Money Saving Plan: How to Save More Cash


May 23, 2017 Facebook Twitter LinkedIn Google+ Finance


Money Saving Plan

Most of us like the idea of saving more money. We have specific goals we’d like to reach whether it’s traveling to some far-flung destination or buying our first home.

Yet a good deal of Americans, more than 25 million to be exact, are living paycheck to paycheck. We want to save but for one reason or another, we aren’t doing it.

So how do you start down the path of financial security and prepare for your cash flow future? You have to have a plan in place. That’s where we can help. We’ve outlined some simple steps for an easy- to- follow money saving plan that will help you reach your financial goals.

Ready to get started?

Create Your Big Picture Money Saving Plan

This is where you decide what it is you’re truly saving towards. It’s best to make your goal as tangible as you can.

Do you want to retire a millionaire? Send your kids to college? Buy a vacation home?

The more you can visually realize your long-term goals, the less effort it will take to curb your spending and stash your cash.

Track Your Expenses

So far you’ve got a clear picture of what you’re saving for. Now, you’ll need the same amount of clarity when understanding what expenses you have to keep your money saving plan moving forward.

The simple way to do this is to start with the last three months so you get a good idea of an average on all expenses. You can find all the data you need by logging into your bank account and filtering your statements by spending.

Some banks will even categorize your funds for you. Don’t forget to include your credit card statements as well.

Create a Budget

Yes, we said it, the b-word. You knew this was coming, didn’t you?  It’s time to budget.

The first step in coming up with a budget is to determine your net monthly income. This is the amount of money you take home after state and federal taxes, social security and any pretax benefits come out of your pay.

The good news is you’ve already done most of the hard work in finding out your fixed expenses. Now, simply plug those monthly expenses and any variable expenses such as car upkeep into your plan. The numbers should start to appear to give you an idea of where your money is going each month. This is where that commitment to save comes in.

Can you separate your expenses even further into “needs” and “wants” categories?

Tip: To help manage, check out any of the free resources online such as mint.com and BudgetTracker.

These tools allow you to take charge of your money by keeping tabs on your spending and savings, as well as giving you the flexibility of updating your money saving plan whenever you see fit.

Your budget is ever- evolving, so remember to adjust based on raises, meeting a set goal, etc.

Get Rid of Debt

The next step in our money saving plan is paying off debt. To make this step a little less overwhelming, we suggest starting with loans that have the highest interest rates. Cards with interest rates in the double-digits can end up costing tens of thousands in finance charges over the life of the loan.

Yet, high-interest rate loans aren’t the only type of debt we accrue. From not buying sale items at the grocery store to neglecting to look for free coupons online, even our daily purchases can flatten our cash cushion if we’re not careful.

Tip: Online coupon sites can help you save big with percentages off purchases on everything from clothes to kitchenware.

Use these sites to cut prices on necessary expenditures and add more cash to your wallet.

Tip: Get free debt counseling

Sometimes we need a little help kicking a bad habit. Overspending or spending beyond our means is a big problem in today’s culture and sometimes it gets out of control. Consumer Credit Counseling Services is a specialized network of certified counselors dedicated to helping people get their spending habits under control.

They offer free sessions on credit consolidation, negotiating with creditors and manageable ways to pay off current debt.

Set-up Automatic Savings

This step in our money saving plan allows you to bolster your savings without even thinking about it – after you set-up the transfer of course.

You can do this by either transferring money from a checking account to savings or an investment account through your bank.

You can also go through your employer and have them deposit a set amount of your check directly into a savings or retirement account each payday.

The great thing about transferring savings funds this way is you learn to live on less than you make. In addition, you can set-up separate savings accounts for each financial goal you have.

For example, a certain percentage of your paycheck goes into retirement, another portion goes to saving for a vacation and yet another part of your savings goes to an emergency fund stash.

Find the Right Fit for Funds

We mentioned separating accounts based on each of your financial goals but the type of vehicle in which your investment grows is also an important factor.

The simplest way to find the right type of account is to divide your money saving objectives into short and long term goals.

Tip: High- yield savings accounts or those with variable interest rates are best for short-term aims. While Roth IRA’S, 401 K plans, and broker investment accounts work better for long-term goals.

With your money saving plan in place, you’ll be able to sock away more cash in the bank and set yourself up for financial success.

Need more ways to save money? Start by scoring big savings on daily purchases here.

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