The Importance of Building a Nest Egg
Saving money for a nest egg is important for you family. However, in today’s economy, after all bills are paid at the end of the month, sometimes there is no money left to save. You may not think it is possible, but with some planning and changes in family spending, you can have enough to save. If you want to learn how it can be done, read this article thoroughly for some great advice.
You can start to save money by creating a family budget that factors in saving. Write down how much total income that your household brings in. This includes everyone’s salaries and any other money that is coming in every month. Next, figure out what 10% of that is, and put it in a category called “savings”. What you have left will be all of your expenses. Write down everything that you pay for every month, including housing expenses, car expenses, utilities, insurance, food, clothing, and anything else that you need to pay monthly. After you have identified these, start allocating the 90% that you have left from your household income to these expense lines. When you are done, your total expenses plus savings should equal to your household income. If your expense total is larger, you need to review your list of expenses and start cutting where you can cut. You will not be able to reduce your fixed expenses, but you can reduce spending on food, clothes and anything else that is a variable expense. Try not to touch the 10% allocated to savings because your goal of this budget exercise is to find money to build a nest egg, which is your savings.
Saving Money Tips- Ways To Build Your Nest Egg
One major expense is how much you spend on groceries. You can reduce grocery costs by joining your local supermarket’s reward program. Almost all supermarket chains have some kind of membership club now, where members can get special discounts on groceries. Also, learn how to use coupons efficiently. There are websites devoted to coupons, and you can usually find some on grocery items that you plan to purchase. When you shop, buy in bulk which always has the lowest unit price. Avoid buying things at full retail price. If you are not in a hurry to get it, wait for a sale on the item.
You can save on utilities by limiting its use. On hot days, do not leave the air conditioner on all day. Cut its usage by half, and use a fan as a supplement. On cold winter days, just turn the heat on half the time and wear more clothes at home. Make sure that you home is well insulated to keep its interior temperature constant. Power down all electronic equipment when not it use.
Save money on children’s clothes by shopping for gently used items in consignment stores or craigslist. Children grow out of their clothes quickly. So, there is no sense in spending a bundle on something that they cannot fit in six months.
There are ways to save money for your next egg if you are willing to make some changes in your life. Follow the advice in this article, and you can start building that nest egg for your family.
