Living paycheck to paycheck and trying to save money is an almost impossible task. But what if a person can not only build a savings account but keep enough money in that account to have 6 months worth of living expenses? You are probably sitting there thinking, “this lady has done lost her mind”. It may seem like that but I assure you it isn’t as far fetched as it sounds. It is going to take a lot of hard work on your part but with a set budget, some proper planning, and some will power you will be able to build up the savings account and have 6 months of living expenses in that account.
Step One: Set up a Budget
As with any good plan, one must set up a budget. After all, you can truly get serious about that savings account without a budget. This is just knowing what is coming in and what is going out. Simple, right?
Step Two: Lower Your Monthly Expenses
Any money that you can save by eliminating or reducing expenses is more money for the account. Here are some ideas to help get you started:
*Cancel your cable or satellite service. Gasp! Yes, cancel the service. This is one of the more harder choices because we all have our certain shows that we watch. This is one of the situations where the will power comes to play. You can still watch all your shows, you just have to be creative in doing so.
* Get organized with your bill paying. If you are finding out that you pay penalties for being late every month, then it is time to organize those bills. This can be done by purchasing a ledger book (under $5.00), writing down each expense (when they are due, the amount, etc.) and the date in which you can pay them. This will help cut back on those penalty fees.
*Eat at home instead of dining out. Dining out is a very costly expense (a family of 4 spends roughly around $25.00 every time they eat out. This is at fast food resturants.) Instead of using the $25 for dining out then use that money to buy a couple of meals for the family and cook it at home. More than likely the meal will be more satisfying and it will give you a chance to reconnect with your family.
*Make cash purchases only. This is a simple concept: if you don’t have the cash on hand, then don’t buy the item(s). This will cut back on those interest rates to the credit cards,especially if you are only making the mininum payment.
* Cut out ALL unnecessary spending. This one takes a lot of will power. Who doesn’t splurge spend? We all have been quility of it at least once in our life. However, if you want to save the money then you can’t do this (at least not until you get the 6 months of living expenses taken care of).
Step Three: Bring in the Extra Money
Following are some tips to help you bring in extra cash. Keep in mind that whatever money you do bring in should go directly into your savings account.
*Have a yard sale and get rid of the old “junk” that is taking up space. This is a fast way to bring in some extra cash, even if it is only a couple of dollars. That couple of dollars will help you with your goal.
* Selling on Ebay will possibly generate more money than having a yard sale. However, selling on Ebay is a lot of work. With that being said, the one good thing about selling is you get paid though Paypal and you can transfer that money directly into your savings account.
Cheer up! Starting and maintaining a savings account is not as hard as it may seem. You have simply got to know when and where you can cut back expenses. Once you have the savings account built up, then you can go back to your old habits. But you may like saving each month and continue to be on the “savings” road. No one is going to judge you, either way. Happy Saving, everyone!