How To Save Big Money & Saving Tips
Save big money is often viewed as a painful thing, something that denies you of the ability to spend freely and enjoy your life. However, there are many small things you can do to make the process easier and to help your savings grow more quickly. Read on for some ideas on using simple tactics to reach your save big money.
Paying your existing bills on time can be a big boost to saving money in the long run. Even the smallest of late fees will add up over the course of a year and can also affect your credit rating. The more dings on your national credit file, the higher rates you will pay for credit, insurance and other daily things. Pay bills at least one week before they are due to relieve the stress associated with getting payments in on time. This will also avoid fees incurred as a result of making instant payments online. From utility companies to mortgages and credit cards, most institutions charge fees from $3 to $15 or more for making same-day payments. Also, make sure that you pay before the weekend if your due date falls on a Saturday or Sunday because it will likely not be recorded until the next business day, making your payment late and incurring late fees.
Many banks or credit unions offer auto-save programs which transfer money from your checking account to your savings account on a predetermined day each month. Take advantage of these programs for several reasons. First of all, they encourage you to save and relieve you of the burden of instigating it yourself. They also save you money in another way: the removal of checking account fees from your bank. Most auto-save programs offer free checking and some even provide free checks if you are part of a savings program. In addition, these savings accounts are typically linked to your checking account, preventing you from accidentally getting overdrawn and incurring high overdraft fees if funds are not available when you make a purchase. Remember, however, that there are usually “cash advance” fees of $10 or more if the bank transfers money from your checking account to cover these purchases.
One good way to limit your spending habits is to remember that each dollar you spent was earned by time working for it. Consider how much you are paid per hour at your job, then relate that to any amount of money you are tempted to spend. For example, a pricey pair of jeans could take all the money you earned in an entire day. The same thing applies for going to to eat; a single meal out can reduce your savings considerably that month.
Important Tricks To Save Big Money
One of the most important mental tricks to saving money is to never spend it until you have saved it first. You will be much less likely to spend frivolously if you have worked hard to earn and save that money. Pulling it out of a reserved savings account will feel like an important event, and force you to evaluate whether or not you really want to do that.
Reaching your savings goals does not have to be painful, if you alter your attitude on the small things in daily life. Apply some of the attitudes and insights here to see your savings accumulate, and don’t forget to reward yourself for a job well done.
