Michael Keith Gaines
3 April 2013
Ways to Save Money
Saving money is one of those tasks that are so much easier said than done. There's more to it than spending less money. How much money will you save, where will you put it, and how can you make sure it stays there? Here's how to set realistic goals, keep your spending in check, and get the most for your money.
The first way you can save money is by killing your debt first. Simply calculating how much you spend each month on your debts will illustrate that eliminating debt is the fastest way to free up money. Once the money is freed from debt payment, it can easily be re-purposed to savings. Plus, the sooner you pay off debt, the less interest you'll pay, and that money can be saved instead.
The second way you can save money is by setting savings goals. For short-term goals, this is easy. If you want to buy a video game, find out how much it costs; if you want to buy a house, determine how much of a down payment you’ll need. For long-term goals, such as retirement, you’ll need to do a lot more planning (figuring out how much money you’ll need to live comfortably for 20 or 30 years after you stop working), and you’ll also need to figure out how investments will help you achieve your goals.
The third way you can save money is to figure out how much you’ll have to save per week, per month, or per paycheck to attain each of your savings goals. Take each thing you want Gaines 2
to save for and figure out how much you need to start saving now. For most savings goals, it’s best to save the same amount each period. For example, if you want to put a $20,000 down payment on a home in three years, you’ll need to save about $550 per month every month. But if your paychecks amount to $1000, it might not be a realistic goal, so adjust your time-frame until you come up with an approachable amount.
The fourth way you can save money is to keep a record of your expenses. What you...