With the average American save more than $ 400 a year, it seems quite clear that we have a problem with money. Add to that the statistic that the average American household debt is transferred to the $ 100,000 (which includes secured and unsecured debt, including home mortgages), it seems quite clear that we are also tight budgets. So how do you save money and create wealth when you’re barely making ends meet and trying to dig their way out of debt on a tight budget? Here are five tips to help you get started.
1.Track all your expenses for at least a month and see where your money goes. When I say I did it all. If you buy a pack of chewing gum to replace your console, write it down. I found the best way to keep track of my expenses is to ask every time of receipt, if I pay the debit, check or cash. You do not have receipts for ever, but this is the best way to determine where your money is going and whether there are any places where you can save money.Usually people are not as overextended as they think they are. We say we live paycheck to paycheck but in reality we are a “treat yourself” on a fairly regular, which grows to a large sum of money over time.
2.Make your own automatic savings plan. If your company offers direct deposit, which is paid each paycheck into a savings account. If your company does not offer direct deposit, check with your bank or credit union will automatically transfer money from your checking account to your savings account a month – or even better – every time you pay for.
3.Put your loose change in savings. Instead of throwing your change your hairdresser or your console, and then raiding now and then for the purchases of the money down to your bank and deposit it into your savings account. It adds up faster than you think. Even a small jar can hold a large sum of money to change!
4.Take advantage of free money. If your company proposes to bring the pension funds, make sure you contribute at least match the amount of your pension fund – otherwise, you’re throwing away free money every stage!
5.Look for deals. Not everything you buy must be brand new. In fact, you will save thousands of dollars when buying a new used items. Some people do not like the idea of wearing clothes to wear. I actually found a brand new, tags-still-on deals that cost the original buyer to hundreds of department stores, for whatever reason, the clothes have never been worn and turned over to the consignment shop for the lowest price.
Cars are another thing, you do not need to buy a new one. This brand new luxury car loses thousands of dollars as soon as you drive a lot. In fact, it will lose 15-20% of its value during the year. So why in the world would I want to spend $ 25,000 on a brand new car, so I can buy for $ 16,000 after two years? Why not let someone else take that hit? I’d rather buy a new leather air freshener and save $ 9000 instead.
This is only a tip of the iceberg. ” I guarantee you that if I went through my bills and receipts for the month I was able to find ways that can save you money. My best advice is to start saving today – even if you start small. You’ll quickly develop the habit of saving money and be able to increase its savings rate so you can stop being broke and start building wealth.