Believe it or not, most people can start saving money with just one penny. The intuition is similar to Couch to 5K: Start with an insanely small amount and work your way up. Instead of nine weeks, this entire activity will take you a year to complete. If you follow the goals that I set for you, you will have saved over $1,700! The secret is simple: Literally start saving with just a penny. (more…)
Recently, I wrote an article about how much is really enough to have in our savings accounts. After thinking about it, I thought to myself, “How much should we have in our checking accounts?” After talking with some people about it, it’s become apparent to me that many people think it should be similar to the minimuim they keep for their savings account.
If you read my last article, you know that your minimum savings should be equal to all of your living expenses plus necessity expenses for each month that it usually takes you to find another job. This is a bit much to require yourself to have in your checking account as well. If you can do it, more power to you. For the rest of us, the idea revolves around purchasing power.
Now that tax season is upon us, I’d like to ask you something: If you’re able to, do you currently have a plan for saving money? Whether or not you do, have you ever considered how much you should have in your savings account? There’s the 50/30/20 rule for budgeting as well as the 10% rule for retirement, but we’re not talking about methods for saving money. Instead of thinking how to save it, I want to get you thinking more about how much you should save.
If you’re a reader of mine, you most likely have a bank account. If this is the first article of mine you’ve read, it’s still very likely that you have a bank account. There’s this other side of banking that people usually don’t notice unless they’ve explored their bank’s website. They see all of these other types of accounts and services, but they’re too confused to go exploring it. Let’s clear up that confusion. You might actually find that some of these accounts are much better to have than a regular savings account.
I know, it sounds counterintuitive to eat out. Let’s be honest. The most cost-effective way to save money on eating out is to not eat out at all. But this is unrealistic. Most people with some kind of disposable income are bound to eat out at least once per month. If they have more willpower than most, then they may go two or three months without eating out. Since it’s inevitable, let’s go over how to save some money while you do eat out.
Whether you’ve saved it up, inherited it, or received it as a gift from family, if you have some money saved up and you don’t know what to do with it, the best thing to do is to invest it. No, I’m not saying to buy land, gold, or foreign currencies. I’m not even saying you have to trade stocks. What I’m saying is that you should learn about how to invest your money so that it grows while you age.
When it comes to saving money, there are many ways people have thought of to stretch their budget. Some use coupons, others use thrift stores, others go to dollar stores. While I, too buy a lot of things from the dollar store, there are many things that you should avoid like the plague. They always seem like a good buy, but trust me, they’re not. There are also a lot of things that are actually a pretty good deal from the dollar store as well.