How to save money in a recession without turning blue!
How to save money in a recession without turning blue!We're all having to tighten the financial belt these days. Incomes aren't exactly increasing, while costs continue to rise. Learning how to save money is not a magic trick, it's simply a matter of self discipline and a realistic and complete budget. Let's see how any one can learn how to save money, even in difficult times.
Begin by making a budget which covers all of your fixed expenses, such as food, clothing, utilities and shelter. Once you've covered the essentials, make entries for non-essential expenses, such as manicures, salon visits, a gym membership or the like. Look your budget over to see if your figures are realistic when compared with both your income, actual practice and personal priorities. Learning how to save money regularly all comes to discipline and priorities.
Let's say you've budgeted $30 a month for entertainment. You go to the movies once a month, rent three movies a week and go out to lunch once a week? These few entertainment occasions can easily eat through that $30 budget in a week and a half. Remember when you were a kid, receiving allowance? That $5 bill looked great, but quickly disappeared in a few sodas and a fast food meal. The point is, that money is much more quickly spent than earned! With your example entertainment budget, don't fool yourself. If these items are a priority for you, allocate the money and don't go over your budget. On the other hand, learning how to save money involves making decisions on which non-essentials are important versus those you could really do without.
For example, if you subscribe to satellite or cable services, but it's really a big hit on your monthly bills, consider alternative ways to have your home entertainment at a lesser price. With a fast DSL line, you kill two birds with one stone. Net surfing is fast and you can watch movies 'on-demand' from one of the online movie rental sites, for a lot less money. Figuring out how to save money requires some 'outside the box' thinking, too.
Once you've covered essentials and luxuries, include a realistic savings amount just as you would any fixed expense. Have a goal for the specific purpose of that savings account. Next year's vacation? Retirement? College fund? Holiday gifts? Emergency stash? Make separate savings accounts for different objectives, if you wish. When you're starting to learn how to save money, this strategy prevents any 'cheating'.
How to save money on groceries? Shop the sales and plan all of your menus around the sale foods. Shop canned good outlet stores and dollar type stores.
Around the house? Check your weatherstripping for leaks, change filters on heaters and air conditioners and turn the thermostat down a few degrees in winter. Reduce the temperature on your water heater by 5-10 degrees.
Simple measures, like remembering to turn off lights and taking public transportation 2-3 times a week instead of driving, all add up to significant savings in a year's time. If you've got young kids, you know how fast they grow out of clothes. For items like jeans, tee-shirts and every day wear, shopping thrift shops and garage sales can save you hundreds of dollars a year. It doesn't matter to the kids until they're of a certain age how much you paid for the jeans and tees. In both cases, they will still get spaghetti sauce and grass stains.
Treat your savings account like your phone bill. (It must be paid!) Once you learn how to save money, you'll see how quickly and painlessly it mounts up. Just $10 a week can pay for a great ski vacation next year!
