Five Money Saving Strategies That Work

Mike Valles By Mike Valles, 21st Mar 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/202u9hjg/
Posted in Wikinut>Money>Money Saving Tips

Saving money is a great way to prepare for short and long term financial goals. You need a strategy to help you reach your goals and to prepare for your future. Here are five ways you can save money more effectively.

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When it comes to enjoying daily life, or a future retirement, one of the most important things that you can do is to save money. Having short and long term savings goals enables you to buy those special things when you want them, and also to have a more comfortable future. Here are five money saving strategies that will help you put more money away.

Create a Family Budget

One of the most important things you can do to save money is to gain control over your monthly finances. Making a family budget will let you see where you money is going and it will also enable you to stop the money leaks. Before you make your budget, though, you will need to keep a close record of all your expenditures for about a month. This will enable you to see where it is all going. Then you can determine where you can cut unnecessary expenditures and have more money to put away into a good savings plan.

Put an End to Unnecessary Purchases

Most every household or individual has some holes where money is going on a regular basis that is not a necessary use of your hard-earned money. It is a luxury that you can do without. Writing down every one of your purchases for a month will help you identify waste and then get down to a more practical budget. If you look at your purchases, you may find things like a gym membership you are not using, a top-notch cable or dish package whereas a lower cost version will be just as good, paying too much for car insurance, etc.

Seek to Reduce Debt Quickly

For most people, there are ongoing payments being made on your debt. This is true whether it is for a car, or college education, or credit card debt. What many people don't realize is that if you were to put that same amount of interest that you pay to the lender into your own savings program, you would have a sizable savings account!

Instead of putting any more debt on your credit cards, don’t use them anymore and pay them off one at a time. Always be sure to pay the minimum each month and then pay more. It is best if you pick the smallest debt you have, pay it off, and then put the same amount of money toward your next debt.

Choose Savings Programs with Better Interest Rates

There are many places to save money, but just putting money into any savings program is not the best way to do it. Look around for banks or other places that offer the best interest rates. If you just want a regular savings account, be sure to check into online banking, too, because they offer higher interest rates than most traditional banks.

Choose Longer Terms When Possible on Various Savings Instruments

Tools for saving money, such as CD's, offer a higher rate of interest if you let the bank have your money for longer terms. When possible, choose longer terms, but be sure to keep some money in a more liquid state in case of emergency, or the penalty will hurt your interest.

There are many tools around to save money that will give you better interest rates. One of the best money saving strategies you should use is to diversify the instruments used for building wealth of any kind. Generally, you are better off if you use different institutions and do not put all your eggs in one basket.

Tags

Family Budget, Finances, Money Saving Strategies, Save Money, Savings Plan, Savings Program

Meet the author

author avatar Mike Valles
Hi. I have been a full-time freelancer for over 9 years. Most of the material I write on deals with personal finances, education, and news. I am a published author with a book and several eBooks.

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