Posts Tagged ‘saving money’

Are you the type of person who is a savvy money manager?Or, are you normally struggling to scrape by till your next paycheck? If you fall under the latter category, now is as good a time as any to open a savings account for yourself and seriously start saving money.

You don’t know if unexpected expenses lay ahead so it is smart thinking to set up a high yield account. This is a secure way of saving money in a bank, with the added bonus of earning a particular percentage of interest for the amount that you will deposit.

Saving Money 101: Taking Control of Your Spending with a Spending Diary

If you’re like the average person, there would be a lot of instances when, after withdrawing $100 from the ATM machine, you will wonder where all the money went about a day later.

This normally happens when your not keeping a good track on your spending patterns. This is not a good practice at all, especially if you seriously wish to start saving money by actually adding funds to that savings account which you opened a year or so ago.

So what’s the best way that you can use to get a head start with saving money? You can do it the old-fashioned way: by creating a spending diary, keeping track of your spending habits and adding money to your savings account so that you can start saving money.

In a nutshell, a spending diary allows you to track where you money has been spent and allow you to see where improvements and cut backs can be made to save money. Going back to the example mentioned earlier – if you did take out $100 from your savings account through an ATM machine, you will see where that amount actually went.

After withdrawing the money, write down on your spending diary which items you bought with that $100. Did you spend the money on a newspaper or morning coffee while heading to work? Did you use it to buy food? Or did you have an ‘attack’ on your conscience and you actually put that amount towards your savings account?

If you’re spending money via a debit card instead of cash then you can double check your spending by viewing your bank statements with online banking.

Once you have developed the habit of writing down on your spending diary the ins and outs of your finances, you will be able to see which aspects of your spending you can actually cut back on. If you see that you’re spending too much on eating breakfast outside of the house on your way to work, you may want to pack a hearty sandwich for yourself. Better yet, wake up earlier and enjoy the financial and health benefits of eating a nutritious breakfast at home.
Once you stop wasting money on items you don’t require you will find your savings can start to grow at a rate faster than you expected. This way, you will be able to determine which purchases are wasteful and which ones should be once-in-a-while indulgences.

In addition, your savings account will be given a boost because the money that you will be able to save from the unnecessary purchases can go towards saving money instead. It might be a bit tedious and difficult at first to keep a spending diary. However, once you have gotten used to the notion of keeping tabs of your spending, saving money will be much more instinctive and less of a burden or a chore for you.

Article by Richard Greenwood who runs a number of sites to help people compare credit cards and other financial products and then make an application online.

Unemployment is hard to deal with at the best of times. With the challenges now facing the world’s economies, many are going to face this emotional rollercoaster for the first time in their working life, quickly needing to find ways of saving money and identifying saving tips. It is therefore vital to realise that you are not alone and by acting positively you will improve your chances appreciably of finding new employment. You therefore need to recognise it for what it is, acknowledge it and move on.

Taking each of these in turn:

Recognise it for what it is; a period of acute anxiety. There are many contributors to this stress, including….

• A journey into unknown territory – “what is going to happen to me?”

• A feeling that you are letting people down, particularly your immediate family. If you have younger children and financial dependents, this feeling is likely to be much stronger. You may have to put family dreams on hold.

• Lots of new challenges, like understanding the benefits system.

• Be anxious about rising debts, often including, in a few cases, worry about having your home repossessed if you have a mortgage.

• Difficulty in adjusting to a new life style with a different income – “how will we keep up with our friend’s social scene”.

• Worry about how other people, friends and former colleagues will view you.

• A lower level of self worth – “how did I fail?”

• Anger at former employees or circumstances leading to the unemployment

• Lack of motivation “what is the point?”

Accept the situation. This may be hard to do, but once it has been achieved in a meaningful (not superficial) way you can get on with repairing the damage.

Move on positively and swallow your pride. You’ll need to make changes and manage the financial consequences of lost income. Do not hide from decisions. Some of the things to put on your agenda to consider include:

• Make sure that you access any benefits that you are entitled to straight away. The means testing may feel intrusive, but it is imperitive not to misuse your time. It is very difficult to get any form of benefits paid for the period when you should have claimed and did not know how to.

• Review in detail your budget. When you have completed this, do it again taking out the bits that you can live without. Make every penny count by finding ways of saving money.

• Speak immediately to your bank and other financial relationships before any damaging situations arise. They are professional and should give you some breathing space, particularly in relation to your house or mortgage.

• Dont bury your head in the sand. The best way to get back into employment is to get out and speak to people, so find out what friends and previous colleagues are doing. Go to social events, sports clubs, business networks etc and tell people that you are looking for work. Word gets around and generally people are willing to help. You will quickly discover that you are not alone.

• Turn the unemployment into a long term opportunity. What do you really want to do? Update you resume and make plans for the future.

Finally, take advantage of any assistance that is available from friends and contacts. Look online for any help available during this tricky period. For example, look for personal finance systems that can help you to manage your budget better and to coach you about saving money. There are also a variety of sources online for saving tips that could be interesting, so seek them out.

Saving money need not be too complicated.Making a few simple changes to your daily routine can quickly lead to easy savings.  The key to growing your personal wealth is to spend less and to seek small things that drain money from your pocket and leave more to keep growing in your savings account. 

Below are five easy suggestions to cut your household budget and improve your cash position each month. 

Regularly Check for Water Leaks on Your Plumbing

Leaking faucets and plumbing pipes are sure money drainers.Fixing up your leaks will save precious water and save you money. 

By simply checking your plumbing each week, you can avoid wasting thousands of gallons of water each month which could make a big hole in your pocket.You can see saving money is simple and doesn’t take any complicated skills.  Just check for leaking pipes and you can surely get big savings. 

Become an Eco-Driver

Saving money and driving safely can be synonymous.Driving was a little thought can have big impacts on fuel economy and reducing wear and tear on your auto.  Your car can become a gas guzzler if you drive aggressively. 

You can get big savings if you will always cruise comfortably on highways.  You can reduce your gas mileage by 33 percent if you will practice defensive driving on major highways.  You can also get big savings if you drive with a cooler head on city streets. 

You must also park your car in the shade so you can reduce your battery and fuel costs by fifty percent.  Saving money is possible by just becoming a wise driver. 

Regularly Defrost Your Freezer

If you notice ice starting to build up in the freezer then put your items in a cool box while you defrost the freezer.  Your energy consumption will be greater if your freezer has an inch of frost.  You can get big savings and fresher food if your freezer is highly efficient. 

Saving money on your daily energy consumption is possible if you keep your freezer in top shape.  Your foods will also taste great because your freezer keeps them fresher. 

Using Energy Saving Lightbulbs to Save Money

If you want to enjoy more savings from your monthly electric bill, then better use compact fluorescent lamps or CFL.Enery saving bulbs can produce the same amount of light as a regular bulb but using far less power. 

You can enjoy a 20 percent drop in your energy consumption if you use CFL in your house.  Saving money therefore is possible just by changing your light bulbs.  You don’t need to be a financial whiz to change light bulbs. 

Saving Money by Collecting Discount Coupons

Do not be ashamed to collect discount coupons because you can get big savings from them.In the current economic conditions more and more people are trying to save so take advantage of the savings on offer. 

You will be able to get discount coupons on Sunday newspapers or from online shopping networks.Go a get your scissors and start hunting out coupons for bargains in your area. 

Saving money is not complicated.You don’t require a degree in economics to save money, just a little common sense.

Article by R. Greenwood of http://www.compareyourbank.com.au