Money can be saved and used wisely by following your goal, and stickling with the goal, until your reach your finish line. Too often a goal is set to save money, and then progress is made, and then something happens and the goal is delayed, and then the goal is forgotten, and then terminated. Become a good goal setter and finish it.
The recession of 2008 into 2009 has changed the way people view their spending, and the way money is spent. Smart financial managers are now looking at their financial health in a different, more meaningful way, to cut back on their credit card use, and credit purchases in general, and save more money to prepare themselves, when another financial recession appears again. You can do the same. I will offer you some tips to save extra cash, while shopping wisely.
Use cash or debit card.
*By using cash, your money, will last longer, you look at it, feel it, before you send it. Take less cash, when you shop, and when your find yourself out of cash, stop shopping for the day. Use a debit card, this is like paying in cash, your debit card balance reflects the amount you have in your checking account. You can get a debit card at your local bank, use this at the grocery store for food shopping, and other regular weekly expenses. Avoid using credit cards for excessive normal expenses, because if you are paying only the minimum payments monthly, you will never get the credit card paid off. Don't have too much taken from your weekly pay check?
Be willing to change your W-2.
*Do you get a large refund on your income tax? You might not be taking too few dependent allowances, and you are giving Uncle Sam your money to use for one full year before you get your tax refund. Go to your human resources office, and ask for a W-2 form to increase you dependents, and then your weekly pay check will be larger, so you can pay your monthly bills easier, and save some of it for a home, or invest in your retirement such as a 40l(k), or your retirement savings.
Pay off your credit cards.
*Too much plastic in your wallet can hurt your financial life. You Can you pay off those high interest rate cards, so you can use those weekly payment savings into additional savings. The average American consumer, has 7-8 credit cards, and over 9 thousand dollars in credit card debt, and by only paying the minimum payment each month, it will take years to pay those credit cards off. Let's face it, you must cut your credit cards limit, to only one card, and also set up a emergency fund, for car repairs, a new roof, or any other emergency situation. Try to pay all those credit cards off within 24 months or two years.
Consider refinancing Your House and Auto.
*Refinance your home and your car loan, at the lowest rates in many years. Banks are offering refinancing at 4%-6% right now, depending upon your FICO credit score, and if you are paying your mortgage on time. If you qualify for this refinancing, you can save on your monthly payment, and even shorten up the amount of time left on your mortgage. Let's say, your current finance rate is 8-l2%, you can save thousands of dollars each year after the refinance. Also, if you car loan has a high finance charge, check with you bank to see if you can refinance the loan at a lower finance rate. Check your insurance costs.
*Get insurance quotes for your auto and house insurance.
You might save some money by getting a yearly quote on your house and auto insurance. Compare the yearly quote, to what you current insurance company agent is charging you. Have you make any insurance claims in the past few years? If the answer is No, you have a good chance of getting a 20-30% reduction in both your house and auto insurance. This could be hundreds, even thousands of dollars savings each year.
*Pay yourself first.
Once a week, or monthly, pay the most important person: YOU. Put money into your savings account at your bank or credit union, or put it into your 40l(k) plan at work, you will not miss it, because you don't see it, and it will build in your 40l(k) tax deferred until you use it. People in their 20-30's will have 8-l0 40l(k) plans in their lifetimes, and will need everyone of them to have a successful retirement. You have no choice but to start saving in your 40l(k) now, even if your company fails to match it, or it will more difficult to retire successfully later on. People in their 40-60's need to keep funding their 40l(k) or retirement funds, or savings to make their retirement nest eggs larger, to have a good retirement. Let's sum up.
Summary. You are your financial manager, never expect someone else to be it for you. Transfer money automatically weekly into your saving account, 40l(k), retirement funds such as IRA(Individual Retirement Account), or Roth IRA account, don't put it off. Set up a plan to both save money, and cut expenses listed above, and you will have a Double Win-WIN going for you, by saving every week, you are building for your future, and retirement, and with cutting expenses you free up dollars to continue to save. Review this year's checking accounts and credit card statements to see where your money went, and make the changes necessary to become your own best Financial Manager. Good Luck. Go for it.