By saving money you will be prepared for unexpected expenses or the big purchases you want to make in the future.
General Information
Saving money will provide you the extra money required when you need to fix something, or an emergency arises. Knowing the difference between “wants” and “needs” can help you save money, especially when times are tough. No one knows when an emergency expense may arise, but planning ahead and saving money when you can help when a need arises. Creating a budget can be confusing and a bit intimidating, especially if you have never done it before, but it is an important step to knowing where your money is going. Here are five tips to help you begin saving money:
1. Spend less money. It may sound easy to spend less, but if you are not careful it is easy to spend your entire check before the next one comes. The goal of spending less is to live within your means.
2. Establish a personal budget. By developing a budget you create a plan on how much money you should be spending each month. You will be able to track the money you make and what you spend.
3. Plan your meals. If you plan meals ahead you can purchase some food items in bulk. When you do buy in bulk, make sure the food won’t expire before you use it all. If you throw away a lot of food, then you probably aren’t saving money.
4. Be a smart shopper. Sometimes stores increase prices before sales so the customer is not actually saving money. When you are looking for good deals you should take advantage of buy one, get one free, 50% off and other huge discounts. Some stores like Rite Aid, Walgreens and CVS also have free reward programs, which give you money back or points. You can also visit local food pantries, such as the one at Preble Street Resource Center.
5. Purchase used items when possible. Sometimes new is better, but there are often great deals on used items. For example, when you buy a used car you save a lot of money. You can find used clothes, electronics, household items, school books, and much more online and at second-hand stores.
Resources
To learn how to budget, go to www.consumer.gov and select their “Managing your Money” tab. This will bring you to helpful resources, such as a printable budget worksheet.
Go to www.smartaboutmoney.org and type “Wants vs. Needs” into the search bar. This will bring you to a printable worksheet that helps you identify your wants and needs and gives you tips on how to become a smarter shopper and saver.
Go to www.smartaboutmoney.org and type “Emergency Fund Worksheet” into the search bar. This will bring you to a printable worksheet so you can prepare for an unexpected event by starting to save now.