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Are Times Rough? You Can Still Fill Your Savings Account |
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Written by Shaun Connell
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Wednesday, 15 April 2009 12:05 |
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When you're broke, saving money is the last thing that's on your mind. It seems like the advice you read about putting money away every month is targeted at people who actually have money left from their paychecks. A lot of Americans don't fall into that category.
by ShaunConnell
When you're broke, saving money is the last thing that's on your mind. It seems like the advice you read about putting money away every month is targeted at people who actually have money left from their paychecks. A lot of Americans don't fall into that category.
Let's look at the facts:
-The median income in 2007 for households was just a bit more than $50,000.
-A whopping 37.3 million people live in poverty, with a median income definite of $8,523. The income deficit indicates how far a family's income is below poverty level.
-Nearly 46% of Americans live without health insurance.
The above facts allow us to understand that many, many Americans are simply unable to save money because they don't have the money to save in the first place. You may or may not be part of these categories of people -- but perhaps you'd like to save money and aren't able to simply because you don't' have the money to do it. Remember, when it comes to financial planning and personal finance, almost anything is possible. You can save money almost regardless of your situation.
Remember the childhood story The Little Engine That Could? In the story, there was a little blue engine that was charged with the great task of pulling a heavy train over a mountain. The little struggled and strained, but ultimately made it over the mountain by repeatedly saying, "I think I can."
Think back to the stories you learned as a child, such as the little engine that could. In the parable we read of the little blue engine that was charged with the great task of taking a large train of toys over a mountain to the children on the other side. The little engined struggled, and it seemed impossible to achieve its goals -- but in the end the train succeeded because it refused to accept defeat, and told itself, "I think I can, I think I can."
You might not be as broke as you feel, but if you're not disciplined with your money, you could spend it all before your next paycheck comes. If you aren't paying attention to where your money goes, you could think you're spending more on expenses than you really are.
You might actually not be as broke as you feel, incredibly enough. If you aren't extremely disciplined with your money, then you could be spending it in small ways you hadn't considered before. By noticing and tracking every dime you spend, you can find pockets of waste, and financial mistakes. This step alone could save you hundreds or even thousands.
Just take all of your expenses and write them down for a month. Everything from your bills, to meals, to movies, to, well, everything. Ask for and keep your receipts and withdrawal tickets. Save all bank statements and credit card statements. Save everything.
Now go back through all of your spending at the end of the month. Categorize it all. Add up what you spend for each category. Notice any of your categories that include especially high levels of spending, such as entertainment -- areas like these are your best shot for cutting down to put towards a high-interest savings accounts.
When it comes to cutting back, sometimes you have to make some tough decisions about what you're spending money on. For example, you can't just ditch your car note, but maybe you can trade-down to a cheaper model. The same thing goes for your mortgage payment. While you can't just stop paying your mortgage, you may be able to shop around for a home with a lower mortgage payment.
Look at every single expense in your budget and evaluate whether you could switch providers for a lower monthly cost.
Information:
Now that you've learned how to better save money, make sure you have found the best online savings accounts that the author of this article has researched. With one of these accounts, you'll be able to put your savings on automatic. |
