I read an article on CNBC found here that says that Bankrate recently did a study and found 65% of Americans are saving little to no money. Most Americans aged 55-65 retire with a mere $120,000 in savings. That’s not going to last very long without a paycheck.
Why? Most of us have a few reasons for not saving money, or not being “able” to save money.
Here are some top reasons for not saving money
- I’m not sure how to save money
- I can’t save money
- I don’t make enough money to save
- Prices have gone up and now I can’t save
In reality people are spending more than they are making. This is happening everywhere and I hear this all the time. So how can we save money if we have so little? Cutting costs, anywhere we can. That’s how.
Saving money doesn’t have to be a huge ordeal. Let’s go with 5 ways to help you save YOUR money.
- Establish your budget – This is a perfect way to begin. On the first day of a new month, get a receipt for everything you purchase. Stack the receipts into categories like restaurants, groceries, and personal care. At the end of the month you will be able to clearly see where your money is going.
- Budget with cash and envelopes – Have you heard of this one? Here’s how it works, If you have trouble with overspending, Put your cash into an envelope for spending, then spend only the money you set aside in the envelope and once the cash is gone, it’s gone.
- Go for short-term saving goals – Short-term? Yes! Make a goal such as setting aside $20 a week or month, rather than a longer term savings goal. People save more successfully when they keep short-term goals in sight.
- Save your loose change. Really! Putting aside just $1 a day for over a year will get you over 75% closer to a $500 emergency fund. It will bring you over $350 in a year.
- Commit to eating out one fewer time each month. Save money without sacrificing your lifestyle by taking small steps to reduce your dining budget. Start off with reducing the amount you eat out by just once per month I wrote a post regarding this a little while back found here go check it out.
These 5 ways to save money should help, and we all need help with saving money, especially in this economy.
Do you save money? What are some tips you have?