If you have anything in common with most consumers, you likely find that there is little extra money left over at the end of each month. You might hope to save for the future, but you may feel like you just don’t have the opportunity now and that you should wait until a little later on in your life when your finances are more stable. Sadly, financial security often only comes when you call it, and most times that is through responsible financial activity.
If you want to save money each month, but don’t know how, here are five ways to build your wealth:
Pay Down High-Interest Debts
One of the easiest ways to remain in debt forever is to maintain credit balances with high interest rates. When paying down debt, always focus first one the highest rate and work your way down to lower-interest lines of credit such as mortgages. Many people find that making minimum monthly payments on accounts where interest is accumulating rapidly oftentimes only reduces their principal balance by a small amount. Many times, this gives the feeling that they are not making any headway in clearing out their debt and is a cause for financial stress. By paying off your high-interest debt, you can likely free up a significant portion of your income to save for your future rather than lining your creditor’s pockets.
Go On The Hunt For A Salary Increase
Whether it is at your current job or at another job, take the steps that you need to in order to get an increase in salary. This may entail searching the market and trying to find a position in your field with better monthly paychecks. At your current company, you this could mean taking advanced courses and training seminars to increase your worth to your business. Since you have already budgeted to get by on a set amount of income, any extra chunks of your salary should be considered a bonus and funneled into your savings and investment accounts.
Smoking may be bad for you, but that isn’t stopping millions of smokers all around the world. If you smoke and choose not to stop for health reasons, perhaps the financial motivation may be more likely to sway you. By quitting smoking and instead of committing the price you would pay towards your savings, you can quickly build quite a nest egg. For many smokers, these savings can amount to thousands of dollars each year in addition to the countless health benefits associated with stopping smoking.
Monitor Utility Bills
Expenses associated with housing are one of the biggest money costs for most consumers. You may not be able to do too much about your monthly rent or mortgage payments, but you can definitely track and control your utility expenses. By cutting back excess use of electricity, water and other utilities around your home, you can create a significant monthly savings. Small changes in your utility-use habits can add up over the course of the month or the year and may means thousands of dollars freed up in your budget to pack away for the future.
Avoid Impulsive Marketing Tactics
In today’s world, some consumers fall prey to big businesses marketing tactics in every aspect of their lives. If you want to successfully save money, you need to disconnect yourself from the status symbols and impulsive purchases that so many people spend a large portion of their income on. Whether it is a shiny new car, trendy clothing or a new pair of shoes, use restraint and stop to think about whether you really need to make this purchase. There is a big difference between “want” and “need”, and many people are never able to save money for their retirement because they become victim to spending money freely on frivolous purchases that they often regret later on. When confronted with a large, impulsive purchase, agree with yourself to wait a day to spend your money. If after a day you still feel it is the right decision, then go ahead. Otherwise, take the money you were planning to spend and put it into your savings or investment account.
Each of these five ways to save money will put you ever-so closer to financial security. By spending the time needed to apply each tip to your life, it is easily feasible for many people to save over ten thousand dollars each year that would have otherwise been wasted or left in the pockets of others. Acquiring wealth isn’t an overnight process, but is something that is attainable by everyone – not just those that are already rich.