How to Save Money

Everyone wants to save money because whether we like it or not, we need it to buy the essentials or we wouldn’t be able to survive. So how can you save money if you only have a low income job or part time job and everything seems so expensive? Simple, by looking for hidden savings in your work and in your home.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Willpower
• Savings accounts
• items

1. Investing in your companies 401k plans and flexible spending accounts, if offered are a great way to save money. 401k's are retirement plans where money that is taken from your paycheck, is invested in stocks. This plan is designed to add to your income during retirement.
   Most companies that offer this will match you a percentage of the money that you contribute on a weekly basis. So if you request that 2% of your income a week be invested into the plan and your company matches 3%, you will have 5%(your 2% + your company's 3%)going towards the plan. But it can be costly too. If money is withdrawn before age 59 1/2 your accout is going to get up to 20% or more of taxes. The best way to take money from these accounts if you absolutely need to, is to take a loan. Just like a regular loan you will be making payments with interest, but the difference is that you will paying yourself back instead of the bank. But remember that once you take the money out of your account,even if it is a loan, there will be less money to invest with than if you had left the money it in there. If you want to see more money when you retire, leave it there unless of course it is an emergency.
2. Flexible Spending Accounts Flexible Spending Accounts are accounts in which you set aside a pre-tax amount for qualifying dependents (someone that you can claim on your income tax) care or for health care costs that your insurance does not cover. They are taken out of paychecks before taxes and are put aside until you send in reimbursement forms with receipts to get your money back.
3. If your company doesn’t offer any of these programs,then invest in a christmas or vacation club account. At most credit unions you can invest in a Christmas club or vacation club, (the name may vary by credit union or bank) in which you designate a weekly amount to be deducted from your paycheck and it is saved for you after a set period of time usually a year. This is a great investment if you want to take your family on vacation or on a cruise.It is similar to a Certificate of Deposit but without the interest and there is no specific minimum amount of money required to open the account.
4. CD's Certificates of Deposits or CD’s are another great way to save money, but with this account the amount you need to deposit could be as low as $2,500 but will depend on the bank you go to. The money is put away for a set amount of time, depending on the banks, and interest is earned on the money that is put in.
   
   The interest can vary by the amount of the initial deposit ( the money you use to open the account) and the length of time that you are leaving the money into the account.
   
   With CD’s though, you can’t withdraw from the CD without getting hit with a penalty,almost like interest,unless the account was setup to allow you to take money out without having to pay a fee for doing so. But they are a good investment if you have the money to do so.
5. If you don't have that kind of money to invest in a CD, you can also try the regular savings account without the ATM card and have a specific amount directly deposited. Keep the account seperate from the other accounts that you use on a regular basis. Before you know it, you will have a pretty nice amount at the end of year because you will be forced to have to go the bank if you want to withdraw from this account.

Tips & Warnings

• You can also look for things around your house that you may not want or need and if they are in good condition, you can have a garage sale or sell it on the internet on sites like eBay or Craig list.