PRACTICAL SAVING IDEAS

By Starr West

Spend less, Save more

Personally, I believe it’s hard to save money without a goal. I get no real joy from seeing my bank balance increase unless I can match that with a goal. Having a goal also helps to create a plan and generates the motivation to stick with it. 

When you begin with a plan, choose simple short-term goals or create a mix of short-term and long-term goals. If you need the family to get on board, it’s a good idea to create short-term goals that benefit the entire family.

The whole point of a saving plan is to enable you to pay your bills, meet your living expenses, save money and reach your financial goals. Creating goals is the time to think big. What would you like to do? Would you like to take an exotic vacation, buy a new house, a new car? Perhaps you’re thinking more long term and want to set aside money for your retirement?

Whatever your goal, it's important to write it down and place it somewhere that you will see it on a daily basis. If you want to pay off your mortgage, put a picture of your home on the fridge. Whenever you feel like going on a spending spree, look at your "dream house" and imagine how great it will feel to walk through the front door after you've made the last payment.

So, let’s create a saving plan. Make sure you have the income and expenses sheet you created last week. (or create one now by listing all your income and expenses in two columns). Use paper or computer, chose whatever method that is most comfortable.

The first step is to look at how often you are paid. Next, look at your expenses and divide your bills according to your pay period, rather than paying large amounts out of one pay. Some companies allow you to pay a small amount each week before the bill arrives, reducing the amount due. ERGON provides this facility.

After your bills are paid, you need to think about living expenses; look at where your money goes and decide if it’s going in the right places. An easy way to cut your spending is to wait 24 hours before you buy anything that costs more than $100. Many people buy things on impulse. By implementing a waiting period, you may find yourself saving a lot of money!

You can also cut your expenses by using the Internet to view weekly sales ad for the grocery stores you plan to visit. Create a meal plan based on what is on special. You can also create a shopping list with prices before you leave home. If you know how much your groceries will cost, you will be able to stick to your budget.

Living with a saving plan may take some time to adapt to, but if you keep working on it, it will very soon become second nature to you. Not only will you be saving money, time and energy, you will be setting a wonderful example for your children.