10 Ways to Save

10 Ways to Save

By Patrick McKee - Anchor

#1 Make a spending plan

  • When making a spending plan, know exactly what you are spending
  • Look back over past credit card and bank statements.
  • Try to save 10 percent each month.

#2 Set specific savings goals

  • Make savings goals specific instead of vague
  • Set both a dollar amount and date
  • Post your goals as a reminder

#3 Emergency fund

  • 39 percent of Americans cannot cover a $1,000 expense
  • You should have three to six months of household expenses saved
  • Make small goals and celebrate when you reach them. Then, build on that success.

#4 Automate savings

  • Saving money can be a mouse click away.
  • Online banking at many credit unions and banks allow you to automatically transfer money from your checking account to your savings.
  • You can also let your boss do the work for you by having your employer do it on payday.

#5 Unsubscribe from emails

  • Americans are exposed to 362 ads per day.
  • Avoid temptation to spend by unsubscribing to marketing emails.
  • If you shop online, add items to your cart, then walk away for a couple of days to see if you still need it.

#6 Look for snowflakes

  • Americans have more than $1 trillion in credit card debt.
  • When shopping, look at your savings at the bottom of your receipt.  Use that money to pay down debt.
  • Also use yard sale proceeds, tax refunds or money saved by canceling subscriptions.

#7 Envelope system

  • Use the envelope system to limit discretionary spending.
  • Once a month or on payday, put money in envelopes for eating out, clothing, entertainment, etc.
  • Once the money runs out, the spending stops.

#8 Saving for retirement

  • A 401(k) is one of the biggest ways to save for retirement.
  • Make sure you contribute at least enough to get the full match from your employer.
  • Contributions of $5,500 can be made to an IRA.

#9 Review subscription services

  • Review subscription services to see if you still use or need the service.  If not, cancel it.
  • See if there is a smaller, cheaper plan you can switch to.
  • Try to negotiate a lower price or get a promotion rate for services.

#10 Paying off credit card debt

  • The average American has $3,000 in credit card debt.
  • If the interest rate on your cards are about the same, pay off the one with the lowest balance first, then the next lowest.
  • If one card has a much higher rate, pay it off first to save interest expenses.

Copyright 2018 by WSLS 10 - All rights reserved.