How To Save $5,000
MSN Money suggests that aiming to save $5,000 by the end of 2012 is a possible goal. Even more than that, they suggest it could be a new years resolution. It’s a big number, and one that can be confronting when we think about all the other places our money needs to head. But aiming to save $5,000 will not only do wonders for your bank account, it’ll do amazing things for your financial behaviours and your ability to take on opportunities when they occur. Here are some tips if you’re keen to take the bold step.
No Dial Tone
For years, we all walked around with fax lines and land lines and mobile phones, but the costs it can incur are unnecessary. You can fax from your local post office, and your mobile phone is generally as good as a landline. Losing a one or two extra phone lines can save you up to $800 a year. It’s also worth investing some time in looking at your mobile phone usage- where and when you spend the money, and talking to your provider about switching to a more suitable plan.
Running Costs
The way we run our homes is not only bad for the environment, it’s also bad for the hip pocket. The best part is that it’s not that hard to remedy. You don’t even need to go out and buy new whitegoods, though when you replace anything, try and find one that runs efficiently. Invest in a thermostat, every degree you raise or lower your house’s temperature costs a significant amount over the following year. Buy $5 timers to turn your heaters on just before you get up, or just before you get home from work. There are also easy-access switches for powerboards that turn all your appliances off at the wall every night so as not to waste electricity with all the usual standy-by offenders (and without having to wreck your back by climbing over a television and under a heater to get to the powerpoint). Some even come with a remote.
Insurance
What worked for you a couple of years ago doesn’t necessarily have to work for you now. Your insurer may have been the best thing on the market when you signed up, but do a bit of a reconnoitre to ensure you’re not paying more than is necessary. it’s also worth checking whether someone can offer you a better deal if you bundle all your insurance with the one company.
Where To Put It
Ah, the immortal question. According to the MSN Money article, it all depends on whether your goals are short-term, mid-term or long-term. If they’re short-term, you need the money to be in a place you can access it relatively quickly, like a savings account or a term deposit. If the goal is in the mid-term, say in the next 5 to ten years, then bond funds might be the ticket, a particularly good option at the moment. In the long-term, stocks are an option though that, of course, depends on your risk tolerance.
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