Yielding Wealth | Personal Finance

5 Ways to Increase Your Savings

by miranda on July 16th, 2008

This is a guest post by Heather Johnson.

The recent economic downturn has come about due to many different factors.  Instead of pointing fingers at the different causes, it’s time to get serious about your savings.  It really does seem that as each day goes by and the gas prices continue to soar, we feel the crunch even more in our wallets.  So even though it seems like now’s a hard time to step up or start your savings plan, you need to consider how it’s going to get increasingly more difficult down the road.  If you can set aside a little bit each week and stick to your plan, you’ll be much better off in the future.  Here are five tips to help you save money in this rough time:

1. Increase what you contribute to your retirement account.  Most companies now offer either a 401 k plan or 403 (b) plan.  Contribute as much as you can from your paychecks to your plan.  This money comes out of your check before being taxed, so remember that it’s never a good idea to take money out of your account before you’ve the government-regulated age of 59 ½ so you don’t get hit with the crazy taxes and penalties.  Save now for later.
2. Eliminate your bad habits.  Do you smoke?  Do you drink a little bit too much?  Whatever your vice is, work on either cutting down or eliminating it.  If you are a pack-a-day smoker you could save yourself at least two thousand dollars a year by quitting.  Also consider the impact it would have on your life insurance policy as well.
3. Open up a piggy bank.  This may sound foolish, but think about it.  If you can put a fifty dollar bill or a hundred dollar bill aside each week it will add up quickly.  This way you can save on your terms and don’t have to be locked into bank fees or any other headaches that can arise when you’re dealing with an investment company.
4. Get rid of the incidentals.  Take a look at your credit card statement and figure out which expenses you can cut out of your budget.  Are you getting a magazine that you never read?  Do you pay for a land line when you only use your cell phone?  There are bound to be a bunch of little things you can eliminate.
5. Save money at work.  Are you constantly going out for lunch or stopping for breakfast in the mornings?  Bring your lunch with you and make coffee at the office.  These little expenses may not seem like much but you’ll start seeing a little more a bulge in your wallet if you can cut some of these items out of your daily budget.

Heather Johnson regularly writes on student travel reward cards. She invites your questions and writing job opportunities at her personal email address: heatherjohnson2323 at gmail dot com.

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POSTED IN: Family finances, Money advice, Personal Finance, Saving Money