Financial Independence Begins With Smart Saving Strategies

Written by: Lori Gracing
11/18/2019

money-management

A healthy money-saving habit is important for you to reach your financial goals of prosperity. Focusing on where your income is being spent is the first step towards learning how to manage money. Every successful person who achieves their financial goals knows where their cash is going.

Many people start saving money over time to use that cash to create more wealth. How you benefit from learning the secrets to save and grow money will be the difference in what you have. This is only for you to use as a motivation to set future goals. You might have to sacrifice in some areas to do well financially in the future. Isn’t that worth it?

Where The Money Goes From Income

A huge amount of monthly income is simply wasted by families with poor spending habits. Buying things on a whim is one of the largest problems people have of never having enough money to move ahead in life. This is the mindset of most people in society today. They spend out of want instead of the need.

Think about all the money people spend on groceries. They might take the grocery list with them only to end up buying extra items that they had no plans to purchase. A simple way to solve that problem is to pay with cash. Only have enough money with the grocery list to pay for what you intended to buy. Learn to coupon shop at the store. Buy extra items when they are on sale to stock up. This can help save you hundreds of dollars a month on groceries.

The same philosophy can be used at department and clothing stores. Learn to budget shop for items on sale. Use rebates and sales to save more. Many stores have annual sales to bring in customers. They use these sales to get you inside their stores because they know you will see something else that you will purchase. Pay with cash and forget about the credit cards. Learn how to say no when you walk into these stores.

Going out to eat often destroys income fast. Skip some of these trips with the family to restaurants to eat healthy meals prepared at home. Try taking lunch with you to stop daily spending habits on food while you’re at the workplace. Those two suggestions alone can save you thousands of dollars over a year.

Eliminate Credit Cards To Save More

Credit card debt is another problem that people are struggling with each month. Several monthly payments on credit cards can easily add up to a lot of cash over a year. Stop signing up for new cards to end this vicious cycle. Pay off those cards starting with the lowest amount owed.

Interest on cards will eat up monthly income. People only pay enough on the bill to get by to the next payment without ever touching the card balance. This continues for years until finally, the use of plastic gets people in financial trouble. Don’t use cards to help pay for big-ticket items. Think about purchasing a new television or riding mower on credit for several days. It could be something you need not waste money on at all.

Organize How You Spend Money

Sit down with your monthly bank statement and notebook. Look over where your money is being paid on bills from your bank statement. Do you see areas on the statement where you could save money?

Mortgage, rent, utilities, and automobile payments are necessities in life. Anything else on that statement is trivial. Make a list on paper of the bills you must pay that are the most important. Add the totals of these amounts. Those are the bills you subtract from your monthly income. The balance of what you have left is money you can use for other things, including savings.

Think about what was left, where and what that money was spent on. Write down on your notebook how much money was spent on these other purchases. Add those totals together to figure out how much money you can put into a savings account. Think about where you can open a savings account. Open an account to start saving as soon as possible.

Investing Savings To Make Your Money Grow

Learning how to put income into savings accounts is the initial step to become financially independent. Knowing how to invest cash to grow wealth is how many people become so successful. Investing is a way to grow more wealth you have over a period of time. Many types of funds are available to invest money. CDs, IRAs, and Money Market Accounts are a few.

The stock market has to be the number one investment option available today. When you can invest some savings into a stock portfolio, you’re on the way to success. Time is what the market is all about. Long-term investing is where you can make the most cash.

Management firms that offer funds, account management, retirement plans, and other services, are a good option for people who want to invest money to build wealth. Your money invested builds wealth from stocks you own in different companies. Adding more money to the account increases your ability to purchase more stock and bonds in the fund you selected.

If you’re working for a good company, you should already have a 401(K) retirement plan started. The great things about these are that your employer will usually match portions of your contributions. The more money you put into the plan increases the amount of cash you will have in benefits.

Just remember two important things. Save money wherever you can find it. Invest any savings possible to make additional income for you in the future.


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