Need to Save Money?  Here How!

According to the U.S. Department of Commerce, Bureau of Economic Analysis, as of December 1, 2012, the Personal Savings Rate in the United States was 6.5%.    This is based on savings as a percentage of Disposable Personal Income or DPI.

DPI is defined as the total amount of money available for an individual or population to spend or save after taxes have been paid.

As we struggle with the economy and the sequestration furloughs,  and look for ways to increase our savings or just maintain what we have, here are a few ideas for you to put into place.

1. Each night when you come home, empty your pockets and put any change into a jar to save.  You’ll be surprised how quickly it can add up.
2. Quit smoking and save on average about $6 per pack.  If you smoke 2 packs a week, that’s $624 up in smoke.
3. Put that lottery ticket money you spend each day into a savings account instead of funding the state.  They tax you enough as it is.
4. Take your lunch to work.  $10 a day is $50 a week or $2600 a year you could be saving.
5. Consider a second job or part-time business opportunity.  Use it exclusively for savings goal or paying off debt.
6. Transfer balances from high interest rate credit cards to lower rate cards.
7. Instead of paying extra to pay down a lower interest mortgage, instead use the additional to pay 12% to 24% credit card balances.
8. Save for your purchases instead of using credit cards
9. Tithing is a great way of budgeting – it forces you to live on the 90%.
10. Pay Yourself 2^nd.   Start off saving at least 5% of your gross income and build from there.
11. Current practice calls for creating an emergency savings fund equal to 3 to 6 months of your living expenses.
12. Consider a whole life insurance policy as an alternate savings vehicle.
13. Comparison shop for your credit cards, home owners insurance, life, auto insurance and home telephone and cellphone services.
14. Take advantage of payroll deduction plans for retirement and savings accounts.  Payroll deduction is a painless way to save.
15. Begin putting together a cash flow plan for your family (budget)
16. Make a weekly or bi-weekly commitment to review the family finances with your spouse.
17. If you regularly get a tax refund, it means the IRS is getting an interest free loan from you.
18. Save Your Tax Refund or use it to help pay off any outstanding debts.
19. Clip those newspaper and sales paper coupons and use them before they expire.  Buy only if you need to not because something’s on sale.
20. Use Groupon, Living Social and other social media sites as savings resources, too.
21. Work to improve your credit scores – the higher your scores, the lower your loan interest rates.
22. Save your next pay increase.

Lastly, be willing to make the hard financial choices and stay the course.  Being debt free and under financial control will relieve much stress and tension from you and your family’s lives.

Need a good “cashflow tool”?  Click here and take a look at the video.  It’ll be worth your time and effort.

If I can help you with these and other financial issues, including tax planning and preparation, business consulting or incorporation services, please feel free to give me a call or visit my website at www.flemingfinancialsolutions.com and schedule an appointment.