Saving money may seem difficult at first because we
want so much and we want it now. Saving instead of
spending is always a trade-off. You must deny yourself
something you want today in order to provide the money
you will want or need tomorrow. Just as credit is a
delayed expense, think about saving as delayed spending.
How can your improve your ability to “no” when you’re
tempted to use too much cash and credit today? Try some
of these tips for making more money available for saving.
1. Consider which of the things that you want to buy are
not really “needs,” and decide to do without some of
these “wants.” Remember the old saying, “Use it up,
wear it out, make it do, or do without.”
2. Plan your purchases for each pay period and then buy
the true necessities first. If something in your budget
costs less than you expect it to, put the amount of money
you didn’t have to spend into your savings!
3. Think about the brands you buy and where you shop.
Much of what you spend goes for costly advertising
budgets and overhead costs due to store location and
decoration. Would less expensive or generic brands
meet your needs? Does the product have to be new?
Do other stores carry the same items but charge less?
4. Think about and practice ways to cut spending
(which will let your increase your savings), such as
reducing: meals eaten out; auto trips; use of credit
cards for small items; high-cost brand name products;
and clothes that require ongoing, expensive
care. Remember the saying, “Waste not, want not.”
5. Reducing household waste will also reduce costs and
permit more savings. Don’t buy things you don’t
need. Choose items without unnecessary, expensive
packaging. Select items that can be used again and
are made well enough to last a long time. Choose
items that can be recycled and then recycle them. Buy
things that have been made from recycled items, to
“close the recycling loop.”
6. Decide upon a reasonable amount of personal money
for each family member so that everyone has a little
money to spend or save as they choose. This can be
an emotional safety valve and reduce the temptations
of impulse spending.
7. Wait for and take advantage of genuine sales,
especially for expensive items. This means using
savings for a true bargain—something you need and
would buy anyway. Getting such as item at a
reduced price will permit you to save the difference
between the regular price and the sale price. But if
you buy something you don’t need and can’t afford
just because it’s on sale, you are not saving money.
You are simply spending more money than you had
planned to and reducing the amount you can save.
8. Return faulty products and get your money back.
(Of course, you will also save money if you learn
how to judge the quality of different types of
consumer products and reduce the number of
unsatisfactory purchases.)
9. Read the directions before using a consumer
product so that you don’t cause a problem, wasting
money to replace items you damaged.
10. Take care of products so that they last a long time
and don’t have to be replaced so often.
11. Consider using free time and abilities to earn extra
money or to provide goods and services for your
family that will reduce the cost of living in costeffective
ways.
12. Take care of your health and follow good safety
practices. More than half of all health care expenses
are caused by lifestyle choices—things eaten or
ingested, avoidable accidents, lack of exercise. Health
care and health insurance are too expensive to use in a
casual, wasteful manner. By avoiding or at least
reducing those costs, you will free up money for other
things you want and need in the future.
13. If you need to purchase services you are not
familiar with, get information about the service and
try to get personal recommendations of persons or
companies with a good reputation. Be sure you
understand the terms of any agreement you sign.
14. Save money on insurance by insuring only against
large losses. You can reduce your premiums with a
larger deductible. If you save and invest the money
saved through lower premiums, you may be able to
pay future deductibles.
15. Put the money that you work so hard to earn to work
for you. Putting even small amounts of savings into
appropriate types of investments can demonstrate the
truth of the saying that “it takes money to make
money.” Pay attention to such things as minimum
deposits, and avoid unnecessary charges for interestbearing
accounts. Read the small print and avoid
accounts that would penalize you if you plan to
withdraw money more often or sooner than the
account permits.
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