If You're Still Not Saving, Start Now
We spoke to financial expert Jean Chatzky, a contributing editor for MORE magazine about the saving habits of Americans. Now, more than ever, she says, is a good time to save. So how do you do it?
" Tip number one", says Chatzky, "the most important thing you can do to get control is to track your spending. People have no idea where their money goes. Figure out what you spend a week or a month, if you can stand it. Go through and track every dollar you spend. This will make you realize just how much is going to dry cleaning, just how much is going to taxis. Having that information allows you make changes and spend less.
" If you haven't gone thru the process of trying to lower your monthly bills, if you haven't called the cable company or the phone company or the cellphone company in a while to ask for a reduction, pick up the phone. It'll take you 15 minutes. You just might get the reductions that could save you hundreds of dollars.
" Have goals. Having goals actually helps people get where they're going. If you don't have goals, then you're driving on a street without a map without a destination. It really doesn't work.
" Not only should you have goals, you should break them down into manageable, bite-size pieces.
" We know that one of the reasons middle-income people don't save money is that they set the bar too high. They set goals that are so lofty they feel they can't attain them. Then if they fall off the wagon they don't start again. People who aim to save less, actually save more in actual dollars than people who start higher.
" If we could get everybody to save 10% of what they're earning, we would be doing an amazing thing. But a lot of people look at those numbers and say no way. I would urge them to then aim for 3% and if you can do 3%, then boost it to 4%, or 5%. I don't really care where you start, I care that you start somewhere and that you make your goal and then go beyond that."
Helpful websites:
Learn how to be frugal and live a full life www.ideasthatspark.com
Improve your financial future www.richdadworld.com
Use online tools www.bankrate.com
or www.mint.com
Comments: 1
Howard,
I am guilty!
I spend a lot of money eating out. I rarely eat in. If I do eat in, I order from outside my home.
Ok, I am spoiled, but for over 30 years of my life, I cooked, and cleaned, and did all those things I hate to do.
Last week I went on a spending spree. That's, because, my vacation went bust. I felt that the money I would have spent on my vacation, I would spend shopping for things. Many things!
It felt good. I really went overboard on a couple of them, however, I deserve to treat myself well. I work hard for my money, and so what, I will make it up.
I don't do this everyday, actually, I had been very frugal with myself, spending on others, and buying other essential items for the home.
I love myself too much, not to spend money on me for a change. I forgot about toilet paper shopping for a day or two.
I have saved enough to hopefully give me a good old age.
Regards,
Lee