save money
Do You Have A Rainy Day Fund?
Saving money for a rainy day is something a lot of people don’t do these days. Starting your rainy day fund now by labeling a money jar and making sure you add money to it every week is a smart thing to do. You can put this money in a high interest savings account or you can stash it at home in a safe place but the sooner you do save some money, the better!
How nice would it be if next time something urgent comes up you (for a switch) don’t have to scramble to come up with the money?
It’s also smart to come up with a goal jar as well to save for special things but we’ll save that discussion for another day. The point is, having to run to payday loan places,to use your credit card for an unforeseen expense, or to have to borrow from family or let another bill slide isn’t conducive to a healthy financial situation. The sooner you have an emergency fund, the better!
Ways to Save for Emergencies:
- Every time you use a coupon, take the money you’ve saved and drop it into your change jar
- Work hard to pay off a debt and after it’s paid take half that monthly payment and use it to top up payments for other debts and put the other half in your savings / rainy day fund
- Every time you save money on a staple item, put the money into your emergency fund jar
- Have your bank take $20 a pay check (or more if you can afford it) and put it into a savings account. After a few pay days you won’t notice that money missing.
- If you get a pay raise, don’t spend it. Take that extra money and put it in your rainy day fund
- Any ‘found’ or ‘gift’ money goes into that jar
- Half your overtime money goes into that jar
- Half your tip money (if applicable) gets saved
- Make an effort to earn some extra income and put half of it in savings /rainy day fund
Once you start making an effort to build a fund and challenge yourself to do it by trying to curb expenses, you’ll find that it’s not restrictive, it’s instead liberating. Challenge yourself to find creative ways to save money and you’ll also be securing your own financial future!
How Much Money Are You Wasting On Bank Fees?
Banks have it pretty good, don’t they? They get to hold our money AND charge us for it. The average person doesn’t make interest on their bank account…they just pay fees. If you’re aware of your fee structure, you could be saving a lot of money every month.
Here are some tips for you to:
Save Money On Bank Fees
- Find out if there’s a flat fee service account that lets you have unlimited transactions. This could save you substantially!
- If you keep your account above a certain balance your fees might be waived. Be sure you’re getting a decent interest rate as well, though. It’s important to weigh your options!
- Don’t use an ATM of another bank. Most banks will include several trips or unlimited trips to your own ATM for free but once you use another machine, you’ll pay not once but twice because your bank will charge you plus the other bank will as well. A $20 withdrawal could be closer to $25!
- Stay out of overdraft unless absolutely necessary! Cancel it if you must! It can be a trap
- Save fees by doing cashback on purchases. If you need cash, the grocery store or department store will top up for you and give you cash back without an additional fee
- Shop around for the bank with the best rates. Some banks even pay loyalty points instead of charging you service fees. Look around for the best deal
- Senior citizens and students often get their bank fees waived if they have the right type of account. Double check available accounts at your bank.
A little goes a long way and you could be spending hundreds of dollars per year MORE than you have to on bank fees. Instead of living with your debit card where you don’t think much about what you spend because you’re not dealing with cash money, consider switching to a cash budget through the money jar or envelope budget. This is a huge way to save money..you’ll actually SEE what you are spending!
Just Say No To Credit At Christmas
The financial pressure is on at this time of year! Don’t blow your budget at Christmas if you can help it! The spending season is fast approaching and a lot of people make a big mistake at this time of year. They put Christmas on credit! Big mistake!
Sure, it’s the season of good tidings and cheer but do you want to pay for it all next year?
Not only will you suffer next year but you’ll probably only make minimum payments which will mean about 10-30% extra will be spent on interest so if you spend $1,000 on Christmas gifts, how much will it really cost you by the end?
This is the time of year the stores prey on people. They stand by the front of the store and offer you a free pen or a 10% discount if you’ll apply for a credit card. They’ll also often grant a temporary credit card on the spot to ‘get’ you before you’ve had a chance to consider. Impulse buying is the # 1 love of the credit card companies. Store credit cards are even worse because you don’t get to shop around as you can only use the card at one store.
Cash is King! Christmas Shopping Tips
Use cash for your shopping this season.
- Shop around. You’ll get better deals
- Haggle. When buying big ticket items & dealing with cash you can often save 10-20%! Make an offer!
- Set limits with family and friends so you don’t go overboard
- Shop early for next year. Start boxing week to shop for next year for things like decorations, gift wrapping supplies, stocking stuffers, etc. It’s amazing how good it feels to get started early!
If you’re in a pickle this year because you haven’t saved enough money for Christmas shopping, there’s nothing wrong with deciding to do things on a small scale. Making homemade gifts or doing gift baskets with less expensive items (but with a more personal touch) can save you money. You can find lots of low-cost gift ideas that will result in a gift that doesn’t look or seem cheap to the recipient. Next year, plan early and consider opening a savings account and having automatic withdrawals from your pay into that account to ease the pressure. If you’re doing a money jar budget, you can also allocate a Christmas fund early in the year.