How to save more money in a recession! Yes, it can be done!
Back in the 1950s and 1960s, it was common practice to set aside money in a savings account, on a regular basis. This practice seemed to go out of favor when credit cards became popular, appearing in your 1970s mailbox, ready to use and without so much as an application. Today, Americans are notorious in their neglect of the old fashioned savings account. It's time we all took a page from our grandmother's conservative fiscal habits. This strategy is an excellent method to save more money, even in a recession. Let's take a look.
That old adage, 'A penny saved is a penny earned', still holds true today. When our budgets were flush, a penny or a dollar hardly seemed worth considering. Of course, with inflation, we're talking more like $10 or $20 we spend without even thinking about it until now. So become a nitpicker with your expenses. If you haven't got a budget, you need one! List all of your expenses, save receipts and determine where your money is going. You might be astonished at the waste. For example, maybe you're in the habit of taking your non-washable clothing to the dry cleaners, to the tune of $50 a month. The home dry cleaning kits work great. You may well save $35-40 a month with this easy solution, not to mention that you save more money and time by not driving on this extra errand. Devise alternative solutions as possible.
Our grandmothers often employed the 'envelope system' in order to save more money. Here's how it works. When your paycheck comes in, put a slip of paper with the amount of each bill in the 'payments' envelope and deduct those amounts on the spot from your bank balance. This way, you will not be caught short when the bill comes due. Write the dollar amount remaining in the bank on another slip and put that in the envelope marked 'savings'. Should you need to spend some of this excess, you deduct that expense from your savings slip. This is a psychological strategy that really helps you save more money. You're much more apt to think about whether that expense is necessary and not a result of 'impulse' buying. You may end up with a surplus at the end of the month, with which you can open a savings account at the bank.
Another effective strategy to save more money is to empty your pockets of spare change at the end of each day. This seldom amounts to much, but if you do this every day, putting the change in a jar in the closet, it quickly starts to add up. You just pretend it's not there. At the end of the month, turn in your change at one of those automatic change counters at the grocery or bank. Take the cash and put it in your savings account.
Another habit we've all acquired is that of buying prepared foods. This impacts your grocery bill in a huge way. The more meals you cook at home from scratch, the more money you'll save. Make a huge batch of chili when beef is on sale and freeze in family sized portions. When you compare the cost of a similar amount of canned chili, it's easy to see you save more money and lots of it. Such Saturday morning do-aheads are quite friendly to the food budget.
Another painless way to save more money is on clothing. When kids grow out of clothes every few months, shop the thrift and consignment shops for big savings on quality clothing.
Using all of these strategies results in what? You save more money than you might ever have thought possible. Come holiday gift giving time and you'll have a sizable fund with which to pay cash, saving even more by avoiding credit card interest.
Be vigorous. Make this a family project. Saving money can be easier than you thought!
Back in the 1950s and 1960s, it was common practice to set aside money in a savings account, on a regular basis. This practice seemed to go out of favor when credit cards became popular, appearing in your 1970s mailbox, ready to use and without so much as an application. Today, Americans are notorious in their neglect of the old fashioned savings account. It's time we all took a page from our grandmother's conservative fiscal habits. This strategy is an excellent method to save more money, even in a recession. Let's take a look.
That old adage, 'A penny saved is a penny earned', still holds true today. When our budgets were flush, a penny or a dollar hardly seemed worth considering. Of course, with inflation, we're talking more like $10 or $20 we spend without even thinking about it until now. So become a nitpicker with your expenses. If you haven't got a budget, you need one! List all of your expenses, save receipts and determine where your money is going. You might be astonished at the waste. For example, maybe you're in the habit of taking your non-washable clothing to the dry cleaners, to the tune of $50 a month. The home dry cleaning kits work great. You may well save $35-40 a month with this easy solution, not to mention that you save more money and time by not driving on this extra errand. Devise alternative solutions as possible.
Our grandmothers often employed the 'envelope system' in order to save more money. Here's how it works. When your paycheck comes in, put a slip of paper with the amount of each bill in the 'payments' envelope and deduct those amounts on the spot from your bank balance. This way, you will not be caught short when the bill comes due. Write the dollar amount remaining in the bank on another slip and put that in the envelope marked 'savings'. Should you need to spend some of this excess, you deduct that expense from your savings slip. This is a psychological strategy that really helps you save more money. You're much more apt to think about whether that expense is necessary and not a result of 'impulse' buying. You may end up with a surplus at the end of the month, with which you can open a savings account at the bank.
Another effective strategy to save more money is to empty your pockets of spare change at the end of each day. This seldom amounts to much, but if you do this every day, putting the change in a jar in the closet, it quickly starts to add up. You just pretend it's not there. At the end of the month, turn in your change at one of those automatic change counters at the grocery or bank. Take the cash and put it in your savings account.
Another habit we've all acquired is that of buying prepared foods. This impacts your grocery bill in a huge way. The more meals you cook at home from scratch, the more money you'll save. Make a huge batch of chili when beef is on sale and freeze in family sized portions. When you compare the cost of a similar amount of canned chili, it's easy to see you save more money and lots of it. Such Saturday morning do-aheads are quite friendly to the food budget.
Another painless way to save more money is on clothing. When kids grow out of clothes every few months, shop the thrift and consignment shops for big savings on quality clothing.
Using all of these strategies results in what? You save more money than you might ever have thought possible. Come holiday gift giving time and you'll have a sizable fund with which to pay cash, saving even more by avoiding credit card interest.
Be vigorous. Make this a family project. Saving money can be easier than you thought!
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