Tips for Setting Aside Money to Save
The trick to saving money is simple, but not always easy: Spend less than you earn. In a consumerist society, it's easy to spend money here and there on things we think we "need" that may turn out to be things we just "want." In addition to paying off debts and curbing credit card use, saving money is a smart personal finance move.
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Get a Baseline Reading on Your Finances
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It's hard to set aside money to save when you don't know the amount you have to work with, so start by mapping out your monthly income and expenses. If you feel that your budget is too tight already, look through your bank statements and see where you can cut spending. Perhaps you have a weakness for going out to eat, or you can't pass by a shoe store without going in to see what's on sale. Some people may have to take more drastic measures like cutting out cable, switching to a cheaper cell phone plan, trading in expensive cars for cheaper vehicles or even moving to a more affordable house or apartment. In order to save money you have to take an honest assessment of your current situation to determine if there is room in your budget for savings.
Sell Your Clutter
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Chances are you have many items hanging around the house that you simply don't need or use. Items like clothes, shoes, DVDs, electronics, furniture, toys and other items can be sold in a garage sale or through classified ads (try free online local classifieds like craigslist.org or ebayclassifieds.com). Keep the things you really like and use, and sell the rest. Most people probably have at least a few hundred dollars worth of items they can sell---many have a lot more than that. This move will fatten your savings account and clean out your house at the same time.
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Live Simply
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Living a simpler life doesn't mean that you have to suffer. It just means that you make conscious decisions before spending. Maybe you can cook more meals at home, shop at thrift stores instead of buying all new clothes, or simply cut back on tempting activities like going to the mall. Find free or cheap ways to enjoy your free time that foster family bonding and friendships. Some inexpensive examples include family movie nights at home, hiking and visiting local museums.
Automate Your Savings
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Decide on an amount of money that you can save out of every paycheck. For some people it will only be $5, for others it may be $50 or $100 or more. Set up your bank account so that your predetermined amount is automatically transferred to your savings account every time you get paid. Not only will you have no time to decide spend it---you probably won't even notice it's missing.
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