Save Money for Things You Want
Tired of not having enough money to buy things you want, like an iPod? Or that next generation gaming console? Read this article, and you will be saving money you didn't even know you were spending.
Contents
Steps
- Start by opening an account at a credit union. (The benefit of using a credit union instead of a bank, is credit unions are non-profit. Unlike a bank, they aren't trying to make money off you with fees.)
- Put some of your money from each paycheck into a savings account. The interest generated will help you in the long run.
- Increase your monthly savings amount next time you get a raise.
- Put any bonus money in this savings account as well.
- Once you have enough money in your savings account to meet opening balance requirements for a mutual fund, open a more aggressive investment vehicle, perhaps a stock index fund. This will grow faster than a savings account, which will never keep up with inflation.
- Set a limit on going out to eat. Stick to one time a month , for example. Making dinner at home will be more cost effective and if you go out infrequently, you will enjoy it more when you do go out.
- Don't buy things you didn't plan on buying. Example: don't buy the magazine at the checkout stand.
- Buy an EE bond, and let it collect interest for 30 years. you can possibly make ten times what you paid for it. However, be aware that bonds are a very low yield investment and probably won't beat inflation. So though you will feel richer in thirty years, your money just won't buy as much as it buys now. Bonds will keep you safe but won't help you get rich.
- Don't buy coffee every morning. Make a pot of it at home, and put some in a portable container and take it with you.
- Keep bottled water in the car so you won't have to stop to buy a drink when you get thirsty.
- Choose hobbies and past times which are not particularly expensive. Wait until you are older and richer before starting a wine collection, and before learning to play golf, for example.
- Buy a small house. Small houses are cheaper to furnish and you will pay off the mortgage faster too.
Tips
- If you are going shopping for something specific, only take the money you need so you aren't tempted into buying anything else while you're there.
- Think about the thing that you want. Think about how happy you'll be once you have it, that will further increase your incentive to save.
- Don't waste your money on what you don't need or want.
- Hide your money out of sight. Out of sight out of mind right.
- Buying groceries in bulk is a steal, but it is unclear for whom. You may be spending a lot of money on bulk items you are not going to use.
- Don't buy books. Visit your local library instead.
- While you are there, pick up a book on being thrifty. There will be hundreds more tips like these in any one of those books and chapters to help you change your mindset about how you spend your money.
- Buy a piggy bank and start saving up money in it.
Warnings
- Don't spend frivolously, no matter how much you make. Why do you think so many celebrities go bankrupt?
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