Improve On Your Savings With Simple Steps
June 1st, 2008 adminThe current economic crunch gives more than enough reason to save these days, and if you think that getting by between paychecks are enough to tide you over, the fact is that there is always something you can do to save on money and get yourself a hefty surplus in the long run. From the trifle things to the big decisions, here’s how you can improve on your savings with the simplest of steps.
Every penny you spend on the non-essentials should go to your savings. It’s very easy to lay out a spending plan for an entire week and see where the money goes to; all you need is the drive to stick to such a plan. Don’t leave the trivial things unaccounted for; from candy bars to comic books, try to put down everything in writing. A written overview of your spending habit allows you to see how much of your money is actually going to the needs instead of the wants. Of course, try to implement the need-want principle to shopping as well – don’t shop on impulse, or on an empty stomach.
Try putting yourself on your own payroll. Though this measure may seem strange at first, it is a great way to rack up on your personal savings. Pay yourself at least 25 dollars every week, and keep the money tucked into a cozy spot somewhere and watch it grow. With such an amount you can accumulate as much as 1300 dollars in a year, excluding interest. You should also try to get rid of the urge to cash in on your 401k when you shift between jobs. When employees move between jobs, they are asked to consider on what to do with their accumulated retirement premiums – either withdraw it, or roll it over to the next job. As tempting as withdrawal sounds, the lump sum you receive will be reduced to as much as forty percent of the original amount due to penalties for an early withdrawal. You get more in the long run by rolling it over.
Use your debit card more often, since it is usually accepted in most establishments where credit cards are recognized; the money is also taken from your checking account, and you won’t go over balance with a consumable limit. This shouldn’t mean that you should live without credit cards, but try to use them responsibly; carry a maximum of three credit cards for building credit and for use in emergencies, and keep the balances manageable by paying these off as much as you can, ending up with a comfortable amount of five hundred dollars, tops. You should also assess where you stand when it comes to credit, and because your credit report is the most comprehensive document of your finances, request for a copy at least once a year. Browse through the entries and check for accuracy; you may be charged for expenses you didn’t make. Dispute or confer with any discrepancies immediately to improve your credit score. Your score will make the difference between loan approval and denial in the future; it will also affect your ability to add on to your personal savings, as a low score roughly means that you’re in a financial crunch yourself.