Saving money is tough, especially when you want that new pair of shoes, to attend that once-in-a-lifetime concert or must have the latest video/computer game. Learning how to handle your money today gives you more financial freedom in the future.
Tip #1 – Pay yourself FIRST
Decide now how much you want to save and treat it like any other expense. The goal is to make savings as important as your car insurance and cell phone bill. Put the amount you plan to save each paycheck into a savings account where you will not be tempted to spend it. Once you start saving regularly, you won’t even miss the money.
Tip #2 – Saving is connected to expenses
How much should you save? As much as you can! The more expenses you have the less you will be able to save. Reducing your expenses will increase your savings. You will always have more if you pay yourself FIRST.
Tip #3 – Track where your Money Goes
Do you know exactly where you spend your money? Gas, car insurance, cell phone bill…those are the obvious ones. But, what about the new app you downloaded, your third trip to go get coffee this week, fast food or dinner last week with your BFF? It all adds up. Get out a notebook or open up a new notes page on your phone and start keeping track of all the money you spend. Include what you bought, how much it cost and why you bought the items.
Tip #4 – Cut Your Expenses
Now that you know exactly where your money goes, you can make cuts and start saving. Instead of that extra dessert you buy every day at lunch, why not pack a healthy snack from home? Those trips through the drive-thru could be substituted with cheaper and healthier food from the grocery store. Cutting the gourmet coffee trips each week could turn into $520 savings over the course of a year.
Tip #5 – When you Must Spend, Shop SMARTER
Now that you have that extra $40 per month from cutting your coffee, pay yourself FIRST and put it into SAVINGS. Comparison shop by checking multiple online retailers before you make a purchase. Check to see if a downloadable coupon is available to use in store. Sign up for your favorite retailers e-newsletters and wait for items to go on sale.
As always, Eastex CU is here to assist or answer any questions you might have. Remember, your credit union is not only here to help you save, our Loan Officers can advise you on building credit, saving for your first car or even for college. Stop in and visit us today!