Everyone has their own methods when it comes to saving money. I've tried a lot of different options, but I always ended up saving too much of my money, and I would end up having to dip into my savings and then feel guilty afterward. Lately, I've been using a new method that seems to be working. Now, what I do, is I save whatever is leftover in change from what I am paid. I get paid per job, so say there is 7.50 in change, I will put that away. It doesn't seem like a lot, but TRUST me, it adds up quick. It's been great when it comes to budgeting my money. I am able to have some spending money, and then have some savings so that I don't have to worry as much. What is your method of saving?
Personal Finance is very important. Saving schemes are so many but to me personally, I use the CDRW personal finance method. C for improving my Cash Flow, D for reduction of Debt if any, R is for Risk management, meaning, I also have to get myself insured and fill up my emergency fund and W - is wealth management, that if I have more cash to spare, I will find a place to invest it. If you are interested to know more about this idea, you can google it and it is really amazing because it will surely lead you to financial freedom.. not just having a lot of savings.
To be honest, I haven't been able to save in many years.There never seems to be anything left for savings when I have paid everything else. That being said, in January I started to throw loose change into a jar and its starting to add up. To avoid going into the jar when I get a bit short at the end of the month, I have glued the lid on. Of course, there is always a way to get into it but its not easy and generally I leave it alone. I will try and continue to do this for the full year and see how much I have in savings. Good luck to both of us @RomanAnthonysMama
I guess it's all about having a system that works for you. But as long as you have a system. I used to take 10% out of my pay packet on payday, but these days I don't have consistent earnings so I've had to adapt. Simple things like having a jar wear I put all my coins may not seem like an act of saving but it is a way of putting money aside without even thinking about it.
With a regular paycheck, I do a combination of things like brown bag lunch, clip coupons, and buy in bulk when possible. New methods I'm trying to integrate are mystery shops with regular errands, selling content directly to clients and use an ongoing residual system. Instead of saving a few dollars for a rainy day, I'm looking at micro-investments like CDs.
Additional tip to save is to AVOID BUYING ITEMS THAT EXPIRES EASILY IN BULK. You see, I live alone and I always want to drink milk before going to sleep.. so to avoid having to passby the store every now and then exposing myself to more things to buy.. I bought a litter. I always have to throw the excess away because I could not drink it all before it expires. sometimes, it is because I forget to drink it.. or just I am lazy.. so I buy fresh milk in a box.
This is a real Greg area for me. Saving is difficult. I have read what everyone has shared, to get insight and inspiration, because I know how very important saving is. Those rainy days are real, and I always suffer. I have to start and be committed. I often get frustrated by the small amounts I am able to put aside. Perhaps it doesn't matter how small the amount you are saving, as long as you are doing it. I am a proponent of consistency, so this is one area I need to step up my game.
I totally love this idea about gluing the lid on!! Brilliant! I find that I spend money out of habit, or I spend because I just have to have a certain thing right now! instead of waiting until I can really afford it. Putting glue on the lid of a savings jar will give me just enough time to re-think spending my change, as opposed to be able to quickly open the jar without any resistance at all, and I'm out the door spending.
Saving money is a huge key in feeling financially mature. I don't save a lot of my money, and I don't correctly budget the money that I do get, and end up sometimes having to borrow money from my dad, or from a friend. But, 2015 is a new year and I need to work on my financial habits. For me now, saving consists of just trying not to spend money just because I have it. This is especially important when I feel like I need things. They are not really needs, they are wants. Like this past Friday, I felt like I needed to go to the store and get some stuff to eat for over the weekend. My son didn't feel like going shopping, so we didn't go. Well, as it it turned out, I just had to get creative, and put together some things to cook that I normally wouldn't have had I gone shopping on Friday. As it stands now, I realize that I didn't have to spend any money on food for the weekend, although I would have, had it been left up to me. So yeah, just learning how not to spend unless I really have to is key for me right now.
Glad you like it @Winnie ! Years ago when I worked outside the home and had a better income, I did spend just for the sake of spending, so I fully understand that phenomenon. These days there is no extra money to play with (so to speak) so its no longer an issue for me.
My savings method consists of saving a portion of my full-time income and a huge chunk off my freelance earnings, which I let accummulate in PayPal until the amount hits my target savings goal. I then transfer everything to a single savings account and I refrain from touching it as much as possible. I set aside a different budget for food, clothes and random luxury.
This will probably sound crazy, but we live off one salary and save 40% of it. The second salary goes 100% into savings. But we are slightly older, so as we got raises we never altered our initial budget that we've been on since we were in our 20's. After so much time has passed we are perfectly happy living with our minimal needs. Also it is nice to finally be able to afford a luxury item once in a while now, since we've been so tight for so many years. But I will admit I think we are kind of extreme.
Wonderful! I have instantly fallen in love with the CDRW personal finance method. All this time I think I have been managing my personal finances wrong. I've been investing in stocks yet I don't have any emergency fund stashed up somewhere, so whenever an emergency comes up I find myself borrowing(credit card). This has made my debts increase every time. Thanks for that wonderful insight, I now know what I'll have to do.
Right now I am using the "piggy bank" method of saving. I put random change and dollar bills in my decorative box each and every day. It does add up over time and is well worth the effort. The great thing about saving in change is that I am rarely ever tempted to pull money out of there because it would mean paying for my purchase in change or using one of those spend change counter machines. When my box starts to fill up, I feel accomplished. I also save money I earn doing my online surveys in my PayPal account and just don't touch the account until I really need the money to pay a bill or something.
I use a lot of Dave Ramsey's tactics for saving money. The first step was of course to get out of debt. It's amazing, once you aren't forced to pay everyone else your money, (debt) you can really save quite a bit of money. Once you have enough money to survive emergencies, it is time to make your money work for you. Investments.
I agree with you Eagle. I am feverishly trying to pay off debts right now and not really spending money on myself. It is a small price to pay for getting to the end goal, which is financial freedom. Once the bills are all paid off, I will really have money to spend on myself and it will feel good not having to worry all of the time
