With tough economy in the current state it is in, it can be difficult to find ways to save. Most people are trying their best just to pay the bills and even a penny extra seems to go to pay something else off. While saving is more difficult in a tough economy, there are still some things you can do to ensure you have enough put aside for a rainy day, emergency situation or your future retirement.
Smart Ways to Save Money in a Tough Economy
Tough economy, The first step toward amassing a savings balance is to set up a budget. It is amazing how many people go about paying their bills and living their daily lives without ever taking into account how much they have coming in versus how much they must spend each month. Take some time to sit down and calculate your income versus all of your expenses, including both essential payments like your mortgage and less important things like eating out or entertainment. Once you have everything on paper, you may find it easy to cut some corners in a couple of places and put that money away to create a savings account.
After you have created your budget, get creative in thinking up ways to come up with a little money to put away every month. Can you babysit the neighbor’s child one evening a month? Are you an animal lover who would enjoy dog walking in the neighborhood? Do you have some extra items that you could list for sale online? Is there a community yard sale you could join in on? Even a little extra money each month can add up to a lot at the end of the year, so think of every way you have to come across that money, and make sure to save it instead of spending it right away.
Another important tool to remember when you are looking to save is your company’s 401K. Many people invest little or nothing in their 401K even though it is a great tool for saving money toward retirement. Many companies will even match a certain percentage that you put into your 401K, meaning your company is essentially agreeing to give you some free money every paycheck if you are also willing to invest. The money you contribute is even added to your account before taxes, so you are likely to see little or no difference in your paycheck after you invest.
Finally, make an effort to coupon and bargain shop for the things you want and need. Coupons are readily available on many websites and even by email, so you don’t have to cut them from the local paper anymore. Bargain shopping is also easy to accomplish by frequenting warehouse stores, farmers markets and local coop opportunities. Take some time to search out the best deals for the things you use every day, and then take advantage of those specials. When you save a little money on everyday items, put it in your coin bank and let it add up. You might be surprised by how much extra you have to put into savings at the end of each month.
Saving money does not have to be the impossible dream, even in a tough economy. With a few minimal changes to the way you live your life, you can put a little away for a rainy day and still continue to enjoy the lifestyle that you are currently living.
