A Trouble-Free Way to Save Money

Want to know the easiest thing to do with your money? Spend it!

What’s the hardest thing to do? Save it!

The odd thing about saving money is that it’s the one financial necessity you can’t do without.

•To plan for retirement you need to put money aside
•To make ends meet, you need extra cash to survive
•To get out of debt, you must save money

How serious is our debt in the U.S.? The average family today carries $8000 in credit card debt according to the American Bankers Association.

According to a USA Today article, 78% of Baby Boomers have mortgage debt, 59% have credit card debt, and 56% have car payments.

To be truthful, it’ll take a lot of will, discipline, courage and help to slay the debt monster, but it can be done.

From the money experts, let’s look at five ways to start saving money for that inevitable rainy day:

•First, get your finances organized. Take that rainy day, go through your financial records and calculate your monthly bills. The amount you’re spending is a good indicator of how much you’re able to put away.

When it comes to finances, don’t act like a victim and feel like your spending habits are out of control. Take control by keeping track of where your money is going every month.

•Start cutting out everything but the necessities. Don’t panic . . . this won’t last forever. For the time being you might have to do without satellite TV and a cell phone for every member of the family. Ask yourself tough questions: Am I eating out too often? Must I upgrade to an iPhone right away? Can I wait another year to buy a new car?

•Rely less and less on credit cards.
If you must use a credit card, use your debit card instead. There’s no interest! There are exceptions when you must use a credit card . . . buying something over the Internet. Remember this: you do not build wealth with a credit card . . . you give it away.

•Get rid of credit card debt
Check out this no-nonsense advice from RateEmpire.com: “Think of how much you are paying in interest. That amount could be going into your savings and earning you interest. Instead of paying a lender, the bank could be paying you. It is important to get your debt paid off first, then work on your savings.”

•Save . . . save . . . save! Have your paycheck deposited into your checking account; request your employer split your paycheck and designate a certain amount into your savings.

Use your savings account for things that are not due on a monthly basis. However, if you’ve been saving all year, you’ll avoid financial stress for those times when you need extra cash: Christmas shopping, birthday presents, yearly property taxes and unexpected high car bills.

Celebrate every time a debt is knocked out. Financial guru Dave Ramsey suggests we wallpaper one of our rooms with the cancelled bills to show we now live in a “debt free house.”

Use these five steps to help you save money, and you’ll be celebrating soon.

John
Email John: johnsblog@teshmedia.com