Tuesday, February 28, 2012

Steps To Take To Develop Money-Saving Habits

People aren't born from birth to be savers. It takes time to develop money-saving habits. Follow these tips and you'll be saving hundreds of dollars a month in no time.

Budgeting

The first thing you need to do before you can develop your money-saving habits is to decide realistically how much you can save. To accomplish this, you must first devise a budget that lays out all the money you earn and your essential spending. This tells you how much discretionary income you have that you could be saving.

Don't Pay Too Much

The first money-saving habit you should develop is a paranoia about prices. Assume you are paying too much for everything from groceries to car insurance. Then test that assumption. Go to online price comparison sites to see if you can get lower prices on insurance, loan rates, rates for TV, Internet and phone service, and many other services and products. If you can get a lower rate, don't be shy about switching, as long as the new product or service meets your needs. Make sure to take advantage of any chance to lower your prices. This includes bundling insurance policies and cable, TV and Internet services to get discounts.


Spend Money to Save Money

Making impulse purchases is not a good thing, but that doesn't mean its always bad to buy more than you need. If your local supermarket is having a huge sale on products you need and use regularly, buy large amounts and stock them away for future use. If you have a freezer or extra refrigerator, you can buy large amounts of meat and vegetables when they are on sale and freeze them for later use. You can compound your savings by using
supermarket coupons or vouchers during these sales. When buying clothes and shoes for your kids, take advantage of really good sales by buying extra items in larger sizes for use a year or two down the road.

Don't Be Brand Conscious

The best savers out there don't get hung up on the names on their labels. To save money, buy the store brand for food and household purchases. And stay away from designer clothes and shoes. Most of the time they are not better quality than off-brands, they simply cost more because of their name.

Don't Pay for Something You Can Get for Free

If you like to read books, get them from your public library instead of buying them. Read newspapers and magazines online instead of paying for subscriptions. Trade services with friends and neighbors.

These are just a few of the ways you can get started on your way to becoming a saver. There are many more. Follow as many steps as you can and you'll be a much richer person.

No comments:

Post a Comment