Let’s honor National One Cent Day by exploring ways to save the money you work hard to earn. You may think that in order to save big, you need to make big deposits, but that is not always true. Many of us struggle from week to week, and even rely on payday loans to simply get by. Of course, the more you put aside the more you will have later, but you can also build a nice nest egg with just a few cents here and there.
Whether you are counting pennies to put into your savings, or fanning yourself with more cash than you know what to do with, the lesson is the same. The only way to build and maintain wealth is through discipline and dedication. You may only have $20 a week to spare, but if you educate yourself on the fundamentals of financial growth, stick to your budget and make informed decisions, the results over time can be truly astounding.
Before you get started, get acquainted with your finances. You may think you know everything there is to know about your monthly expenses, but you might be surprised at the gaps in your knowledge. In order to really understand where your money is going, you need to dive a little deeper. Look beneath the surface. For instance, take a look at a monthly expense like your cell phone bill or electric bill.
Are you familiar with the fees and additional charges you are paying for each billing cycle? If not, then you don’t know everything you need to know about your finances. The goal here is to understand where every penny you spend is going each month. The goal is to not be in the dark about where the money goes. Taking the time to understand your monthly expenditures is the first step towards finding ways to save.
Take a look at what you’re spending each month beyond the essentials. If you are eating out 5 nights a week, that is unquestionably affecting the amount you are able to add to your savings. Be realistic and ask yourself, “How long can I afford to maintain this lifestyle, and at what expense?” If you are working only to maintain an indolent lifestyle and have nothing to show for it, you are doing yourself a huge disserve.
You can still enjoy your guilty pleasures and treat yourself from time to time, but do it on a smaller budget. Imagine the money you can put into your savings account or in an investment account by simply eating at home during the week, and saving dining out exclusively for Saturday night.
Setting limits on your spending is the only way to reign in your finances. If you spend irresponsibly, an empty bank account will be the end result. Do you know how many times you swiped your bank card or credit card in the past month? By setting a budget, you allow yourself the freedom to enjoy the money you work so hard for, but not at your expense of your financial stability.