Every dollar counts when saving money
It can be very hard to start saving money, we all just want to wake up and find $50,000 worth of savings stashed away and ready for that home deposit we want right now.
Unfortunately that is not how saving money works, so instead we need to change our thought process on saving money to truly get the old savings account working over time and our net worth growing rapidly.
So how should you think about your savings plan? Think of it using the old fashioned saying ‘Every dollar counts‘. It is true, if you watch every dollar you spend, save and invest – you will be on the road to having a lot more money then the next person.
Here are some easy ways to save some money and a few of the common traps for losing money that could otherwise remain in your savings account working hard for you.
Saving Coins
Always keep your 5cent or 10cent coins, create a coin jar at home in which you empty your coins into each night. They add up very quickly. You could also do what I do and make small piles of coins that equal $5, that way I can grab $5 as I am leaving the house to take to work – effectively using up some of the coins and avoiding going to the ATM.
Do you get paid in cash?
Take it to the bank right away. The less cash you have on you, the less chance you have of spending it. Why not have two bank accounts, one to deposit 70% of your pay into, and other to deposit 30% of your pay into. That way you have an account adding up with 30% of your pay each month that you are not touching.
Get rid of your unwanted stuff!
Get rid of stuff you no longer need. eBay it for some money, have a garage sale, sell it any way you can, it is better to have $1 for an old text book then have it sit on your shelf gathering dust.
Traps for losing money
- Buying drinks for your friends. At the time you don’t worry because you are enjoying yourself, but it is a lot of cash to spend for the sake of a good time.
- Borrowing from your savings account. Let’s face it, if you dip into your savings account then you are less then likely to pay it back. Try not to touch it at all.
- Lending a few dollars here and there to friends can add up. Imagine if you never lent money to people. You would have $1000′s. Doesn’t mean to say you are cheap, as at the end of the day – you worked for it.
- Avoid fines. Late fines on phone bills, late fines on videos, parking fines, speeding fines. AVoid them at all costs. A parking ticket can cost you $100. That is over 3-4 hours of your time at work gone, you may as well work for nothing!
- Gambling – if you gamble, you are statistically proven to lose money. Save the money instead and buy yourself something nice or pay an extra payment to your mortgage.
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