Tips to Save Money on a Budget of Any Size

October 15, 2014

saving moneySaving money can be a challenge, especially for new Chicago homeowners on a tight budget. The key to a successful savings plan is to start with small, realistic goals that you know can be achieved while becoming even more aware of your family’s spending habits.

In a new article, “

Five Ways to Save Money – Even on a Tight Budget,” the experts at the Equifax Finance Blog offer five ways to start increasing your savings today:

  • Starting with a small budget, even as little as $5 per week, can add up over time. While it may seem that it’s not worth saving an amount so small, setting an attainable goal will increase your confidence that you can be successful, allowing you to slowly increase your savings amount over time. To boost your chances of success, the experts at the Equifax Finance Blog recommend setting up an automatic draft into your savings account.
  • Take a closer look at your monthly recurring expenses and bills, such as your car payment, homeowner’s insurance, cell phone bill and more. By modifying your plan or renegotiating your monthly bill, you may be able to get a better interest rate or payment plan that will allow you to save more.
  • Consider the way your family spends money on food, and determine if you can find extra savings. This is one of the easiest ways to cut a few additional dollars out of your spending budget. For example, if you often stop for a store-bought coffee when you’re running behind, try setting your coffee maker to automatically make your coffee about 10 minutes before you leave home, ensuring that you can grab it and go. Cutting out small amounts in your grocery bill or fast food habits can quickly add up to substantial savings.
  • Experts recommend setting aside 15 to 20 percent of your pay into a retirement plan. While you may not be able to access these savings for years to come, they’re important and shouldn’t be overlooked. Resolve to increase your contributions by at least one percent each year around the time you get your yearly raise, and you’ll barely notice the change. Plus, your employer may match your contribution, which is essentially free money.
  • If you have a credit card that offers cash back rewards, use that additional income as savings instead of spending it by immediately putting it into your savings account. However, if your credit card only allows you to use your cash back rewards to redeem gift cards or merchant discounts, use those towards birthday or holiday gifts that you’d be buying no matter what. Then, take the same amount that you would have spent on the gifts out of your checking account and place it into your savings account.

No matter how much money you make or how tight your budget is, there are ways to start increasing your savings. Learn more by visiting the Equifax Finance Blog today.

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