Savings and Investments

Saving money may seem next to impossible in economic times like these but what you need to know is, small changes really do add up!  Start by developing a spending plan and then track how you spend your money.  Notice any spending leaks?  Things like buying coffee on your way to work each day add up over time.   Just take a look at the math: $3.00 for coffee x 5 days per week= $15 a week.  That's about $60 per month or $720 per year!  Now, it's probably not practical or even advisable to make drastic changes overnight.  That's because it's unlikely that you'll stick with these changes over the long haul.  Instead, think of ways to "tinker" with habits that are costing you money and that you are willing to change.  For example, you might buy coffee only two days per week.  That's a savings of $9 per week, $36 per month or $432 per year and you still get to enjoy the pleasure of an occasional coffee shop mocha.   This "found" money could be the start of your emergency fund.  And that brings us to another tip, plan for financial emergencies.  Whether big or small, there will always be one and it is good to have an emergency fund in place for your financial peace of mind.

Another strategy for saving money is to make it automatic.  If you're working, ask your payroll department to deposit a certain percentage of each paycheck to a savings account.  Starting small is just fine--even $10 per check will get you into the savings habit.  Later on, you can decide to save even more, just remember to adjust your spending plan accordingly because you will have less disposable income each month.  Chances are, after the first few weeks, you won't even miss this money and most people find it satisfying to watch their savings add up over time. 

If you'd like to learn more about saving money, please visit our resources page.