Basic Saving Tips

Basic Saving Tips
By Barbara Jolie

Whether it’s holding onto more of your money or spending it in different ways, there are plenty of ways to save.

1. Take 10 percent off the top: Take 10 percent out of every paycheck and put it into savings. You can split it further into long-term and short-term savings accounts, but the key thing is to take that 10 percent off the top, before you spend anything else. You’ll be amazed at how quickly your savings starts to grow.
2. Start an emergency fund: Put some money every month toward an emergency fund that you can use for things like hospital trips or car repairs.
3. Cut the excess: Sure, it’s nice to have a Netflix subscription or premium cable channels. But if you really want to see savings, you’ll eliminate those luxury perks.
4. Consider the options: Paying yourself first by taking 10 percent off the top is smart, but putting that money to work in a higher-yield savings account over the long-term is even smarter. Talk with your banker about how to get the most from your money.
5. Sack it: Do you eat out for lunch most days? Time to trade that habit for a brown bag lunch. You can save hundreds of dollars a year by preparing your midday meal at home and taking it to work with you.
6. Hop a bus: This might be easier for people in big cities, but public transportation is still a great way to save money by cutting down fuel expenses. Plus you get to help the environment.
7. Don’t use credit cards: One of the best ways to save money is to eliminate all — each and every one — of your credit cards. Just don’t use them, period. Pay off the balances and you’ll be floored at how much you can save when you don’t have to pay monthly minimums.
8. Shop for generic brands: When you’re at the grocery store, buy generic brands of products like soda and medicine. You get the same ingredients for a fraction of the cost.
9. Shop in bulk: Consider joining a warehouse club like Costco or Sam’s Club. The cost of the annual membership can be easily offset by some of the savings you get from buying in larger quantities.
10. Set your thermostat higher: I know summer can be brutal, but setting your home’s thermostat at a higher degree will keep the air conditioner from running all day in a futile attempt to turn your house into a refrigerator. Buy a couple of oscillating floor fans to help with circulation.
11. Change those bulbs: It sounds like a little thing, but it’s not: Switching to energy-efficient light bulbs can save you hundreds, especially since they last years longer than traditional bulbs.

Article Source: http://www.onlineclasses.org/2010/06/23/50-important-financial-tips-for-young-adults/

It really is important for us to save. We should be saving even how rich we are. Because we cannot tell what the future lies ahead of us. So as not to be caught off guard, we must save today for our bright tomorrow.

via reuters